Cartier Resources Inc. ("Cartier") announces the execution of a purchase agreement with Murgor Resources Inc. ("Murgor") to acquire a 100% interest in the Benoist property consisting of 98 mining claims. The Benoist project is the host of the Pusticamica gold deposit and is located 65 km northeast of the town of Lebel-sur-Quévillon in the province of Quebec.
Under the purchase agreement dated May 22, 2012, which is subject to required regulatory approvals, Cartier has agreed to acquire immediately a 100% interest in the Benoist project in consideration for the payment of a sum of $250,000 in cash and the issuance of 650,000 common shares. Murgor will retain a 1% net smelter return royalty (NSR) on the 98 mining claims. The common shares to be issued by Cartier will be subject to a hold period of four months and one day under the applicable securities regulations.
It should be noted that the Benoist project was previously under option from Murgor (see press release of Cartier dated March 5, 2012). More particularly, Cartier had a first option to acquire an undivided 51% interest in the project in exchange for (a) the payment of an amount of $100,000 in cash (paid) and the issuance of 250,000 common shares (issued); and (b) the issuance of 250,000 additional common shares and exploration expenditures of $3,000,000 before March 1, 2015. In addition, Cartier had a second option to acquire an additional 49% undivided interest in the Benoist project in exchange for the issuance of 500,000 common shares and additional exploration expenditures of $ 3,000,000 before March 1, 2018. As of March 31, 2013, Cartier had committed a total of $1,335,000 in exploration work on the Benoist project.
At the signing of the option agreement with Murgor back in March 2012, the Benoist project consisted of 52 mining claims. By mutual agreement between the parties, the property has been extended and the Benoist project now consists of an aggregate of 98 mining claims.
It is also worth noting that 16 mining claims are subject to a 1.5% net smelter return royalty (NSR - NSR) payable to a previous seller, which is redeemable by Cartier for $1.5 million. In addition, 42 mining claims (16 of which are also subject to the 1.5% NSR royalty mentioned above) are subject to an additional 1% NSR in favor of another previous seller.
Source: http://www.ressourcescartier.com/