- Constantine Metal Resources Ltd. (CEM) signs a binding letter of agreement to acquire the Yuma King Property consisting of 295 federal mining claims
- Constantine retains the right to a 50 per cent interest in any agreement on the additional 200 claims (the Graphite Property)
- Constantine has the option to purchase the property for US$3 million
- Constantine will have the right to explore the Graphite Property, until a third-party agreement is completed
- Constantine Metal Resources Ltd. (CEM) is down 1.05 per cent trading at $0.47 per share as of 3:58 p.m. EST
Constantine Metal Resources (CEM) has signed an agreement to acquire the Yuma King Property consisting of 295 federal mining claims.
The property represents a portion of the total Yuma King property. Constantine retains the right to a 50 per cent interest in any agreement on the remaining 200 claim portion of the property.
The purchase and option right given to Constantine applies to the 152 claims currently selected by the company and includes the right for it to select an additional 143 claims from the gold potential area of the property.
The additional 143 claims will be selected at a future date and by mutual agreement with the lessor.
Once Constantine has completed its final selection of the 295 claims, then the remaining 200 claim portion of the Yuma King Property will be the Graphite Property.
Constantine has five years to evaluate and purchase the property. It has the option to purchase the property for US$3 million unless any prior paid optional cash payments are made.
Alternatively, Constantine may pay US$2.85 million and issue up to 1.25 million shares in stages over the term. The company has the right to pay all or a portion of the share payments by paying cash in lieu.
The agreement contains no royalty payments or work commitments, but there is a one per cent net smelter return royalty on six claims that include the Yuma Mine payable to the previous mine owner.
Constantine will have the right to explore the Graphite Property until a third-party agreement is negotiated and completed.
Constantine will also have the right of first refusal on any portions of the Graphite Property that are identified with gold and base metal potential.
Constantine in return will give the third party that acquires the Graphite Property a right of refusal on areas that are identified with high potential for graphite-graphene on the property.
Constantine Metal Resources Ltd. (CEM) is down 1.05 per cent trading at $0.47 per share as of 3:58 p.m. EST.