- York Harbour Metals Inc. (YORK) has signed a $2.5 million agreement to acquire the Bottom Brook mineral property in Newfoundland
- The company will pay a $100,000 cash deposit to be used for license fees
- The total purchase price will be met by issuing York Harbour shares
- The property is made up of 541 mineral claims held under 14 mineral licenses over 13,025 hectares and is indirectly owned by Newbay Mining Corp.
- Newbay will amalgamate with its subsidiary that owns the property, which will then be acquired by York Harbour
- York Harbour Metals Inc. (YORK) is down 10.00 per cent, trading at $0.54 per share as of 1:26 p.m. EST
York Harbour Metals (YORK) has agreed to acquire a rare earth elements (REE) mineral property in Newfoundland known as the Bottom Brook Property.
The company will pay a $100,000 cash deposit to be used for license fees. The purchase price of $2.5 million will be met by issuing common shares of York at a price to be determined.
The property is made up of 541 mineral claims held under 14 mineral licenses over 13,025 hectares and is indirectly owned by Newbay Mining Corp. through its subsidiary, 2802903 Ontario Limited.
As a part of the purchase agreement, the shareholders of Newbay and its involved subsidiary agreed to continue the corporate existence of the subsidiary in British Columbia and then amalgamate with Newbay to form a private amalgamated company as the registered legal and beneficial title holder of the property.
The property is subject to a 3.00 per cent net smelter returns royalty payable to the Newbay shareholders.
Following the amalgamation, York Harbour will issue the shares to Newbay shareholders on a tax-deferred rollover basis in exchange for all issued and outstanding shares in the capital of the amalgamated company, which will then become a wholly owned subsidiary of York Harbour.
York Harbour Metals Inc. (YORK) is down 10.00 per cent and is trading at $0.54 per share as of 1:26 p.m. EST.