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ValOre Metals Signs Definitive Agreement to Acquire Pedra Branca

Mining News - Published on Thu, 18 Jul 2019

Image Source: ValOre Metals
ValOre Metals Corporation provided an update on the previously announced transaction whereby ValOre has agreed to acquire the Pedra Branca Project in northeastern Brazil from Jangada Mines PLC. The Pedra Branca Project is a Platinum Group Metals District covering a total area of 38,940 hectares that comprises 38 exploration licenses. ValOre has entered into a definitive share purchase agreement with Jangada Mines PLC and PBBM Holdings Ltd, a wholly-owned, British Columbia incorporated subsidiary of ValOre pursuant to which the Purchaser has agreed to purchase Jangadas interest in the the Brazilian holding company Pedra Branca Brasil Mineracao Ltd, which owns the Pedra Branca Project.

Material Terms of the Agreement

The Purchaser will acquire a 100% interest in the Company in exchange for the following consideration:

1. The issuance and allotment to Jangada of:

a. 22,000,000 common shares in the authorized share capital of ValOre on the date of closing of the Transaction
b. 3,000,000 common shares in the authorized share capital of ValOre the "Subsequent Shares" and together with the Initial Shares, the "Consideration Shares" in six equal tranches commencing on the date falling six months after Completion and ending on the date falling thirty-six months after Completion, subject to any adjustment as a result of certain specified liabilities

2. Cash payments to Jangada in the aggregate of CAD 3,000,000, as follows:

a. CAD 250,000, which has been paid to Jangada;
b. CAD 750,000 payable on Completion;
c. CAD 1,000,000 on, or before, 3 months after Completion
d. CAD 1,000,000 on, or before, 6 months after Completion.

All Consideration Shares will be subject to a statutory hold period expiring four months and a day from the date of issuance.

Source :

Posted By : Sanju Moirangthem on Thu, 18 Jul 2019
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