CANADIAN MINING SIGNS FORMAL PURCHASE AGREEMENT WITH EXPLORACIONES SAN BERNARDO S.A. DE C.V.
Canadian Mining Company Inc.'s submission has been approved by the Exchange on March 31, 2008, -- submission No. 134649 -- the exchange accepted for filing documentation in connection with an option agreement dated Feb. 27, 2008, pursuant to which San Bernardo granted to Canmin, a wholly owned subsidiary of Canadian Mining, the option to acquire a 100-per-cent interest in the Raquel 3 mining concession located in Sonora, Mexico. The aggregate consideration was $75,000 cash, the issuance of 2.5 million common shares and work commitments of $1.25-million over a five-year period.
The parties have now agreed to convert the option agreement to an outright purchase agreement whereby San Bernardo will sell, transfer and assign absolutely to Canmin a 100-per-cent interest in the concession and 1 per cent of the 2-per-cent royalty over the concession also held by San Bernardo.
Consideration for the purchase is the issuance by Canadian Mining on behalf of Canmin, its subsidiary, of one million shares of its capital within five business days of the date that the purchase agreement is accepted for filing by the TSX Venture Exchange.
A term of the purchase agreement is that neither Canmin nor Canadian Mining shall have any further obligations to make cash payments, share issuances or incur work expenditures as contemplated in the option agreement. Additionally, San Bernardo is granted the buy-back option to repurchase the 1-per-cent net smelter return transferred to Canmin for a price of $6,000 exercisable within a period of six months from the date of the purchase agreement (Dec. 4, 2008).
The purchase agreement is subject to acceptance for filing by the TSX Venture Exchange.