- MGX Minerals Inc. (XMG) acquires a 90 per cent interest in the Letain Nickel Project in B.C.
- The total payment will be spread throughout three years for a total of $1.13 million
- The property is already 50 per cent owned by the CEO of MGX Minerals
- The vendors of the project will retain a 10 per cent carried interest which may be bought out for $5 million
- MGX Minerals Inc. (XMG) is unchanged and is trading at $0.05 per share as of 11:33 am ET
MGX Minerals (XMG) has acquired a 90 per cent interest in the Letain Nickel Project in B.C. for $1.13 million.
Payment terms are as follows:
- $50,000 within 30 days (the closing date)
- $100,000 within 180 days
- $250,000 within 18 months
- $350,000 within 3 years
In addition, work commitments will include $30,000 within the first year, $100,000 within the second year, and $250,000 within the third year
The property is 50 per cent owned by the CEO of MGX Minerals, Andris Kikauka and is a non-arm’s length transaction. It is reviewable for the purpose of valuation.
The company will provide further updates on regulatory approval of valuation but believes the price paid is fair and reasonable. The further 50 per cent is owned by John Bakus of Kamloops, BC. These two parties currently own 100 per cent of the Letain Nickel Project
The vendors of the project will retain a 10 per cent carried interest which may be bought out for $5 million. A 2.00 per cent net smelter return will remain with the vendors, half of which can be acquired for $1 million.
MGX Minerals Inc. (XMG) is unchanged and is trading at $0.05 per share as of 11:33 am ET.