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PJX Resources Inc. (TSXV:PJX) entered into a Purchase and Sale Agreement with SG Spirit Gold Inc. to acquire a 100% interest in properties located in Cranbrook, British Columbia, that were initially under option to PJX.
As quoted in the press release:
The initial option agreement [the “Option Agreement”] with SG, dated September 14, 2010, allowed PJX to earn up to an 80% interest in the properties by spending $2.5 million in exploration work and paying $215,000 in cash payments over 4 years. Under the Agreement, PJX will have full ownership with no NSR or other retained interest by SG, and PJX will not have to complete approximately $750,000 in remaining work commitments. The Agreement requires PJX to make the remaining cash payments of $125,000 that would have had to be made under the Option Agreement, and issue 500,000 PJX shares (the “Shares”) to SG that were not in the Option Agreement. SG has agreed to not sell the Shares for a period of 2 years from the closing date of the agreement and vote with PJX Management and Board during this period. If, at any time after 2 years, SG wishes to assign, sell or transfer the Shares, SG must notify PJX and PJX will have the opportunity to arrange for the sale of the Shares on terms not less favourable to SG than the terms contained in the notice provided by SG.
PJX Resources President, John Keating, said:
This is a great opportunity and important milestone for PJX. With a 100% ownership of the Properties, PJX will be able to realize the full upside potential of the many gold and base metal showings and targets on the Properties.
Click here to read the PJX Resources Inc. (TSXV:PJX) press release
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