Major Precious Metals Completes Skaergaard Acquisition
VANCOUVER, British Columbia, Nov. 27, 2020 (GLOBE NEWSWIRE) -- Major Precious Metals Corp. (“Major Precious Metals” or the “Company”) (CSE:SIZE | OTC:SIZYF |
FRANKFURT:3EZ) is pleased to announce that it has completed the acquisition of a one-hundred-percent interest in the Skaergaard Project (“Skaergaard”) located on the east coast of
Greenland (the “Acquisition”).
The Acquisition was completed pursuant to the terms of a definitive purchase agreement entered into with Platina Resources Ltd. (the “Vendor” or “Platina”). In consideration for the Acquisition, the Company was required to complete a one-time cash payment of $500,000 (the “Consideration Payment”), and issue 55,000,000 common shares (the “Consideration Shares”), to the Vendor. The Company previously deposited the Consideration Payment, and the Consideration Shares, in escrow pending receipt of approval for the fundamental change from the Canadian Securities Exchange (the “Exchange”) and the shareholders of the Company. Such approval has now been received, and the Consideration Payment and the Consideration Shares have been released to the Vendor. In addition, the two mineral exploration licences (MEL) that comprise the Skaergaard Project (MEL 2007/01 and 2012/25) have been transferred to Major Precious Metals.
The Consideration Shares are subject to a twenty-four-month time release pooling arrangement, during which time they may not be transferred, assigned, pledged or otherwise traded. The Consideration Shares will be released from the pooling arrangement in four equal tranches, with the first release after six months, and each subsequent release occurring every six months thereafter. The Consideration Shares are subject to accelerated release in connection with share price performance, changes in corporate structure or the distribution of the Consideration Shares to the shareholders of the Vendor. In addition to the pooling arrangement imposed by the terms of the Acquisition, the Consideration Shares are subject to a statutory hold period in accordance with applicable securities laws until February 28, 2021.
The Company is at arm's-length from the Vendor. Pursuant to the terms of the Acquisition, the Vendor is entitled to nominate one member of the board of directors of the Company. The Company anticipates that the Vendor will exercise this right and propose a nominee at a later date. In connection with completion of the Acquisition, the Company has issued 3,850,000 common shares (the “Finder’s Fee Shares”) to an arm’s-length third party that assisted in facilitating the Acquisition. The Finder’s Fee Shares are subject to four-month-and-one-day statutory hold period until March 17, 2020, in accordance with applicable securities laws.
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