District Executes Agreement to Sell 80% of the Bakar Property on Northern Vancouver Island, British Columbia
VANCOUVER, BC, Aug. 18, 2020 - District Metals Corp. (TSXV: DMX) (FRA: DFPP); ("District" or the "Company") is pleased to announce the execution of a definitive purchase agreement (the "Agreement") dated August 17, 2020 for District's high grade copper-silver Bakar Property ("Bakar" or the "Property") located on northern Vancouver Island in British Columbia with Sherpa II Holdings Corp. ("Sherpa II") (TSX-V: SHRP.P).
Under the Agreement Sherpa II will acquire an 80% interest in the Bakar Property by cash payment, the issuance of shares to District, and work expenditures, as described below. The cash payment and common shares of Sherpa II will be transferred to District upon closing of the transaction on or before September 17, 2020, and the work expenditures are scheduled to be completed within six months from the closing.
$50,000 cash payment.
1,000,000 common shares of Sherpa II.
$200,000 in work expenditures.
Carry over of the 2.0% NSR from the royalty agreement dated July 12, 2019 between District and Longford Capital Corp. on one of the eight mineral claims that comprises Bakar, which covers 1,352 hectares (ha) out of the 15,687 ha Property. The 2.0% NSR may be repurchased entirely for $6.5M.
Overview of the Bakar Property
- Category: Base Metals
- Published: 18 August 2020
- Written by Editor