Sunrise Re-negotiates Acquisition of Interest in Timothy Property
15.05.2013 | FSCwire
Armstrong, British Columbia CANADA, May 15, 2013 /FSC/ - Sunrise Resources Ltd. (SHI - TSX Venture), announced on March 1, 2013 that it had entered into a Letter of Intent ("LOI") with Northland Metals Corp. ("Northland") in order for Sunrise to purchase an undivided 20% interest in the Timothy Property. Sunrise already owns an undivided 40% interest and wishes to gain control of the Timothy Property and carry out a drill program. The consideration for the purchase was to be the issuance of 3,736,800 common shares of Sunrise. As a result of the sudden increase in the price of Sunrise's common shares, Sunrise management re-negotiated the transaction and Sunrise will now be purchasing an undivided 60% interest in the Timothy Property in consideration of the original number of shares. It is proposed that the transaction now take the form of a merger between Northland and a new Sunrise subsidiary to be incorporated for that purpose. The Northland shareholders will retain a 2% NSR royalty with a $2,500,000 buyout.This re-negotiated transaction has not yet been documented, but that is expected to occur this week. The transaction is subject to various conditions, including approval of the TSX Venture Exchange as well as the Board of Directors of each company and the shareholders of Northland. As announced on May 7, 2013, Sunrise is in the process of arranging a financing in order to drill several properties including the Timothy Property. Northland spent approximately $560,000 on an exploration program in 2011/12, including in particular a Titan 24 DC induced polarization geophysical survey carried out by Quantec Geoscience Ltd. The survey produced exciting new results and identified multiple drill targets.
For further information, please contact:
Sunrise Resources Ltd.
Responsible Officer: Irvin Eisler, CEO
Telephone: (250) 546-6559
Email: i_eisler@telus.net
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.