GER:CC - Glen Eagle Resources Signs Agreement to Option 100% of Moose Lake Property
(TheNewswire)
Montreal, Quebec, CANADA – TheNewswire - June 20, 2022 – Glen Eagle Resources Inc. (the “ Corporation ”) (TSXV:GER) (OTC:GERFF) is pleased to announce that it has entered into an option agreement (the“ Agreement ”) with an unlisted reporting issuer (the “ Optionee ”), whichprovides the Optionee the right to acquire (the “ Option ”) a 100%interest in the Moose Lake Property (the “ Property ”) locatedin the Province of Quebec. The Property is subject to a 1% NSRinterest to an arm’s length third party. The NSR can be bought backfor a consideration of $1,000,000.
Jean Labrecque, President and CEO, commented: “Thecompany issued a news release on March 16, 2022 stating thatmanagement would look at every option to maximize shareholder’svalue relating to its Moose Lake phosphate asset near Chicoutimi,Quebec. With the current agreement, the Company has fulfilled itscommitment and we are very pleased with the transaction that ismutually satisfactory to both parties.”
Under the Agreement, the Optionee will acquire theinterest in the Property by paying the Corporation a total of$2,391,000 as follows: (i) $191,000 on June 17, 2022 (the“ Effective Date ”), (ii) $300,000 on or before July7, 2022, (iii) $500,000 on or before the 4 th monthanniversary of the Effective Date, (iv) $500,000 on or before the8 th month anniversary of the Effective Date, and (v) issuing, as fully paid and non-assessable, a total of6,000,000 Shares (the “ Payment Shares ”) on or before the6 th month anniversary of the Effective Date.
The Payment Shares will be subject to a voluntaryresale restriction from the date of issuance of the applicable PaymentShares, with 10% of such Payment Shares being released on March 31,2023 and 15% of such Payment Shares being released every three monthsthereafter.
The Optionee will use its reasonable commercial effortsto list the Payment Shares on the CanadianSecurities Exchange or any other stock exchange in Canada (the“ Listing ”) .
If the Optionee has more than 85,000,000 common sharesissued and outstanding on a fully diluted basis at the time ofcompleting the Listing, then it will issue such number of additionalPayment Shares to the Optionor equal to: (a) 8.95% multiplied by; (b)the number of issued and outstanding shares of the Optionee on a fullydiluted basis at the time of completing the Listing; (c) minus6,000,000.
In connection with the Option, the Corporation will pay$120,000 in cash (inclusive of taxes) as a finder's fee, which will bepaid in proportion to the same installment period as the considerationthat the Company will receive. Such fee is subject to the acceptanceof the TSX Venture Exchange.
ABOUT GLEN EAGLE RESOURCESINC.
Glen Eagle Resources Inc. is a small producer and an exploration company of precious metalsin Canada and the Central America area.
For more information, pleasecontact:
Jean Labrecque
President
1-514-808-9807
Neither TSXVenture Exchange nor its Regulation Services Provider (as that term isdefined in the policies of the TSX Venture Exchange) acceptsresponsibility for the adequacy or accuracy of this release.
Forward Looking Statements - Certaininformation set forth in this news release may contain forward-lookingstatements that involve substantial known and unknown risks anduncertainties, including with respect to the receipt of final approvalof the Offering by the TSXV. These forward-looking statements aresubject to numerous risks and uncertainties, certain of which arebeyond the control of the Corporation, including the timing and natureof all regulatory approvals. Readers are cautioned that theassumptions used in the preparation of such information, althoughconsidered reasonable at the time of preparation, may prove to beimprecise and, as such, undue reliance should not be placed onforward-looking statements.
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