The Conversation (0)
Wildsky Resources Inc. (TSXV: WSK,OTC:HWTHF) (the "Company") hereby announces that it has entered into a non-binding memorandum of understanding (the "MOU") with respect to an option (the "Option") to acquire a gold and base metal property located in Zimbabwe from Midau Mining (Private) Limited and Krumlin Mining (Private) Limited (collectively, the "Optionors").
Pursuant to the terms of the Option, the Company may acquire a 100% interest in two Exclusive Prospecting Orders (an "EPO") 1725 and 1622, and claims inside owned by the Optionors (the "Property"). The two EPO's cover the most important gold mineralization belt in Zimbabwe, Munyathi and Lily shear zone, the total covered area is 484.14 square kilometers. The proposed transaction is subject to, among other terms, the parties entering into a formal option agreement and the approval of the TSX Venture Exchange (the "Exchange").
In order to exercise the Option, the Company must undertake the following cash payments and exploration on the Property:
- Pay the Optionors USD $100,000 in cash on signing of the Option Agreement;
- Twelve months after the date ("Bulletin Date") of the Final Exchange Bulletin for the acquisition of the Option, pay the Optionors a further USD$50,000 in cash and issue to the Optionors that number of common shares in the capital of WSK equal to a value of USD $100,000; and
- Within Twenty-four (24) months after the Bulletin Date, issue to the Optionors that number of common shares in the capital of WSK equal to a value of USD $200,000, and spend not less than USD $2,000,000 in exploration expenses on the Property.
The Property shall be subject to a 5% net smelter royalty (the "NSR") in favor of the Optionors, and the NSR shall be payable on all minerals produced from the Property by or for the benefit of the Company up to a cap of USD$10,000,000.
Subject to the approval of the Exchange, in the event that the Company attains production or reserves of 1Moz AU on the Property, the Company shall issue 200,000 common shares in the capital of the Company to the Optionors. And, in the event that the Company attains production or reserves in excess of 2Moz AU on the Property, the Company shall issue a further 200,000 common shares in the capital of the Company to the Optionors.
If, at any time after earning its 100% interest in and to the Property, the Company decides to sell part or all of the Property, the Company shall grant the Optionors a right of first refusal to purchase that part of the Property that the Company intends to sell on the same terms and conditions as applicable to the proposed sale.
The parties to the proposed transaction are at arms' length. No finder's fee is payable in connection with the proposed transaction.
About Wildsky Resources Inc.
Wildsky Resources Inc. is a Canadian based exploration and development company with an office located in Vancouver, B.C. The Company's goal is to create value for shareholders through continuously exploring and developing its current properties in Nigeria, and at the same time looking for new properties to acquire through its international connections.
For more information on Wildsky Resources, please contact the Company at (778) 889-4966, or visit the Company's website at www.wildskyresources.com.
ON BEHALF OF THE BOARD OF DIRECTORS
signed by "Wenhong Jin"
Wenhong Jin
President and CEO
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy of accuracy of this release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/289556
