Fancamp Exploration Ltd. is pleased to announce that it has entered into an agreement with The Sheridan Platinum Group Ltd. pursuant to which it will acquire a portfolio of interests held by Sheridan in the Magpie property, the Lac Lamêlée property, the Fermont property, the Longue Pointe de Mingan property, the Desolation Lake property, the Lac au Vent property, the North Shore property and the Villebon property, for a total consideration of $250,000 payable by way of a promissory note due no later than four (4) months from closing and of 10,000,000 common shares of Fancamp issuable upon closing.
Highlights of the transaction:
- Fancamp will acquire 57,721,962 common shares in the capital of The Magpie Mines Inc. ("Magpie Mines") and, as a result, will increase its total holdings in the capital of Magpie Mines from 46.7% to 96.3% of the issued and outstanding common shares, therefore becoming the controlling shareholder of Magpie Mines. Fancamp will acquire an additional 1.0% net smelter returns royalty on the Magpie property.
- Fancamp will acquire an additional 1.5% net smelter returns royalty on the Lamêlée property owned by Lamêlée Iron Ore Ltd., a corporation in which Fancamp is a significant shareholder.
- Fancamp will acquire an additional 1.5% net smelter returns royalty on the Fermont properties. This royalty will thereafter be transferred to Champion Iron Mines Limited, the owner of the Fermont properties, for a total consideration of $300,000, being $50,000 payable in cash upon closing and $250,000 payable by way of a promissory note due no later than four (4) months from closing.
- Fancamp will increase its position to 100% in the Longue Pointe de Mingan ferro-titanium property, the Desolation Lake iron property, Lac au Vent property, the North Shore property and the Villebon property.
Peter H. Smith, Fancamp's President and CEO, said, "Fancamp has, by this single transaction, greatly simplified its structure and added significant value to its portfolio of assets. The Company's proprietary Magpie Process - a part of the Magpie Deposit asset and related to the separation of its complex ores - is of immediate interest because of its income producing potential. Such licencing arrangements for end users are a low risk way forward for the Company and the first of these tests of the Process will begin shortly on slag and concentrate samples provided by Pangang/Ansteel, a major Chinese producer."
This transaction is subject to the approval of the TSX Venture Exchange and to the execution and delivery of assignment and assumption agreements in respect of each of the properties.