- Vatic Ventures (VCV) has signed an option agreement with Commitment Capital to acquire the Sister’s Mountain claims in New Brunswick
- Commitment Capital previously signed an underlying option agreement for the right to acquire the property from Wayne Lockhart
- The new agreement allows Vatic Ventures to acquire the claims package by satisfying the underlying agreement.
- Vatic Ventures must issue 15 million of its shares, cover $1.78 million in property expenses, and pay $355,000 to Wayne Lockhart for its option
- Vatic Ventures (VCV) is unchanged, trading at $0.19 per share as of 3:12 p.m. EST
Vatic Ventures (VCV) has signed an option agreement with Commitment Capital to acquire the Sister’s Mountain claims in New Brunswick.
Back in December, Commitment Capital signed an underlying option agreement for the right to acquire the property from Wayne Lockhart. The new agreement allows Vatic Ventures to acquire the claims package by satisfying the underlying agreement.
Underlying option taken on by Vatic Ventures
To exercise the option, Vatic Ventures agreed to issue 15 million of its shares and make a cash payment of $355,000 to Wayne Lockhart. The shares and payments will be made in instalments over five years once certain anniversaries and approvals have been achieved.
Vatic Ventures will also cover certain expenses for the property. The expenses will be covered for up to $1.78 million and paid through several tranches over the same five-year period
Claims subject to royalties
Additionally, the property is subject to various net smelter returns royalties, which are collectively worth 3.00 per cent. Vatic Ventures can repurchase 1.00 per cent of the royalties by paying $1 million to one of the royalty holders.
According to Vatic Ventures, the Sister’s Mountain property has two primary targets, namely rare earth elements, nickel, and copper. Moreover, In 2005 the area was reported to have the highest metal values in soil samples within the entire survey area for all metals tested.
Vatic Ventures (VCV) is unchanged, trading at $0.19 per share as of 3:12 p.m. EST.