The Conversation (0)
Graphite One Resources Inc. (TSXV:GPH,OTCQX:GPHOF) and wholly owned subsidiary, Graphite One (Alaska) Inc. (G1 Alaska) signed a purchase and sale agreement with Ronald C. Sheardown for 28 Alaska state mining claims covering the same lands as the 28 Alaska state mining claims acquired by G1 Alaska in January 2012. Graphite One’s Graphite Creek Property now comprises 56 acquired state claims, 77 staked state claims and 24 leased federal claims.
As quoted in the press release:
Key terms of the Agreement include, the Company, or G1 Alaska, as appropriate, agreeing to:
1. pay to Sheardown US$50,000 upon completion of the Company’s next financing that raises a minimum amount of US$500,000;
2. issue to Sheardown 3 million common shares of the Company at an issue price of CA$0.10 per share, being the closing trading price of the Company’s common shares on the TSX Venture Exchange Inc. (the “TSXV”) on June 1, 2015, subject to approval by the TSXV, which shares will be subject to a four-month hold period from the date of issuance;
3. pay to Sheardown a royalty interest equal to 1% of the Net Smelter Returns received by G1 Alaska on G1 Alaska claims (the ”Royalty”) subject to the Company’s option to purchase the Royalty for US$500,000 at any time within 36 months following the start of mine production;
4. enter into an advisory board agreement with Mr. Sheardown to retain him on the Company’s advisory board for a term of 3 years; and
5. under the advisory board agreement, grant stock options to purchase a total of 1,000,000 common shares of the Company to Sheardown at an exercise price of CA$0.13 per share, which options shall vest immediately and expire 3 years from the date of grant, subject to the terms and conditions of the Company’s stock option plan.
Graphite One’s Graphite Creek Property now comprises 56 acquired state claims (the 28 state mining claims acquired by G1 Alaska in January 2012 plus the 28 overlapping state claims newly acquired by G1 Alaska from Sheardown, collectively the “Acquired Claims”), 77 staked state claims (staked by G1 Alaska in 2012) and 24 leased federal claims (the “Leased Claims” described in the Company’s May 28, 2015 news release).
Graphite One Resources CEO, Anthony Huston, said:
With this agreement, Graphite One (Alaska) now fully controls, free of any conflicting locations, the right to possess and extract 100% of its identified resource. The Company will also benefit from being able to draw on Ron Sheardown’s extensive experience in major development projects and he will be a great asset to our board and management.
Click here to read the Graphite One Resources Inc. (TSXV:GPH,OTCQX:GPHOF) press release
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