Brixton Metals Corp. (TSX-V: BBB | OTCQB: BBBXF)has announced the signing of a definitive agreement with Pacific Bay Minerals Ltd. (TSXV: PBM), giving Pacific Bay the option to acquire 100% interest in Brixton’s Atlin Goldfields Project, located within the traditional territory of Taku River Tlingit First Nations, Atlin, British Columbia, Canada.
Chairman and CEO Gary R. Thompson stated, “We are delighted to conclude the definitive agreement with Pacific Bay and look forward to their exploration results in the years to come.”
Under the terms of the definitive agreement, Pacific Bay may acquire up to a 100% interest in the Atlin Goldfields Project, by paying Brixton C$3,225,000 in cash, issuing to Brixton 10,000,000 Pacific Bay common shares, incurring C$7,000,000 in exploration expenditures over 7 years and if completed, Brixton shall retain a 2% NSR.
The earn-in will be broken down into two parts with Pacific Bay having the option to earn an initial 51% interest in the Property by completing C$3,500,000 in exploration expenditures, paying C$1,725,000 cash, and issuing 5,000,000 Pacific Bay shares, on or before the 4th anniversary of the closing of the agreement.
Pacific Bay may then earn an additional 49% interest in the property by completing a further C$3,500,000 in exploration expenditures, paying C$1,500,000 cash, and issuing 5,000,000 Pacific Bay shares, on or before the 7th anniversary of the closing of the Agreement.
If Pacific Bay exercises the 51% earn-in and elects to not exercise the additional 49% earn-in, Pacific Bay and Brixton will enter into a joint venture, whereby the interest in the property will revert to 49% in favour of Pacific Bay and 51% in favour of Brixton, with each party then participating in programmes and budgets according to their pro-rata interests.
If Pacific Bay completes the option and acquires 100% of the property, Brixton will retain a 2% Net Smelter Return Royalty (NSR), with half of the NSR purchasable at any time by Pacific Bay for C$2,500,000.
The outside date of the closing is June 18, 2022 which shall include a minimum of C$500,000 financing, a NI-43-101 Technical Report by Pacific Bay and regulatory approvals.
For further information please visit: https://brixtonmetals.com/
