Canada's Torrent Gold Signs Agreement to Acquire 19 Tungsten Mining Claims in the United States

en.Wedoany.com Reported - On November 6, Canadian mineral exploration company Torrent Gold signed a purchase of rights agreement with Lamina Minerals LLC and Belle Morgan Ltd. to acquire 19 unpatented hard rock mining claims located in Hidalgo County, New Mexico, USA, relating to the Sunrise tungsten project. Under the agreement, the acquisition consideration consists of CAD 100,000 in cash, 3.5 million common shares, and a 1.5% net smelter return royalty on future commercial production from the project. The transaction remains subject to approval by the Canadian Securities Exchange.

According to the agreement announced by the company, Torrent Gold will pay the sellers CAD 100,000 in cash and issue 3.5 million common shares. Upon completion of the transaction, the sellers will receive a 1.5% net smelter return royalty on future commercial production from the project. Torrent Gold has the right, within 10 years after closing, to buy back 0.75 percentage points of the royalty interest for a one-time payment of USD 1 million.

The 3.5 million consideration shares issued will be subject to a statutory hold period of four months and one day from the date of issuance, as well as other restrictions under applicable securities laws. The company and the two sellers are at arm's length, and the transaction does not involve any finder's fee or commission.

Under the rules of the Canadian Securities Exchange, the acquisition is classified as a significant asset acquisition because the target project is expected to constitute Torrent Gold's principal operating asset within 12 months after closing. Completion of the transaction is subject to exchange approval. The company expects that the acquisition will not trigger a change of control or result in any change to the existing board of directors or management.