Homestake Resource Corporation Announces Property Acquisition and Financing

 Homestake Resource Corporation (TSXV:HSR,FWB:B6I) entered into an option agreement with private optionors to acquire a 100% interest in the FH property. The Company also entered into a share exchange agreement with Global Resources Investments Ltd., an arm’s length party to Homestake, who will re-register as a public company and be constituted as an investment trust with the name Global Resources Investment Trust Plc (GRIT). Pursuant to the share exchange agreement, GRIT will issue and deliver 347,329 shares to the Company at a price of £1.00 per share in exchange for the issuance of 8,000,000 units of Homestake at a deemed price of £0.0434 per unit.

As quoted in the press release:

FH Property Acquisition
Homestake has entered into an option agreement with private optionors to acquire a 100% interest in the FH property in consideration for making payments of $100,000 over a five year period and issuing 250,000 common shares in the capital of the Company over a three year period. The optionors retain a 2% net smelter return royalty with respect to the FH property and Homestake may purchase up to half of such royalty from the optionors at any time for $1,000,000. The option agreement is subject to TSX Venture Exchange acceptance.

Click here to read the Homestake Resource Corporation (TSXV:HSR,FWB:B6I) press release

Click here to see the Homestake Resource Corporation (TSXV:HSR,FWB:B6I) profile