Toronto, Ontario – July 12, 2021 – The TSX Venture Exchange has accepted for filing documentation a definitive purchase agreement dated June 24, 2021, between the company and the registered owners of the Chapel Island gold property. The property consist of 54 mining claims situated in the province of Newfoundland. Pursuant to the terms of the agreement, the company will acquire a 100-per-cent undivided interest in the property in return for providing the vendors with aggregate cash payments of $250,000, issuing 10 million common shares and two million common share purchase warrants, and further committing to $100,000 in work commitment on the property as per the scheduled terms. Each warrant will be exercisable for one common share of the company at an exercise price of 12 cents for a period of 18 months.
Upon achieving an indicated resource exceeding 500,000 ounces of gold in accordance with National Policy 41-101, the vendors will also receive a $1-million additional payment. The property will be subject to a 2-per-cent net smelter return royalty to the vendors, of which 1 per cent will be available to repurchase for $1-million by the company along with an additional payment of $25,000 to be advanced for royalty payment on the fifth anniversary of signing.
On behalf of King Global Ventures