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Torch River Resources Ltd. (TSXV:TCR,FWB:WNF) signed an arm’s length definitive agreement with Hal Tan Graphite (Pvt) Ltd. to acquire 113 mining grids in south-west Sri Lanka.
The mining grids, mines and exploration licenses are held indirectly through a wholly-owned subsidiary of Hal which will be acquired, in whole, by Torch. In many cases Hal believes the veins associated with these operations may remain open 10-15m below the surface of the pits offering potential for near term production.
As consideration for the transaction, the Company shall pay $300,000 CDN of which $100,000 CDN will be paid as a non-refundable deposit paid to Ha1 on December 15th, 2013 and the balance of $200,000 CDN shall be paid upon closing together with the issuance of 5,000,000 common shares of Torch to Hal. Such common shares are contemplated to be issued at a deemed value of $500,000. Subject to certain customary conditions including receipt of all regulatory approvals, closing is anticipated to occur on or before January 31st, 2014. As additional consideration, upon commencement of full production, meaning that 4 veins/mines from the HTG Mining Grids will have operated for 3 continuous months at a production rate of three hundred metric tonnes per vein/mine per month, the Company will make a final payment to Hal consisting of cash in the amount of $750,000 CDN and 7,500,000 shares.
Click here to read the Torch River Resources Ltd. (TSXV:TCR,FWB:WNF) press release