Champion files expedited claim acquisition application
2020-02-18 12:23 ET
Mr. Richard Kantor reports
Champion Bear Resources Ltd. has filed an expedited acquisition application with the TSX Venture Exchange in connection with the company's strategic option to purchase a 100-per-cent interest in certain mining claims in the Kenora area of Ontario. These claims, if acquired by the Company, would expand the number of claims in connection with its core Eagle Rock core property by approximately 15. This option was granted to the Company by an arm's length party (the "Optionor") in September of 2019 and pursuant to its terms the Company has provided the Optionor with a nonrefundable payment of $1,000 and has agreed to make an additional payments totaling an aggregate of $60,000 (inclusive of the initial $1,000 payment) over the course of the next three years and issue the Optionor 100,000 common shares of the Company. When these terms are met, the Company will have earned a 100% interest in these claims. As part of the agreement with this option, Champion Bear will pay a 1.5% net smelter royalty in the event the Company acquires the claims and commercial production begins on them and in such instance the Company has the right to buy back this royalty for $1 million. The Company intends to fund the option payments through a combination of working capital and additional funds anticipated to be raised in the future from an equity financing.
The Application (including the issuance of 100,000 Common Shares of the Company) is subject to the approval of the TSXV.