Constantine acquisition of Arizona lode claims rights

Jul 25, 2021

2021-07-23 17:20 ET – Property Agreement

The TSX Venture Exchange has accepted for expedited filing a letter agreement dated May 11, 2021, and an amendment to letter agreement dated July 15, 2021, between Merrill Palmer (the lessor) and Constantine Metal Resources Ltd. whereby the company is being granted the exclusive right to acquire from the lessor a 100-per-cent right, title, and interest in and to 106 federal lode claims located near Bouse, Ariz., United States.

Under the terms of the agreements, the company will make staged lease payments aggregating to $500,000 (U.S.) in cash, staged cash payments aggregating to $3,495,000 (U.S.) and either issue an aggregate of 2.5 million common shares of the company or alternatively, make cash payments totalling to $1,325,000 in lieu of issuing shares on or before the payment dates as shown in the attached table.

The exchange has approved the issuance of 500,000 common shares, at a deemed price of 25 U.S. cents per common share, representing July 1, 2021’s, consideration. The deemed price per share is subject to a minimum floor price of 15 U.S. cents per common share, being the discounted market price. Any subsequent share issuances are subject to separate exchange approval at the time it becomes payable and a floor price of 15 U.S. cents per common share, being the discounted market price.

Additional claims acquired by the company or the lessor from a third party within the defined area of interest, the lessor shall be entitled to a 1-per-cent NSR (net smelter return) on those third party claims. The company can purchase up to 0.5 per cent of the NSR for $1-million (U.S.) (the buy-down right). Any issuance of shares relating to the buy-down right is subject to prior written approval of the exchange at the time it becomes payable.

For further information, refer to the company’s news releases dated May 13, 2021.

https://www.constantinemetals.com/