York Harbour agreement for Bottom Brook property

Feb 3, 2023

2023-02-02 20:27 ET – Property Agreement

The TSX Venture Exchange has accepted for filing the letter agreement dated Dec. 16, 2022, between the company and an arm’s-length company (the vendor) and the vendor’s shareholders. Pursuant to the terms of the agreement, the company will acquire all of the issued and outstanding shares of the vendor and the REE (rare earth elements) mineral property in western Newfoundland, Canada, known as the Bottom Brook property, from the vendor group.

As consideration for the acquisition, the company has paid to the vendor group a $100,000 cash deposit to be used for licence fees to keep the property in good standing. The company has also issued to the vendor group on a pro rata basis an aggregate of 5,081,293 common shares in the capital of the company at a deemed price of 49.2 cents per share. Upon closing of the transaction, the vendor is the 100-per-cent holder of the property and a wholly owned subsidiary of the company.

The property is subject to a 3-per-cent net smelter return (NSR) royalty, payable to the vendor group. The company retains the right to buy back 2 per cent of the NSR royalty for an aggregate cash payment of $1.5-million.

Insider/pro group participation: none

Finders’ fees: none

This acquisition is considered an arm’-length transaction.

For further information, please refer to the company’s news releases dated Dec. 21, 2022, and Jan. 31, 2023.

https://yorkharbourmetals.com/