Xmet, Indians sign exploration deal for Blackflake
2014-01-24 09:26 ET - News Release
Shares issued 70,718,046
XME Close 2014-01-23 C$ 0.14
Mr. Alexander Stewart reports
XMET SIGNS EXPLORATION AGREEMENT WITH CONSTANCE LAKE FIRST NATION ON ITS BLACKFLAKE PROJECT
Xmet Inc. has signed an exploration agreement effective Jan. 23, 2014, with the Constance Lake First Nation, which will enable the exploration and development of Xmet's Blackflake project located northwest of Hearst, Ont.
The EA outlines the working relationship between Xmet and CLFN with respect to exploration activities within the CLFN's traditional territory, which includes all claims forming the Blackflake project. The EA remains in effect until such time as Xmet and the CLFN enter into an impact benefits agreement prior to the commencement of any mine development. The EA includes terms outlining Xmet's and CLFN's mutual respect for the land and a responsible and sustainable approach to exploring the land.
Alexander Stewart, Xmet's chairman and chief executive officer, stated: "We were very pleased with the EA and are appreciative of the support of Constance Lake's Chief Sackenay and the CLFN Council. Management and I look forward to continuing to work with the CLFN community as the Blackflake project progresses."
Xmet has also agreed to provide certain compensation to the CLFN community, subject to certain thresholds, and to provide for environmental protection, employment, business and training opportunities, and mitigation of impacts on the CFLN's traditional territory. In connection with the execution of the EA, Xmet will issue 200,000 common shares in the capital of Xmet upon, and subsequently issue 200,000 common share purchase warrants in each of the succeeding three years commencing one year from, execution of the EA at exercise prices equal to the closing market price prior to the issue date, with each such share purchase warrant exercisable for a period of two years from the date of issue. All securities issued in connection with the EA are subject to a hold period of four months and a day from the date of issuance.
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