The Conversation (0)
Lakeside Minerals (TSXV:LAK) announced that it has entered an amended agreement to acquire a 100 percent interest in the Misery Lake scandium project in Northern Quebec. Lakeside will now issue 21 million common shares to the vendor of the property, vs and earlier agreement for 13.5 million.
Lakeside Minerals (TSXV:LAK) announced that it has entered an amended agreement to acquire a 100 percent interest in the Misery Lake scandium project in Northern Quebec. Lakeside will now issue 21 million common shares to the vendor of the property, vs and earlier agreement for 13.5 million.
As quoted in the press release:
The change is due to feedback received by the Company during its marketing efforts, based upon which the Company concluded it would likely not be able to complete the transaction on the original financing terms upon which the transaction was contingent, and it would likely be necessary to adjust the terms and structure of its financing, affecting the relative ownership of the Vendor in the Company going forward. The Company’s board concluded it was in the best interests of the Company to revise the terms of the transaction to better position the company to complete it.
The Misery Lake Project is also subject to a 2% Net Smelter Royalty, held by a previous owner of the Misery Lake Project, which can be repurchased by Lakeside at any time for $2,000,000 in cash. Closing of the acquisition is will be subject to the Company closing an offering (the “Offering”) for minimum gross proceeds of $300,000, within 120 days of the date of the Amending Agreement and obtaining of all necessary regulatory approvals including shareholder approval, if required.
The acquisition of the Misery Lake Project is considered a related party transaction and subject to the requirements of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101″). The Company is relying on exemptions set out in MI 61-101 from the formal valuation requirements. Pursuant to MI 61-101 and TSX Venture Exchange policy, disinterested shareholder approval will be required to complete the transaction.
The Misery Lake Project is located in Northern Québec, 200km earth-northeast of Schefferville, and is comprised of 170 mineral claims covering an area of 8,334 ha. The Misery Lake Project was previously explored by Quest Rare Minerals Ltd. Misery Lake is a large scandium (Sc) and rare earth bearing alkali igneous intrusive complex with numerous untested targets, previously explored by Quest Rare Minerals Ltd. As a part of its exploration plan, the Company will focus on the Boulder Zone, which is related to an E-W magnetic anomaly at the end of a 13-km Sc-mineralized boulder train. Boulder Zone shows minimum 220 m hole-to-hole continuity bearing high grades of scandium and rare earths.
Click here to read the Lakeside Minerals (TSXV:LAK) press release
