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Questcorp Mining Inc. (CSE: QQQ) (OTCQB: QQCMF) (FSE: D910) (the "Company" or "Questcorp") has reached an agreement (the "Agreement") to complete its option exercise (the "Option") and acquire the remaining forty-nine percent interest in the North Island Copper Project (the "Project"), bringing its ownership to 100% upon completion.
The North Island Copper Project consists of a series of mineral claims, totalling approximately 1,168 hectares, located near Port Hardy on Vancouver Island, British Columbia. The Company currently holds a fifty-one percent interest in the Project and has the Option to acquire the remaining forty-nine percent interest from the current owner (the "Vendor").
Pursuant to the Agreement, the Company intends to exercise the Option and acquire the remaining forty-nine percent interest in the Project by completing a final cash payment of $110,000 and issuing 250,000 common shares (the "Consideration Shares") to the Vendor. Following exercise of the Option, the Company will hold a one-hundred percent interest in the Project and will grant to the Vendor a three percent net smelter returns royalty (the "Royalty") on commercial production from the Project. The Company may acquire the first one percent of the Royalty by completing a cash payment of $750,000, and may acquire the remaining two percent of the Royalty for an additional $1,000,000.
The Consideration Shares will be subject to restrictions on resale for a period of four-months-and-one-day in accordance with applicable securities laws. The Company is at arms-length from the Vendor, and its principal. Completion of the exercise the Option remains subject to applicable regulatory approvals.
About Questcorp Mining Inc.
Questcorp Mining Inc. is engaged in the business of the acquisition and exploration of mineral properties in North America, with the objective of locating and developing economic precious and base metals properties of merit. The Company holds an option to acquire an undivided 100% interest in and to mineral claims totaling 1,168.09 hectares comprising the North Island Copper Property, on Vancouver Island, British Columbia, subject to a royalty obligation. The Company also holds an option to acquire an undivided 100% interest in and to mineral claims totaling 2,520.2 hectares comprising the La Union Project located in Sonora, Mexico, subject to a royalty obligation.
This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the intended exercise of the Option. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to general business, economic, competitive, political and social uncertainties, uncertain capital markets; and delay or failure to receive board or regulatory approvals. There can be no assurance that such forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/320358