Ximen Mining announces that it has entered into a royalty option agreement with Gungnir Resources pursuant to which the Company has acquired an option, exercisable in the Company’s sole discretion, to purchase all of Gungnir’s remaining interest in its 4% gross metal royalty over the Kenville Gold Mine Property for total consideration of $1,700,000.
To exercise the Option, Ximen will pay the Purchase Price as follows, all in accordance with the terms and conditions of the Agreement: $500,000 in cash, currently held in escrow and to be released to Gungnir upon approval of the transaction by the TSX Venture Exchange (TSXV), $200,000 in common shares of Ximen (the “Shares”), to be issued within 10 days after the TSXV approval at a price per share equal to the volume weighted average price of the Shares for the 20 trading days prior to the announcement date; and $1,000,000 in cash, to be paid on or before October 31, 2019.
The exercise of the Option is subject to Ximen paying the Purchase Price as set out above and the receipt of TSXV approval on or before June 15, 2019 (unless such date is extended in accordance with the Agreement).
Once issued, the Shares will be subject to a hold period of four months and a day from the date of issuance. A total of $3,000,000 remains payable under the terms of the Royalty.
Source: Company Press Release