Prime Meridian Resources Corp. Update on the Option to Purchase 100% of the La Verde Project in Sonora State, Mexico
Vancouver, British Columbia--(Newsfile Corp. - March 31, 2022) - Prime Meridian Resources Corp. (TSXV: PMR) ("PMR'' or the "Company") is pleased to announce the following update on the Company's proposed option to purchase the La Verde Project, which was initially announced in a news release dated December 9th 2021. Trading in the shares of the company has been halted, pending receipt and review of acceptable documentation regarding the fundamental acquisition, pursuant to Section 5.6(d) of exchange Policy 5.3.
The Company has submitted the required documentation to the TSX Venture Exchange for review including the following:
- Signed Option to Purchase Agreement, dated March 14th 2022
- National Instrument 43-101 Technical Report on the on the La Verde Project, Sonora, Mexico
- Legal Title Opinion on the "La Verde" mining concession titles, dated February 1st 2022
- Minutes of the PMR Annual General Meeting held on February 10th 2022
- Required Personal Information Form/Declaration for the principal of the Vendor
The Company has also formed a new Mexican subsidiary, Sonoran Copper, S.A. de C.V. and has reserved the symbol (SDCU) for the Company's new name, Sonoran Desert Copper Corporation, subject to the TSX Venture Exchange approval of the transaction.
Transaction Details to exercise the Option to Purchase:
- PMR is required to make a US$200,000 cash payment to the Optionor within 30 days of Exchange Approval and an additional payment of US$200,000 by February 28, 2023, both of which payments are contractual obligations of PMR.
- PMR will issue to the Optionor 25 million common shares at a deemed price of Cdn$0.15 per share within 30 days of Exchange Approval.
- PMR will issue to the Optionor a further Cdn$3,750,000 of PMR shares prior to the first anniversary of Exchange Approval based on the ten day volume weighted average price (VWAP) prior to issuance subject to a minimum price of Cdn$0.15 and a maximum price of Cdn$0.63.
- PMR will issue to the Optionor a further Cdn$2,500,000 of PMR shares prior to the second anniversary of Exchange Approval based on the ten day VWAP subject to a minimum price of Cdn$0.15 and a maximum price of Cdn$1.25.
- Upon exercise of the Option the Optionor will retain the following net smelter return royaly ("NSR") on the Project: (i) a 2% NSR on all production from the skarn mineralization; and (ii) a 2% NSR on all production from the porphyry mineralization subject to the right of PMR to purchase 1% for US$1 million.
- The common shares issued to the Optionor under the Option will be subject to a three year time-release hold period which will begin on the date that PMR receives Exchange Approval.
On behalf of the Board of Directors of
Prime Meridian Resources Corp.
"Brian Leeners"
Brian Leeners, CEO & Director
ir@primemeridianresources.com
The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved or disapproved the contents of this press release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/118703