Tempus Resources, a private Canadian company incorporated in Ontario, signed a purchase agreement with Pancontinental Resources (TSXV: PUC) to acquire a 100% interest in Pancon’s Montcalm, Nova, Gambler and St. Laurent nickel-copper-cobalt exploration projects in northern Ontario.
In a press release, Pancontinental said the sale of the battery metals projects will allow the company to focus on the Brewer Gold Mine project and the Jefferson gold project in South Carolina, USA.
Pancontinental said it wants to focus its efforts on the Brewer Gold Mine project and the Jefferson gold project in South Carolina
“We are very pleased to partner with Tempus Resources, a private company whose owners have been and remain Pancon shareholders, and who fully understand the significant value potential of these Ontario battery metals assets,” Layton Croft, Pancon president and CEO, said in the media brief.
To go ahead with the deal, Tempus made a C$100,000 cash payment upon signing and will make another one of C$100,000 by September 20, 2020. By June 20, 2021, Tempus has to make a final cash payment of C$800,000.
Once C$1 million has been paid by Tempus and Pancon has fulfilled all obligations of the current respective option agreements, Tempus will own an 80% interest in all four projects, and Pancon will retain a 20% free carry interest.
After Tempus spends C$2 million to explore one or more of the projects, the company’s interest increases to 100% and Pancon retains a 1.5% net smelter royalty on each of the four projects.