MK2 Ventures has completed the acquisition of the Bakar high grade copper property located on Northern Vancouver Island, British Columbia.
Image: A copper native. Photo: courtesy of Native_Copper_Macro_Digon3.jpg: “Jonathan Zander (Digon3)" derivative work: Materialscientist (talk)/Wikipedia.
As announced on May 24, 2019, the Company also acquired additional mineral claims contiguous to the northwest and southeast of the Bakar Property, increasing the size of the Bakar Property from 1,349 hectares to 15,687 hectares.
The Acquisition
Pursuant to the purchase agreement dated May 1, 2019 (the “Purchase Agreement”) among the Company and Longford Capital Corp. and James Rogers, as vendors (together, the “Vendor”), the Company has made the following payments and share issuances to the Vendor in payment of the purchase price for the Bakar Property:
$10,000 cash deposit paid on the date of execution of the Purchase Agreement;
$40,000 cash payment paid on closing of the Acquisition;
500,000 common shares of the Company issued on closing of the Acquisition, which common shares are subject to a statutory hold period expiring 4 months from the date of issue; and
750,000 common shares of the Company issued on closing of the Acquisition which common shares are subject to a hold period expiring 6 months from the date of issue.
In addition, the Company has granted the Vendor a 2% NSR in respect of the Bakar Property subject to the right of the Company to repurchase 1% of the royalty for $1,500,000 cash, and the remaining 1% for $5,000,000 cash.
Pursuant to the Purchase Agreement the Company must incur $200,000 in expenditures (the “Expenditure Commitment”) on the Bakar Property within six (6) months of the date hereof. As announced on June 10, 2019, the Company completed an Airbone Versatile Time Domain Electromagnetic (VTEM) Plus survey on the Bakar Property and commenced a geological mapping and sampling program. Having recently completed the geological sampling program, the Company expects that the Expenditure Commitment has been satisfied.
In connection with the Acquisition, the Company has filed a technical report on the Bakar Property in accordance with National Instrument 43-101-Standards of Disclosure for Mineral Projects. The technical report is available under the Company’s profile on www.sedar.com.
Reactivation, Graduation to TSXV and Name Change
The Company is also pleased to announce that its application to reactivate from NEX to the TSX Venture Exchange as “District Metals Corp.” has been approved, subject to the completion of the acquisition of the Bakar Property.
Effective on the open of trading on July 17, 2019, the Company’s listing will transfer from the NEX to the TSX Venture Exchange as a Tier 2 Mining Issuer. Also effective at the opening of trading on July 17, 2019 the trading symbol for the Company will change from MK.H to DMX.
Source: Company Press Release