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Acquires 100% interest in Costello property
Feb 20, 2009 05:31AM
VenCan Gold acquires 100% interest in Costello property
2008-11-25 16:27 ET - Property Agreement
The TSX Venture Exchange has accepted for filing documentation pertaining to a letter agreement dated Sept. 25, 2008, between VenCan Gold Corp. and eight arm's-length individuals (collectively, the vendors). Pursuant to the agreement, the company shall acquire a 100-per-cent interest in the Costello property. The property consists of nine mining claims, totally approximately 160 hectares in the Bristol township of the Porcupine mining division of Northern Ontario.
As consideration, the company must pay a total of $50,000 and issue a total of two million common shares and a total of one million warrants to the vendors. Each warrant is exercisable into one common share at a price of 15 cents for a two-year period. If certain events, as disclosed in the company's press release dated Nov. 5, 2008, occur within two years of the closing date, the company must issue an additional total of one million shares to the vendors. In addition, the vendors shall receive a 3-per-cent net smelter return on gold (NSR gold) and a 2-per-cent net smelter return on all other minerals (NSR minerals). The company has the right at any time to purchase 50 per cent of the NSR gold for an additional payment of $1.5-million and 50 per cent of the NSR minerals for an additional payment of $500,000.
For further information, please refer to the company's press release dated Oct. 7, 2008, and Nov. 5, 2008