Cadillac signs Thierry earn-in option agreement
2019-12-09 15:13 MT - News Release
Mr. Norman Brewster reports
CADILLAC VENTURES SIGNS EARN-IN OPTION AGREEMENT
Cadillac Ventures Inc. has signed an earn-in option agreement with Northern Fox Resources Inc. The agreement relates to Cadillac's 100-per-cent interest in the Thierry mine property, located in the Pickle Lake area of Ontario.
The terms of the agreement are as follows:
Within 90 days (by March 9, 2020), Northern Fox will pay a previously agreed upon $300,000 to Cadillac ($75,000 of which has been advanced), following the financing of Northern Fox, to have the right to earn a 51-per-cent interest in the property;Northern Fox will issue 10 million Northern Fox shares to Cadillac, subject to regulatory approvals, within 60 days following the Northern Fox financing;Northern Fox will issue to Cadillac a $1.25-million note secured by a first charge against Northern Fox's interest in the property.
The note will then be retired proportionately to work expenditures on the property as follows:
30 per cent ($375,000) to be retired on the completion, within 12 months of the Northern Fox financing closing date of the $1.25-million work program appended to the agreement;40 per cent ($500,000) to be retired on the delivery of a feasibility study by Northern Fox to Cadillac within 24 months of the Northern Fox financing closing date;30 per cent ($375,000) to be retired on the earlier of acceptance of an environmental study or 36 months from the Northern Fox financing closing date.
Should the above terms independently not be met, then the option shall be null and void.
On completion of the 51-per-cent earn-in, Northern Fox will have the option to earn a further 10-per-cent interest by spending a further $2-million over two years. After a 61-per-cent interest is earned by Northern Fox, a formal joint venture agreement will be drawn up between the Cadillac and Northern Fox.
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