JOURDAN RESOURCES INC. (“Jourdan” or the “Company“) is pleased to announce that it has entered into an asset purchase agreement dated as of May 19, 2023 with Globex Mining Enterprises Inc. (the “Agreement”) to acquire six mining claims located north of Val d’Or in Quebec (the “Claims”).
The Claims are surrounded by the Company’s other mining claims in the area known as the Vallée project (see figure 1 below). Consideration for the acquisition is as follows:
- 2,040,816 common shares of the Company at a deemed price of $0.0735 per share, being the 10-day volume weighted average price of the shares on the TSX Venture Exchange (“TSXV”) as of the date of this release; and
- a 2% net smelter return royalty affecting the Claims payable to the vendor, half of which Jourdan is entitled to repurchase prior to the commencement of commercial production for $1 million (indexed to Canadian inflation as represented by the consumer price index).
The common shares of the Company issued to the vendor in connection with the acquisition will be subject to a regulatory hold period of four months and one day from the closing. The acquisition is an arm’s length transaction for the purposes of the policies of the TSXV and is subject to the approval of the TSXV. Jourdan is not paying any finder’s fees in connection with the acquisition. The closing of the acquisition is subject to the satisfaction of customary conditions precedent on or before the August 15, 2023 longstop date, including, inter alia, approval of the TSXV.
“This acquisition was structured to close a gap in our flagship Vallée project and the recently acquired Vallée NE claims,” said Dr. Andy Rompel, Vice President Exploration, “As we believe that our known spodumene-rich pegmatite swarm may extend through these claims and eventually appear in the southern parts of Vallée NE. Hence, it was important for us to close the gap to further increase the number of targets we already have for additional exploration in the foreseeable future.”
The Company also announces that it has granted 1,400,000 stock options to the Company’s executive chairman, Richard Quesnel, pursuant to the Company’s stock option plan. The stock options vest in equal quarterly installments over two years and may be exercised at a price of $0.07 per option for a period of five years from the date of grant. This grant of options is subject to the approval of the TSXV.