Mr. Stuart Ross reports
NEW ENERGY METALS ANNOUNCES PROPERTY OPTION AGREEMENT
New Energy Metals Corp. has entered into a mineral property option agreement, whereby the company has acquired the exclusive right and option to purchase, subject to the reservation of a 2-per-cent net smelter returns royalty, a 100-per-cent title and interest in and to 26 mineral claims covering approximately 7,000 hectares located in the Omineca mining division of British Columbia.
Pursuant to the terms of the option agreement, the Company is required to issue the following common shares and complete the following cash payments to the optionor of the Property (the "Optionor"), and completing the following staking obligations:
- pay an aggregate of $220,000 in cash to the Optionor as follows:
- $25,000 on the execution date of the Option Agreement (the "Execution Date");
- $45,000 on or before the 12 month anniversary of the Execution Date;
- $60,000 on or before the 24 month anniversary of the Execution Date; and
- $90,000 on or before the 36 month anniversary of the Execution Date;
- issue an aggregate of 1,200,000 common shares to the Optionor as follows:
- 300,000 on the closing date, which is anticipated to be 10 days following the date on which the TSX Venture Exchange accepts the Option Agreement pursuant to the policies of the exchange;
- 300,000 on or before the 12 month anniversary of the Execution Date;
- 300,000 on or before the 24 month anniversary of the Execution Date; and
- 300,000 on or before the 36 month anniversary of the Execution Date; and
- complete not less than $5,000 worth of staking or other similar acquisition of mineral claims within the Area of Interest (as defined in the Option Agreement) within 12 months of the Execution Date.
In addition, and subject to the exercise of the option by the Company, the Company shall be obligated to complete the following share issuances upon the occurrence of certain milestones:
- issue 200,000 common shares to the Optionor upon the publication of a positive preliminary feasibility study or pre-feasibility study on the Property;
- issue 200,000 common shares to the Optionor upon the Commencement of Commercial Production (as defined in the Option Agreement); and
- issue 200,000 common shares to the Optionor upon the successful determination of an inferred mineral resource or indicated mineral resource on the Property of not less than 2,000,000 ounces of gold.
The Option Agreement also includes certain advance royalty payments obligations following the 7th anniversary of the Execution Date.
The Company plans to provide a detailed summary of the Property in a separate news release to be issued in the near future.
The Option Agreement remains subject to approval by the TSX Venture Exchange.
About the Company
New Energy Metals is focused on the exploration and development of energy metals.
We seek Safe Harbor.
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