Mr. Jason Cubitt reports
JAXON SIGNS WISHBONE PROPERTY AND ANNOUNCES FINANCING
Jaxon Minerals Inc. has signed a definitive agreement to purchase the Wishbone gold-silver property from vendor Lorne Warren. The 3,900-hectare property is located in western British Columbia, Canada, approximately 30 kilometres southeast of the Nova Gold/Teck-owned Galore Creek property.
The terms of the purchase agreement are as follows:
- $10,000 and 100,000 Jaxon shares on signing;
- $15,000 and 100,000 Jaxon shares on first anniversary;
- $25,000 and 100,000 Jaxon shares on second anniversary;
- $25,000 and 100,000 Jaxon shares on third anniversary;
- $50,000 and 200,000 Jaxon shares on fourth anniversary;
- $50,000 and 200,000 Jaxon shares on fifth anniversary;
- $20,000-per-year advanced royalty payments beginning sixth anniversary;
- 2-per-cent net smelter return royalty with $1-million per 1-per-cent buyout;
- 200,000 Jaxon shares on commercial production.
The company has also arranged a non-brokered private placement of up to five million units at a price of seven cents per unit for gross proceeds of up to $350,000. Each unit will comprise one common share and one common share purchase warrant. Each share purchase warrant will entitle the holder to purchase one common share at 12 cents per share with an expiry date of two years from the closing of the private placement. A finder's fee commensurate with TSX Venture Exchange policies will be paid where applicable.
The funds raised will be used to conduct further review of historical data from the company's Price Creek and Wishbone properties and for general working capital purposes.
The terms of the Wishbone acquisition remain subject to approval by the TSX Venture Exchange.
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