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Fancamp Exploration Ltd. (TSXV:FNC) has signed an Amendment Agreement with Bold Ventures Inc., extending the terms of the original Earn-In Option Agreement, permitting Bold to earn up to a 100% working interest in the Koper Lake Project. In the first additional option, Bold can earn a further 20% interest in the Property by paying Fancamp $15,000,000 payable in equal installments over 3 years. If the first option is exercised, Bold would then have the additional option to acquire from Fancamp the 20% carried interest in exchange for a Gross Metal Royalty. Execution of the additional option would result in Bold holding a 100% interest in the Koper Lake Project. The GMR would entitle Fancamp to be paid 2% of the total revenue from the sale of all metals and mineral products from the Property from the commencement of Commercial Production.
As quoted in the press release:
In the first additional option, Bold can earn a further 20% interest in the Property by paying Fancamp $15,000,000 payable in equal installments over 3 years with half of the amount payable in cash and the balance payable, at Bold’s option, through the issuance of common shares of Bold at the market price at the time the shares are issued. At that point, Fancamp would retain a 20% carried interest in the Koper Lake Project.
If the first option is exercised, Bold would then have the additional option to acquire from Fancamp the 20% carried interest in exchange for a Gross Metal Royalty (“GMR”) payable to Fancamp. Execution of the additional option would result in Bold holding a 100% interest in the Koper Lake Project. The GMR would entitle Fancamp to be paid 2% of the total revenue from the sale of all metals and mineral products from the Property from the commencement of Commercial Production. Once all of the capital costs to bring the Project to the production stage have been recovered, the GMR may be scaled up to a maximum of 4% of the total revenue from the sale of all metals and mineral products from the Property contingent upon the prices of products sold from the Property.
Fancamp President and CEO Jean Lafleur said:
This is an excellent deal for Fancamp and its shareholders. The sale is in line with Fancamp’s business model of identifying early-stage projects with excellent mineral potential; advancing them to the next decision stage with minimal exploration work; selling, optioning or joint venturing them to solid partners for cash and shares of the partnering companies and inheriting a significant royalty on future production. With the Bold Addendum Agreement, Fancamp has the potential of acquiring significant funds for the future. Since these funds are contingent upon future events, there is no guarantee that they will be received.
Click here to read the Fancamp Exploration Ltd. (TSXV:FNC) press release
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