Glen Eagle Resources Signs Agreement to Option 100% of Moose Lake Property
Montreal, June 20, 2022 - Glen Eagle Resources Inc. (the "Corporation") (TSXV:GER) (OTC:GERFF) is pleased to announce that it has entered into an option agreement (the "Agreement") with an unlisted reporting issuer (the "Optionee"), which provides the Optionee the right to acquire (the "Option") a 100% interest in the Moose Lake Property (the "Property") located in the Province of Quebec. The Property is subject to a 1% NSR interest to an arm's length third party. The NSR can be bought back for a consideration of $1,000,000. Jean Labrecque, President and CEO, commented: "The company issued a news release on March 16, 2022 stating that management would look at every option to maximize shareholder's value relating to its Moose Lake phosphate asset near Chicoutimi, Quebec. With the current agreement, the Company has fulfilled its commitment and we are very pleased with the transaction that is mutually satisfactory to both parties."
Under the Agreement, the Optionee will acquire the interest in the Property by paying the Corporation a total of $2,391,000 as follows: (i) $191,000 on June 17, 2022 (the "Effective Date"), (ii) $300,000 on or before July 7, 2022, (iii) $500,000 on or before the 4th month anniversary of the Effective Date, (iv) $500,000 on or before the 8th month anniversary of the Effective Date, and (v) issuing, as fully paid and non-assessable, a total of 6,000,000 Shares (the "Payment Shares") on or before the 6th month anniversary of the Effective Date.
The Payment Shares will be subject to a voluntary resale restriction from the date of issuance of the applicable Payment Shares, with 10% of such Payment Shares being released on March 31, 2023 and 15% of such Payment Shares being released every three months thereafter.
The Optionee will use its reasonable commercial efforts to list the Payment Shares on the Canadian Securities Exchange or any other stock exchange in Canada (the "Listing").
If the Optionee has more than 85,000,000 common shares issued and outstanding on a fully diluted basis at the time of completing the Listing, then it will issue such number of additional Payment Shares to the Optionor equal to: (a) 8.95% multiplied by; (b) the number of issued and outstanding shares of the Optionee on a fully diluted basis at the time of completing the Listing; (c) minus 6,000,000.
In connection with the Option, the Corporation will pay $120,000 in cash (inclusive of taxes) as a finder's fee, which will be paid in proportion to the same installment period as the consideration that the Company will receive. Such fee is subject to the acceptance of the TSX Venture Exchange.
ABOUT GLEN EAGLE RESOURCES INC.
Glen Eagle Resources Inc. is a small producer and an exploration company of precious metals in Canada and the Central America area.
For more information, please contact:
Jean Labrecque
President
1-514-808-9807
Neither 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.
Forward Looking Statements - Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties, including with respect to the receipt of final approval of the Offering by the TSXV. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of the Corporation, including the timing and nature of all regulatory approvals. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.