Mr. Harry Miller reports
VANITY SIGNS OPTION AGREEMENT WITH IAMGOLD CORPORATION TO PURCHASE THE PORCUPINE EAST BLOCK
Vanity Capital Inc. has entered into an option agreement with Iamgold Corp. providing for an option to acquire a 100-per-cent interest in Iamgold's Porcupine property in the Duparquet township area of Quebec.
The option is exercisable by Vanity spending a minimum of $1.5-million on exploration expenditures, which is to include the completion of a minimum 5,000 metres of diamond drilling on the property, within 24 months of the option. The option is also subject to Vanity entering into an agreement to acquire an interest in an adjacent property. Upon Vanity vesting its interest, Iamgold would retain a 2-per-cent net-smelter-return royalty.
The option also provides Vanity with the right to renegotiate a pre-existing NSR of 3 per cent held by certain third parties.
The option is subject to Vanity obtaining the approval of the TSX Venture Exchange.
Iamgold is an arm's-length party to Vanity.
Vanity has agreed to pay a cash finder's fee to Loewen, Ondaatje, McCutcheon Ltd. in connection with the option. Five thousand dollars is to be paid on approval of the TSX Venture Exchange and an additional $10,000 on Vanity completing its required exploration expenditures under the option.
The Porcupine property consists of 10 contiguous patented claims covering approximately 153 hectares located in the Duparquet township area of Quebec.
Vanity plans to immediately undertake an initial exploratory drill campaign on receipt of TSX Venture Exchange approval of the option.
We seek Safe Harbor.
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