Cartier Signs Letter of Agreement with SOQUEM to Own 100% of the Fenton Property
VAL-D’OR, Quebec, Feb. 23, 2021 (GLOBE NEWSWIRE) -- Cartier Resources Inc. (TSX-V: ECR) (“Cartier” or the “Company”) announces the execution of a binding letter of
agreement with SOQUEM Inc. (“SOQUEM”) for the acquisition by Cartier of all the rights and interests of SOQUEM (i.e. 50%) in a group of 14 mining claims located 50 km southwest of
Chapais. These claims are currently held under a 50-50 joint venture. The acquisition is made for a purchase price of $700,000 payable as follows: (a) an amount of $300,000 in cash and (b) an
amount of $400,000 represented by the issuance of common shares of Cartier at a price per share equal to the volume weighted average price (VWAP) for a period of five (5) trading days prior to the
closing date of the transaction.
In addition, SOQUEM will transfer to Cartier all of its rights and interests in a group of five (5) contiguous claims, which will allow Cartier to hold 100% of an expanded property consisting of 18 mining claims (the “Fenton Property”). Cartier will grant SOQUEM a 1% net smelter return (NSR) royalty on the Fenton Property, which can be bought back at any time by Cartier for an amount of $1,000,000 (the “Fenton Royalty”). Cartier will have a right of first refusal with respect to any future disposition to a third party by SOQUEM of the Fenton Royalty, subject to certain exceptions. In addition, as part of this transaction, Cartier has agreed to transfer to SOQUEM all of its rights and interests in a group of 39 claims comprising the Cadillac Extension Property. SOQUEM will grant Cartier a 1% NSR royalty on the Cadillac Extension Property, which may be bought back at any time by SOQUEM for a consideration of $1,000,000.
The closing of the transaction will be subject to various conditions, including the receipt by Cartier of the required approvals from the TSX Venture Exchange and the execution of a definitive agreement.
Highlights of the Fenton Property:
- The Fenton Property hosts the Fenton gold deposit.
- This mineralization has all the typical characteristics sought by Cartier, as at the Chimo Mine and Benoist Projects that could rapidly outline high-tonnage
- The Fenton Property, which is easily accessible via forestry road, is located near the mills of the Langlois and Bachelor mines and the future mill of Osisko
Mining’s Windfall Project.
SOQUEM, a subsidiary of Investissement Québec, is dedicated to promoting the exploration, discovery and development of mining properties in Quebec. SOQUEM also contributes to maintaining strong local economies. A proud partner and ambassador for the development of Quebec’s mineral wealth, SOQUEM relies on innovation, research and strategic minerals to be well-positioned for the future.