The TSX Venture Exchange has accepted for expedited filing documentation pertaining to an option agreement dated Dec. 28, 2017, between Pistol Bay Mining Inc. and 1544230 Ontario Inc. (Perry English, Julie English), pursuant to which the company has the option to acquire a 100-per-cent interest in the Mitchell, Gerry Lake and Karas Lake claim groups, consisting of 33 mineral claims or 232 units, covering approximately 3,700 hectares, located in the Karas Lake area of the Red Lake mining division of Ontario. In consideration, the company will make payments totalling $104,000 and issue a total of 500,000 shares, both in stages as follows:
- Upon exchange approval, $20,000 cash and 300,000 shares;
- Upon first anniversary, $16,000 cash and 200,000 shares;
- Upon second anniversary, $18,000 cash;
- Upon third anniversary, $20,000 cash;
- Upon fourth anniversary, $30,000 cash.
In addition, there is a 1.5-per-cent net smelter return royalty relating to the acquisition. The company may, at any time, purchase 0.75 per cent of the net smelter return royalty for $400,000.
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