Sudbury, Ontario, March 7, 2022 (GLOBE NEWSWIRE) — Manitou Gold Inc. (TSX-V: MTU) (“society” Also “Manito“) Notices that we have entered into a binding contract (“”agreement) Sell a 100% stake in Dryden’s real estate in northwestern Ontario (“property“) Dryden Gold Corp. (“Dryden Gold“). Dryden Gold is a privately held company managed by the founders and management of Erie Gold Royalties Inc., a public company sold to Gold Loyalty Corporation for approximately $ 300 million in 2021.
- Manito will sell a 100% stake in Dryden’s assets, including Ken West and Gaffney, to Dryden Gold for $ 7,000,000.
- Manito will receive 4,000,000 common shares of Dryden Gold.
- Manito holds a 1% pure smelter royalties.When
- Dryden Gold will fund a total of $ 1,400,000 in exploration spending over a three-year period.
“Dryden Gold Corp. will lead the exploration of the Dryden property. Manito will become a key owner of Dryden Gold and will pursue an initial public offering later this year. After that, Manito will be a major owner of Dryden Gold. We retain insider ownership, “said Richard Murphy, President and Chief Executive Officer of Manito. “We strongly believe in the potential of Dryden’s real estate and will participate in future exploration of these real estate through our large stake in Dryden Gold and the royalties of our net smelters. looking forward to it.”
Under the terms of the Options Agreement, Dryden Gold shall issue 4,000,000 shares of Dryden Gold’s common stock to Manito with the approval of all applicable regulatory agencies (“”effective date”), Pay Manitou a total of C $ 7,000,000 as follows:
- Cdn $ 1,000,000 paid on the effective date (of which $ 100,000 will be paid to the company as a deposit, of which $ 50,000 is non-refundable).
- Pay 50% cash and 50% stock on the 1st anniversary of the effective date.
- On the second anniversary of the effective date, pay $ 2,000,000 for 50% cash and 50% shares.When
- On the third anniversary of the effective date, you will be required to pay $ 2,000,000 for 50% cash and 50% shares.
Upon completion of all cash payments, all issuance of shares, and all work commitments, Dryden Gold will have a 100% stake in the property subject to Manito’s 1% net smelter revenue royalties. Confirm (one-except for Ken West’s assets, half of which can be purchased for $ 1,000,000 in cash.
All share issuances, with the exception of the first share issuance on the effective date, are subject to the completion of the initial public offering by Dryden Gold, with a volume-weighted average price (“”.VWAP”) Dryden Gold shares on major stock exchanges traded during the 20 trading days immediately preceding each payment date. If the initial public offering of Dryden Gold is not completed by the respective payment date, all amounts shall be paid in full in cash.
In addition to the above, Dryden Gold must complete a minimum survey of properties totaling $ 1,400,000 in three years. Among them, Dryden Gold is committed to completing $ 600,000 one year before the effective date.
The agreement is subject to a variety of termination conditions, including but not limited to the completion of due diligence reviews by Dryden Gold and the receipt of all applicable approvals of the TSX Venture Exchange.
For more information about Manitou Gold Inc., please contact:
Richard Murphy, CEO
Phone: 1 (705) 698-1962
Neither the TSX Venture Exchange nor its regulatory service provider (the term is defined in the TSX Venture Exchange Policy) is responsible for the validity or accuracy of this release.
Forward-Looking Statements – The specific information contained in this news release includes substantive known and unknown risks and uncertainties, including regulatory risks associated with receiving final approval of the TSX Venture Exchange offering. May contain forward-looking statements, including. These forward-looking statements are subject to many risks and uncertainties. Some of them are beyond the control of Manito, including the future of the assets of Stover and Lenaby-Easy Lake. The reader believes that the assumptions used to create such information are reasonable at the time of creation, but may turn out to be inaccurate, so the forward-looking statement is overkill. Keep in mind that trust should not be placed.
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Manito Gold has announced that it has agreed to sell its 100% stake in Dryden Property, Canadian Business Journal.
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