Nov 19 2010
Paget Minerals Corp. (TSX VENTURE:PGS) today announced that it has signed an option agreement with Seymour Ventures Corp. (TSX-V:SEY) whereby Seymour can acquire a 60% interest in Paget's Mt. Bisson and Xeno rare earth element properties.
Seymour will pay $62,500 and issue 100,000 common shares of Seymour to Paget upon receipt of applicable regulatory approvals. An additional $62,500 will be payable to Paget on the first, second and third anniversaries of the option, together with an additional 100,000, 150,000 and 200,000 common shares of Seymour, respectively.
Pursuant to the option agreement, Seymour will be required to fund a $1,050,000 work program over 3 years on the properties. Paget will retain a 100% interest in the properties until all of the above payments, work programs and share issuances are completed. In the event that Seymour exercises the option, a 60/40 joint venture is deemed to be created to further develop the properties, with each party contributing to their pro-rata portion of approved exploration programs. If either party decides not to contribute to the joint venture and is diluted down to a 10% interest, their interest will convert to a 2% Net Smelter Royalty (NSR), 1% of which may be purchased at the other party's option for $1,000,000.
David Volkert, President & CEO stated, "Capitalizing Paget's rare earth assets will allow for the rapid advancement of the properties by Seymour in its new business plan. Paget maintains exposure to the developing rare earth market, while focusing on its gold-silver portfolio in the Americas."
Source: Paget Minerals Corp.