VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 3, 2017) - Redzone Resources Ltd. ("Redzone" or the "Company") (TSX VENTURE:REZ) is pleased to announce that it has entered into an option agreement ("Option Agreement") with two vendors (the "Vendors") providing for the grant to the Company of an option to acquire a 100% interest in the Lucky Mica Claim Group (the "Property") located approximately eight miles south west of the city of Wickenburg in Maricopa County, Arizona.
The claims cover the "Fortner and Boyd Lithium Deposit" recorded as such by the USGS (United States Geological Survey) as Deposit 10064183 and catalogued as MRDS (Mineral Resources Data System) ID TC38458.
Option Agreement Terms
The original terms of the option were announced by the Company in a news release dated August 2, 2016 ("2016 NR") pursuant to a binding letter agreement which the Option Agreement supersedes and replaces. Further information about the Property is described in the 2016 NR available on the Company's issuer profile on SEDAR at www.sedar.com.
Under the terms of the Option Agreement, the Company has the option to acquire a 100% interest in the Property by making the following cash payments and share issuances:
- cash payment of US$47,500, which has been fully paid as at the date hereof; and
- Issuance of 300,000 common shares in the capital of the Company (the "Shares") of which 200,000 Shares has been issued.
Under the terms of the Option Agreement, the Company will pay a 0.667% net smelter return royalty (the "NSR") to the Vendors on all minerals produced, mined or otherwise recovered from the Property. The Company will have the right, at any time, to purchase 100% of the NSR for C$1,000,000.
One of the Vendors, Alan Matthews, is a non-arm's length party to the Company by virtue of being a director of the Company. The entering into of the Option Agreement was considered a "related party transaction" pursuant to Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company was exempt from the requirements to obtain a formal valuation or minority shareholder approval in connection with Mr. Matthew's participation in the transaction in reliance of sections 5.5(b) and 5.7(a) of MI 61-101.
About Redzone Resources Ltd.
Redzone is a mineral exploration company. Redzone is listed on the TSX Venture Exchange (REZ) and more information can be found at www.redzoneresources.ca.
