Business
Amended: Taranis Resources Inc. and Roca Mines Inc. - Option Agreement to Acquire 65% of FortyTwo Metals Inc.
(via Thenewswire.ca) In 2006, Taranis purchased 27 Crown Grants north of Trout Lake from th...
About this update from Taranis Resources Inc.
[{"type":"text","content":"Amended: Taranis Resources Inc. and Roca Mines Inc. - Option Agreement to Acquire 65% of FortyTwo Metals Inc.(via Thenewswire.ca)\n \n\nLakewood, Colorado / TheNewswire / May 19, 2015 - Taranis Resources Inc. (\"Taranis\") [TSX.V: TRO] and Roca Mines Inc. (\"Roca\") are pleased to jointly announce they have entered into a binding letter agreement dated May 15, 2015 (the \"Agreement\") pursuant to which Taranis has been granted an exclusive option (the \"Option\") entitling it to acquire 65% of the issued and outstanding common shares of FortyTwo Metals Inc. (\"FortyTwo\"), a subsidiary of Roca, by November 30, 2015. \n\n \n\nFortyTwo holds the MAX Mine facility which includes an underground molybdenum mine, crushing, milling and concentrating facilities, tailings storage facilities, mineral claims, mining leases, licenses and other holdings located near Trout Lake in the Revelstoke Mining Division of the Province of British Columbia. The MAX Mine facility is located 16 km by road from Taranis' Thor Ag-Au-Pb-Zn-Cu Project and is a molybdenum mine that operated from 2007 until November 2011 when depressed metal prices led to suspension of operations. The mine is currently under care and maintenance.\n\n \n\nThe Agreement and the transactions contemplated therein are subject to acceptance by the TSX Venture Exchange.\n\n \n\nOverview of the Agreement\n\n \n\nThe essential terms of the Agreement are as follows:\n\n \n\n(a) Taranis will made the following cash payments to Roca:\n\n \n\n(i) C$150,000 as a non-refundable deposit, allowing Taranis three months to undertake due diligence and initiate financing;\n\n \n\n(ii) C$25,000 payable on September 1, 2015 if the closing of the exercise of the Option has not occurred by August 31, 2015;\n\n \n\n(iii) C$50,000 payable on October 1, 2015 if the closing of the exercise of the Option has not occurred by September 30, 2015; and\n\n \n\n(iv) C$75,000 payable on November 1, 2015 if the closing of the exercise of the Option has not occurred by October 31, 2015. \n\n \n\n(b) In order to exercise the Option, Taranis will be required to make an additional cash payment of C$1,200,000 and issue 3,000,000 warrants to Roca, each of which will entitle Roca to purchase one common share of Taranis at a price of C$0.10 for a period of 2 years from the date of issuance.\n\n \n\n(c) During the term of t...