Montego Resources (MY-Cse) Jan 17, '17 has entered into a letter of intent (LOI) with Cache Exploration Inc. whereby the company will acquire all of Montego's right, title, interest and obligations in and to the Kiyuk Lake property in Nunavut, Canada. The company and Cache have agreed to work in good faith to execute a definitive agreement.
The LOI is contingent on the company completing satisfactory due diligence, and both parties obtaining all necessary corporate and regulatory approvals. Cache shall have the right to earn a 100-per-cent interest in and to the property in consideration for cash payments of $500,000, as follows: (a) $200,000, on or before the date which is 45 calendar days from the date of execution of the LOI, (b) an additional $200,000 cash, on or before the date which is six months from the date of execution of the definitive agreement, and (c) an additional $100,000 cash, on or before the date which is 12 months from the date of execution of the definitive agreement.
Kiyuk Lake property is 491-square-kilometre property located in southern Nunavut, 400 kilometres north of Lynn Lake. Montego holds a 100-per-cent interest in the property, subject to a 2-per-cent net smelter return royalty to the original property vendor.
ON BEHALF OF THE BOARD OF MONTEGO RESOURCES INC.
“Kenneth Tollstam”
CEO and Director
montegoresources.ca |
