Torrent Gold has signed an agreement to acquire the Sunrise Tungsten Project, a group of 19 unpatented lode mining claims located in Hidalgo County, New Mexico.
The deal, set out in a membership interest purchase agreement, involves Torrent Gold purchasing the claims from Lamina Minerals and Belle Morgan.
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Under the terms of the agreement, Torrent Gold will pay cash consideration of C$100,000 ($70,749.7) and issue 3,500,000 common shares to the vendors.
In addition, the vendors will be granted a 1.5% net smelter returns royalty (NSR) on commercial production from the project.
Torrent Gold will retain the right to buy back 0.75% of this royalty for a one-time cash payment of $1,000,000 at any point within ten years of the transaction’s close.
No finders’ fees or commissions will be paid in connection with the agreement.
The issued shares will be subject to a statutory hold period of four months and one day following their issue, in line with Canadian securities regulations, with possible additional restrictions under foreign laws.
The acquisition is expected to qualify as a “major acquisition” under the rules of the Canadian Securities Exchange, as it is anticipated to represent the majority of Torrent Gold’s operating assets for the 12 months after completion.
Finalisation of the transaction is contingent upon approval by the exchange.
The agreement is not expected to lead to a change of control at Torrent Gold, and no changes to the company’s board or management are anticipated as a result of the purchase.
Torrent Gold is a mineral and natural resources exploration firm that draws on extensive experience in both mining and capital markets to pursue acquisitions and exploration activities throughout resource commodity cycles.
