Sanatana Enters Into Option Agreement to Acquire 2,200 Hectare Gold Rush Project in Ontario and Announces Private Placement for Up to $1.5 Million in Gross Proceeds - Seite 2
Mr. Peter Miles, Sanatana’s CEO, commented, “With higher gold prices, the mining exploration business is rapidly improving, and the Gold Rush Project will give Sanatana a strategic land position in an underexplored and developing region of the gold-prolific Timmins area. We look forward to beginning exploration.”
Option Agreement Terms
Pursuant to the Option Agreement, Sanatana holds separate options on the Gold Rush North and Gold Rush South Projects. Sanatana may acquire a 100% interest in each project by issuing common shares and cash to South Shore as follows:
TIMING |
GOLD RUSH NORTH | GOLD RUSH SOUTH | ||||
Cash Payments |
Share Issuances | Cash Payments | Share Issuances | |||
On or before August 4, 2020 |
$15,000 | – | $15,000 | – | ||
Upon TSX Venture Exchange approval |
$15,000 | 1,050,000 shares | $15,000 | 1,050,000 shares |
And paying cash and issuing common shares to the holders of the underlying property interests as follows:
TIMING |
GOLD RUSH NORTH | GOLD RUSH SOUTH | ||||||
|
Cash Payments | Share Issuances1 | Cash Payments | Share Issuances1 | ||||
End of Year 1 |
$30,000 | $30,000 | $30,000 | $30,000 | ||||
End of Year 2 |
$40,000 | $40,000 | $40,000 | $40,000 | ||||
End of Year 3 |
$50,000 | $50,000 | $50,000 | $50,000 |
1. All share issuances are made on the basis of Sanatana’s 30-day VWAP on the TSX Venture Exchange prior to the issue date.
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In addition, Sanatana has agreed to spend a minimum of $250,000 in the aggregate on the Gold Rush Project prior to the one year anniversary of the effective date of the Option Agreement. Upon the Commencement of Commercial Production (as that term is defined in the Option Agreement) from the Gold Rush Project, South Shore will also be granted a 0.5% net smelter return royalty on the Gold Rush Project. In addition, the Gold Rush North Project and the Gold Rush South Project are each subject to a 2% net smelter return royalty Upon the Commencement of Commercial Production, which may be reduced by 1% by paying the respective royalty holder $1,000,000.