Nortec Ventures Kingurutik
River property agreement
2008-06-26 20:17 ET
- Property Agreement
The TSX Venture Exchange
has accepted for filing an option agreement dated March 31, 2008, between Nortec Ventures Corp. and Vulcan Minerals Inc., a TSX
Venture Exchange-listed company, whereby the company may acquire an initial
51-per-cent interest in the Kingurutik River property
located in northern Labrador.
Total consideration for the
initial option consists of $200,000 in cash payments, three million shares of
the company and $1.5-million in work expenditures as in the table.
Cash Shares Work expenditures
Exchange approval $10,000 200,000 $0
By March 31, 2009 $30,000 200,000 $50,000
By March 31, 2010 $30,000 400,000 $200,000
By March 31, 2011 $50,000 1,000,000 $400,000
By March 31, 2012 $80,000 1,200,000 $850,000
The company may acquire the
remaining 49-per-cent interest in the Kingurutik
River property by fully exercising its initial option and issuing the greater
of nine million additional shares, or an amount of shares, when added to the
three million previously issued shares, would equal 19.9 per cent of the
company's fully diluted share capital (including the additional shares to be
issued to exercise the second option) at the time of exercise of the option
attributable to the value of the property in relation to the company's total
value. The proposed issuance of these additional shares is subject to an
additional filing and prior exchange approval.
In addition to the above,
there is a 10-per-cent net profit interest convertible into a 2-per-cent net
smelter return royalty relating to the acquisition.