Mosaic Signs Letter of Intent to Sell Up to 100% Interest in the Lichen Project
26 Abril 2024 - 7:15AM
Mosaic Minerals Corporation (CSE: MOC) (“Mosaic” or “The
Company”) is pleased to announce that it has entered into
a letter of intent dated April 25, 2024 (the “LOI”) with Castlebar
Capital Corp (TSX-V: CBAR.P) (“Castlebar”). Pursuant to the LOI,
Castlebar will be granted an option to acquire (the “Transaction”)
up to a 100% interest in the Lichen Project (the “Lichen Project”
or “Property”). The Transaction is intended to be Castlebar’s
“Qualifying Transaction” for purposes of the TSX Venture Exchange’s
(the “Exchange”) Capital Pool Company program.
The Lichen Project consists of 282 claims
covering a total area of 15,622 hectares and is located
approximately 100 km west of the Chibougamau mining camp. The
property is underlain by the volcanic rocks of the Obatogamau
formation intruded by stocks and plutons of intermediate
composition. The volcanic belt is parallel to two known gold
bearing volcanic belt, the Bachelor Lake gold area to the west and
the Osisko-Windfall gold area to the south. The Nelligan Gold
project and The Monster Lake Gold project are located at the
eastern extremity of the volcanic belt. Numerous gold and copper
showings are also found to the east and to the west of the
property.
Terms of the LOI:
Pursuant to the LOI, Castlebar may acquire up to
a 50% undivided interest (the “First Option”) in the Lichen project
from Mosaic by, among other things:
(i) |
make aggregate cash
payments of $205,000 to Mosaic as follows: |
|
(1) |
$15,000 on the closing of Qualifying Transaction (the
“Effective Date”); |
|
(2) |
an additional $15,000 within six
months following the Effective Date; |
|
(3) |
an additional $50,000 on or
before the first anniversary of the Effective Date; |
|
(4) |
an additional $50,000 on or
before the second anniversary of the Effective Date; and |
|
(5) |
an additional $75,000 on or
before the third anniversary of the Effective Date; and |
(ii) |
by issuing an
aggregate of 1,350,000 shares to Mosaic as follows: |
|
(1) |
250,000 shares no later than
seven days following the Effective Date; |
|
(2) |
an additional 350,000 shares on
or before the first anniversary of the Effective Date; |
|
(3) |
an additional 250,000 shares on
or before the second anniversary of the Effective Date; and |
|
(4) |
an additional 500,000 shares on
or before the third anniversary of the Effective Date; and |
(iii) |
by incurring at least
$750,000 in qualifying expenditures on the Property as
follows: |
|
(1) |
at least $150,000 in qualifying
expenditures on the Property on or before the first anniversary of
the Effective Date; |
|
(2) |
at least $200,000 in cumulative
qualifying expenditures on the Property on or before the second
anniversary of the Effective Date; and |
|
(3) |
at least $400,000 in cumulative
qualifying expenditures on the Property on or before the third
anniversary of the Effective Date. |
|
|
|
Upon exercise of the First Option, Castlebar
shall have forty-five (45) days to either (i) establish a joint
venture with Mosaic in which each shall hold a 50% joint venture
interest or (ii) exercise an additional option (“Additional
Option”) to acquire an additional 50% interest in the Property by
making a $150,000 cash payment and issuing 1,500,000 shares to
Mosaic within the forty-five (45) day period. If Castlebar
exercises the Additional Option, then it will have earned 100%
undivided interest in the Property free and clear of all
encumbrances except for a 2% net smelter royalty to be retained by
Mosaic. Castlebar may accelerate and carry forward any of the cash
payments, share issuances or work expenditures.
About Mosaic Minerals
Corporation
Mosaic Minerals Corp. is a Canadian mining
exploration company listed on the Canadian Securities Exchange
(CSE: MOC) focusing on the exploration of critical minerals such as
Nickel in the province of Quebec.
This release contains certain “forward-looking
information” under applicable Canadian securities laws concerning
the Arrangement. Forward-looking information reflects the Company’s
current internal expectations or beliefs and is based on
information currently available to the Company. In some cases,
forward-looking information can be identified by terminology such
as “may”, “will”, “should”, “expect”, “intend”, “plan”,
“anticipate”, “believe”, “estimate”, “projects”, “potential”,
“scheduled”, “forecast”, “budget” or the negative of those terms or
other comparable terminology. Assumptions upon which such
forward-looking information is based includes, among others, that
the conditions to closing of the Arrangement will be satisfied and
that the Arrangement will be completed on the terms set out in the
definitive agreement. Many of these assumptions are based on
factors and events that are not within the control of the Company,
and there is no assurance they will prove to be correct or
accurate. Risk factors that could cause actual results to differ
materially from those predicted herein include, without limitation:
that the remaining conditions to the Arrangement will not be
satisfied; that the business prospects and opportunities of the
Company will not proceed as anticipated; changes in the global
prices for gold or certain other commodities (such as diesel,
aluminum and electricity); changes in U.S. dollar and other
currency exchange rates, interest rates or gold lease rates; risks
arising from holding derivative instruments; the level of liquidity
and capital resources; access to capital markets, financing and
interest rates; mining tax regimes; ability to successfully
integrate acquired assets; legislative, political or economic
developments in the jurisdictions in which the Company carries on
business; operating or technical difficulties in connection with
mining or development activities; laws and regulations governing
the protection of the environment; employee relations; availability
and increasing costs associated with mining inputs and labour; the
speculative nature of exploration and development; contests over
title to properties, particularly title to undeveloped properties;
and the risks involved in the exploration, development and mining
business. Risks and unknowns inherent in all projects include the
inaccuracy of estimated reserves and resources, metallurgical
recoveries, capital and operating costs of such projects, and the
future prices for the relevant minerals. The Canadian Securities
Exchange does not accept responsibility for the adequacy or
accuracy of this release.
NOT FOR DISTRIBUTION IN THE UNITED STATES OR ANY
US NEWS WIRE SERVICES AND DOES NOT CONSTITUTE AN OFFER OF THE
TITLES DESCRIBED HEREIN.
Source:
M. Jonathan Hamel
President & CEO
jhamel@mosaicminerals.ca