Great Atlantic Resources enters into an Option Agreement with Fort St. James Nickel

Great Atlantic Resources (TSXV.GR) (the “Company” or “Great Atlantic”) is pleased to announce that it has signed an option agreement (the “Agreement”) with Fort St. James Nickel (TSX-V: FTJ.H) (“FTJ” or the “Company”), under which FTJ may acquire 100% of GR’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 an immediate $15,000 cash payment and 500,000 share payment of common shares in the capital of FTJ to GR within five (5) days of the TSXV approval of the Transaction followed by $135,000 in cash payments over four years and $425,000 in common shares over corresponding four-year period.
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.
GR 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 GR with 1.0%.

The Transaction is subject to, among other things, the completion of a National Instrument 43-101 technical report on the Property, and obtaining all necessary regulatory approvals, including the TSXV.
Click here to read the full text release.