SASKATOON, SASKATCHEWAN–(Marketwired – June 9, 2017) –
THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES FOR DISSEMINATION IN THE UNITED STATES
GESPEG COPPER RESOURCES INC. (TSX VENTURE:GCR) (the “Company” or “Gespeg“) announces the signing of a 60 day binding letter of agreement (the “Agreement“) with DNA Canada Inc. The agreement is an option to acquire a 50% undivided interest (the “Option“) in the 65 mining claims and the mining lease all located in the Montauban and Chavigny townships, in the county of Portneuf, in the province of Québec (the “Property“) and ii) the buildings, immoveable and other assets described in Schedule B hereof and located on the Property (the “Assets“).
1. Terms of the Option
- The Option shall be exercisable by Gespeg in the following manner:
- Acquisition of a first 10% interest
Gespeg shall automatically acquire a 10% interest in the Property and Assets by doing the following:- deliver a compliant NI 43-101 report on all existing tailings on the Property, indicating at least inferred resources; and
- issue to DNA 3,000,000 common shares.
- Acquisition of a second 15% interest
Gespeg shall automatically acquire an additional 15% interest in the Property and Assets by doing the following:- obtain all the required permits from the various governmental authorities of the Province of Québec with respect to the Property and Assets; and
- issue to DNA 5,000,000 common shares.
- Acquisition of a final 25% interest
Gespeg shall automatically acquire an additional and final 25% interest in the Property and Assets by doing the following:- start production of the tailings;
- issue to DNA 10,000,000 common shares.
- Upon the obtaining by Gespeg of an interest in the Property and Assets, DNA shall execute and deliver to Gespeg a Mining Right Transfer Form evidencing such transfer of interest from DNA to Gespeg, in the required form, together with any other document necessary for such transfer, and Gespeg shall be responsible for paying any statutory or administrative fee or duty in relation to such transfer of mining rights and to the registration thereof.
- DNA also recognizes that all common shares issued to DNA shall be subject to a statutory hold period of 4 months and 1 day from the date of issuance.
- All operations during the Option period to gain 50% undivided interest shall be executed by Gespeg, which shall be the sole responsible of all payments, it being understood that all expenses related thereto shall be approved by a committee consisting of 2 representatives of Gespeg and 2 representatives of DNA (the “Committee”).
- DNA also specifically recognizes that Gespeg shall have the right, subject to prior approval by the Committee, to incur exploration expenditures on the 65 mining claims of the Property during the Option period, it being specifically understood that DNA shall reimburse to Gespeg 50% of such expenditures upon presentation of an invoice of Gespeg to that effect at the production stage.
- Once the Option shall have been exercised in full by Gespeg, the Parties shall execute a joint venture agreement (the “JV Agreement“) to govern their relationship.
- If the Option is exercised in full by Gespeg, Gespeg shall automatically have a right of first refusal concerning the sale by DNA of its remaining interest of 50% in the Property and Assets.
The completion of the transaction is subject a number of conditions, including, but not limited to, the approval of the TSX Venture Exchange and all other necessary approvals. Additional information on the transaction will be provided in a subsequent news release.
Bernard-Olivier Martel, P. Geo, Director of Exploration of the Company, is a qualified person (as such term is defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects) and has reviewed and approved the technical disclosure contained in this news release.
About Gespeg Copper Resources Inc.: Gespeg is an exploration company with a focus on copper, especially in a grossly underexplored region “Gaspé, Québec”. With a dedicated management team, the Company’s goal is to create shareholder wealth through the discovery of new deposits.
GESPEG COPPER RESOURCES INC.
(signed) “Sylvain Laberge“
FORWARD LOOKING INFORMATION
Some of the statements contained in this press release are forward-looking statements and information within the meaning of applicable securities laws. Forward-looking statements and information can be identified by the use of words such as “expects”, “intends”, “is expected”, “potential”, “suggests” or variations of such words or phrases, or statements that certain actions, events or results “may”, “could”, “should”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements and information are not historical facts and are subject to a number of risks and uncertainties beyond the Company’s control. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this news release. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements, except as may be required by law.
Neither TSX Venture Exchange nor its Regulations Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
President and CEO
514.380.5610
514.702.9841
Slaberge@gespegcopper.com