Tearlach Resources agreement for Muscovite property

May 4, 2023

2023-05-03 19:42 ET – Property Agreement

The TSX Venture Exchange has accepted for filing documentation pertaining to a property option agreement dated Jan. 20, 2023, as amended on March 20, 2023, between the company and an arm’s-length party. Pursuant to the terms of the Option Agreement, the Optionor has granted an option to the Company to acquire a 100% undivided interest in the Muscovite Lithium Property, which consists of 84 claims covering approximately 4,368 hectares (the “Property”) in Quebec, Canada.

The Company paid to the Optionor $62,500 in cash and $62,500 in cash in lieu of 25,826 shares, on the Effective Date and on or before five days from the Effective Date, respectively. To exercise the Option, the Company will pay cash and issue shares (at a deemed floor price of $2.42 per share) to the Optionor in stages, as outlined below:

First anniversary, $62,500 cash and 25,826 shares; Second anniversary, $62,500 cash and 25,826 shares; Third anniversary, $62,500 cash and 25,826 shares.

The Company may elect to pay the cash equivalent value for any share issuance obligations under the Option Agreement.

According to the Option Agreement, the Company is obligated to pay a one-time bonus of $1,000,000 (the “Bonus”) to the Optionor if a 43-101 compliant mineral resource valued at over $100,000,000 is established on the Property. The Bonus can be satisfied by the Company through payment of cash or by issuing shares at the Company’s discretion. If the Company elects to issue shares for the Bonus, up to 413,223 shares will be issued at a deemed floor price of $2.42 per share.

The Optionor retains a 2% net smelter return (NSR) royalty on the Property. The Optionee has the irrevocable right to purchase 1.5% of the NSR royalty from the Optionor for $2,000,000 at any time after the option is exercised.

For further details, please refer to the Company’s news releases dated January 30, 2023, and April 20, 2023.

https://tearlach.ca/