Ubique Minerals and Kapuskasing Gold Corp Agree on Letter of Intent for Ubique to Option Daniel’s Harbour Newfoundland Property
TORONTO, ON / ACCESSWIRE / December 6th, 2018 / Ubique Minerals Limited (CSE:UBQ) ("Ubique") and Kapuskasing Gold Corp. (TSX-V:KAP) ("Kapuskasing") announce that they have signed a Letter of Intent which contemplates Kapuskasing granting Ubique an option to earn a 55% or greater interest in Kapuskasing's Daniel's Harbour property in western Newfoundland, which comprises 42 claim units covering an aggregate of 1,326 hectares, adjoining Ubique's Daniel's Harbour property to its west and making for a contiguous property area of more than 4,000 hectares.
The letter of intent provides the companies with a short time frame in which to complete due diligence and a definitive agreement . Pursuant to the letter of intent, Ubique would exercise the option by making the work and payment commitments as follows:
- On the date of signing of the definitive agreement, $10,000 cash and 500,000 shares of Ubique;
- Prior to March 9, 2019, a minimum work expenditure of $12,000 and file an assessment report;
- Prior to September 15, 2019, a minimum work expenditure of $100,000 inclusive of the $12,000 above;
- Prior to the 1 year from the definitive agreement date, $10,000 in cash and an additional 300,000 common shares of Ubique;
- Prior to February 28, 2020, make a minimum additional work expenditure of $200,000;
- Prior to the 2 years from the definitive agreement date issue, an additional 200,000 common shares of Ubique;
- Prior to February 28, 2021, a minimum additional work expenditure of $300,000, which expenditures will include any payments and commitments needed to be made to the underlying vendors of the optioned property;
- Upon Ubique having made the above expenditures and payments; Ubique will have earned a 55% interest in the property . Ubique will be granted the option to earn an additional 15% interest in the property by spending an additional $400,000 on exploration and paying the underlying vendors a cash payment of $40,000 as required by the underlying agreement with the vendors.
Upon UBQ earning either a 55% or 70% interest in the property, the companies will form a joint venture to continue exploration or KAP may elect to grant UBQ the right to earn an additional 5% interest in the property for every additional work expenditure of $100,00 to a limit of 95% ownership by UBQ at which time the agreement provides for KAP's interest to be converted to a 2% Net Smelter Royalty ("NSR").
UBQ will then have the right to buy back 1.75% of the NSR for $2,000,000 . The underlying vendors will be entitled to an NSR of 3% of which 2% may be repurchased for $2,000,000 . In addition, the underlying vendors may be entitled to a bonus payment in the event that the Operator delineates a National Instrument 43-101 compliant resource of a minimum of 5,000,000 tonnes of ore with a grade of at least 7% zinc.
The KAP property covers most of the area of the historic mining areas of the former Daniel's Harbour mine and, once the Definitive Agreement has been executed, UBQ intends to review all the relevant historic data relating to diamond drilling in the vicinity of the mined out areas to determine where and what potential exists for extensions of historically mined areas.
Ubique CEO Gerald Harper commented that "the company has had considerable success identifying extensions of historically mined areas on its own property and considers that some of the historically mined areas on the Kapuskasing property should have similar high potential and that with a combined exploration target area of more than 4,050 hectares the likelihood of defining a large enough resource for consideration of development has been significantly enhanced".
More information regarding Ubique's exploration activities and results will be found on their website at www.ubiqueminerals.com
Dr . Gerald Harper, P.Geo.(Ont), the CEO of Ubique, is the qualified person as defined by NI 43-101, responsible for the technical data presented herein and has reviewed and approved this release.
About Ubique Minerals Limited .
Forward-Looking Information: This press release may include forward-looking information within the meaning of Canadian securities legislation, concerning the business and trading in the common stock of Ubique Minerals Limited., the raising of additional capital and the future development of the business . The forward-looking information is based on certain key expectations and assumptions made by the company's management . Although the company believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because Ubique can give no assurance that they will prove to be correct . These forward-looking statements are made as of the date of this press release and Ubique disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.
Neither the Canadian Securities Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.