Great Atlantic Resources (TSXV:GR) (the “Company” or “Great Atlantic”) is pleased to announce that it entered into an option agreement (the “Agreement”) with Fort St. James Nickel (“FTJ”) pursuant to which FTJ may acquire 100% of the Company’s Porcupine property (the “Property”) located in New Brunswick (the “Transaction”).
Under the Agreement, FTJ may earn-in a 100% interest in the Property by making certain staged cash payments and share payments of common shares in the capital of FTJ to Great Atlantic over a four year period as follows:
(i) $15,000 in cash and 500,000 common shares within five (5) days of the TSX Venture Exchange approval of the Transaction (the “Approval Date”);
(ii) $20,000 in cash and $75,000 in common shares on or before the first anniversary of the Approval Date;
(iii) $20,000 in cash and $75,000 in common shares on or before the second anniversary of the Approval Date;
(iv) $20,000 in cash and $75,000 in common shares on or before the third anniversary of the Approval Date; and
(v) $75,000 in cash and $200,000 in common shares on or before the fourth anniversary of the Approval Date. FTJ will also be required to spend $1,000,000 in exploration expenditures on the Property over a four (4) year period with a minimum of $150,000 each year.
Great Atlantic will retain a 2.0% new smelter return royalty (the “NSR Royalty”) which FTJ may buy down one-half (50%) of the NSR Royalty by paying $1,000,000, leaving Great Atlantic with 1.0%.