Pedro Resources Ltd. is a Canadian exploration company focused on mineral exploration and development
Pedro Resources Announces Acquisition of Voisey's Bay. (Credit: Gerd Altmann from Pixabay.)
Pedro Resources Ltd. (“Pedro” or the “Company”) is pleased to announce that, further to its press release of November 27, 2020, it has acquired (the “Transaction”) all of the issued and outstanding common shares in the capital of Voisey’s Bay West Nickel & Cobalt Corp. (“Voisey’s Bay”). The Transaction was carried out by way of a share purchase agreement dated November 27, 2020 between the Company, Voisey’s Bay and the shareholders of Voisey’s Bay (collectively, the “Vendors”). Voisey’s Bay is a private company formed under the laws of Ontario, whose sole asset is a 100% interest in 13 prospective mineral licenses, comprising 721 claims (18,025 hectares) (the “Property”), 4.5 km south of Vale’s Voisey’s Bay Mine in the province of Newfoundland and Labrador, Canada (the “Vale’s Property”).
As consideration for the Transaction, the Company issued an aggregate of 8,000,000 common shares in the capital of the Company (the “Consideration Shares”) at a deemed price of $0.08 per Consideration Share to the Vendors issued in six (6) equal allotments over a period of three (3) years, and cash payments of $165,000 payable on each of the first three anniversaries of the closing of the Transaction. All securities issued pursuant to the Acquisition are subject to a statutory hold period of four months and one day from the issuance thereof, as applicable, in accordance with applicable securities laws.
In connection with the Transaction, the Company has granted a 2.5% net smelter returns royalty (“NSR”) in favour of a syndicate, subject to the ability of the Company to purchase 1% of the NSR (resulting in the remaining NSR being 1%) for a purchase price of $1,500,000 at any time before fifth anniversary of the date hereof.
Source: Company Press Release