Trade Suspend4 Jun 2020 15:21
Norseman Capital Ltd. Options Caribou Property in British Columbia
Source: GlobeNewswire Inc.
Norseman Capital Ltd. (NEX: NOC.H) (“Norseman” or the “Company”) is pleased to an announce that it has entered into an option agreement (the “Option Agreement”) with Cloudbreak Discovery Corp. (“Cloudbreak”) to acquire a 100% interest in certain mining claims located in the Skeena Mining Division area in British Columbia (the “Caribou Property”). The entering into of the Option Agreement is subject to the approval of the TSX Venture Exchange (the “Exchange”).
Pursuant to the Option Agreement, in order to fully exercise the option (the “Option”), the Company shall pay to Cloudbreak an aggregate of $80,000 and 2,750,000 common shares in the capital of the Company (“Common Shares”) in three installments.
The first installment is composed of $10,000, payable on the effective date (the “Effective Date”) of the Option Agreement and 1,000,000 Common Shares issuable within five business days of approval of the Exchange. The second installment is composed of $20,000 and 750,000 Common shares and is payable on the first anniversary of the Effective Date. The third and final installment is composed of $50,000 and 1,000,000 Shares and is payable on the second anniversary of the Effective Date.
In addition, pursuant to the Option Agreement, the Company shall grant to Cloudbreak a 2.0% net smelter return (“NSR”) royalty. The Company shall have the right to acquire one-half of the NSR from Cloudbreak at a price of $1,000,000, in which case the Company shall have the right to acquire the remaining half of the NSR at price of $4,000,000, for an aggregate of $5,000,000.
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