Business
Teako Minerals Announces Termination of the Pinnacle Option Agreement to Allow Maximum Financial Flexibility and Project Advancements
Vancouver, British Columbia--(Newsfile Corp. - November 28, 2023) - TEAKO MINERALS CORP. (CSE: TMIN) (the "Company" or "Teako") announces that effective Novembe
About this update from Teako Minerals Corp
[{"type":"text","content":" Vancouver, British Columbia--(Newsfile Corp. - November 28, 2023) - TEAKO MINERALS CORP. (CSE: TMIN) (the \"Company\" or \"Teako\") announces that effective November 27, 2023, the Company has provided Pacific Empire Minerals Corp. (TSXV: PEMC) a notice of termination on the option agreement (the \"Pinnacle Option Agreement\"), dated August 25, 2020, and as amended on August 26, 2022. The Pinnacle Option Agreement granted Teako the right to acquire a 70% interest in the copper-gold Pinnacle property in B.C. from Pacific Empire Minerals Corp. Teako will leave the property in good standing. As a result of the termination of the agreement, Teako will also request reimbursement of the reclamation bond, paid by the Company in relation to the drill permit on the property, for a total of $22,600. Termination Rationale Following a full project review of all the jurisdictions, the Company has deemed the terms of the Pinnacle Option Agreement too much of a financial liability for the Company at the current stage to continue. In particular, the Company considered the following factors: High Work Commitments and Costs: The project requires an additional investment totalling approximately $2,985,000 until August 2026 between option payments and exploration commitments. The associated financial burden was deemed unsustainable, significantly surpassing the now highest work commitment in our current project portfolio, which stands at C$100,000. A Desire for Full Control: Teako aims to maintain maximum control over current and future project costs, allowing Teako to exercise maximum flexibility in its project portfolio across the various jurisdictions whilst enabling maximum exposure to other potential opportunities. Portfolio Flexibility: This decision aligns with Teako's strategic goal of ensuring maximum flexibility within its project portfolio, enabling advancements and developments across all target jurisdictions in line with Teako's long-term vision and objectives. Timely Action: Termination was a necessary step to maintain the project's good standing while adhering to the termination clauses outlined in the Pinnacle Option Agreement. Bond Return: As part of the termination process, Teako will be entitled to the return of the reclamation bond currently in place. Equally Favorable Terms: Terminating the Pinnacle option agreement means that ...