LATERAL GOLD CORP. ("LTG")
BULLETIN TYPE: Property-Asset or Share Purchase Agreement, Resume Trading
BULLETIN DATE: April 11, 2013
TSX Venture Tier 2 Company
TSX Venture Exchange has accepted for filing a Letter of Intent between Lateral Gold Corp. (the "Company") and Otis Gold Corp. ("Otis") dated January 2, 2013. The LOI gives the Company the right to earn an initial 70% interest with follow-on options for 100% ownership of certain federal lode claims and Idaho State Leases located in Cassia County, Idaho, collectively known as the Oakley Project (the "Property").
In order to acquire a 70% interest in the Property, the Company must make an aggregate payment of $915,000 cash, issue a total of 4,950,000 shares and spend CDN$5.7 million in exploration expenditures within a 5 year period commencing with Exchange acceptance of the transaction. Payments are as follows:
CASH SHARES WORK EXPENDITURES
Year 1 $165,000 450,000 $300,000
Year 2 $250,000 500,000 $700,000
Year 3 $250,000 1,500,000 $1,300,000
Year 4 $250,000 2,500,000 $1,500,000
Year 5 0 0 $1,900,000
The Company has an additional two options to acquire up to 100% interest in the property. To acquire an additional 10% interest (the "First Option"), the Company must pay Otis an aggregate of $1,500,000 and issue 2,000,000 common shares within a 24 month period, with $500,000 cash and the issuance of 500,000 shares occurring within 90 days of the Company earning its 70% interest.
To acquire the remaining 20% interest in the property (the "Second Option"), the Company must issue an additional 5,000,000 common shares and pay a cash payment based on multiple of any NI43-101 Inferred gold ounces contained in an NI43-101 Technical Report. The Second Option must be exercised within 6 months of the Company acquiring an 80% interest in the property.
For further details please see the Company's news release dated January 11, 2013.
Resume Trading:
Effective at the opening of trading, Friday, April 12, 2013, trading in the shares of the Company will resume trading, an announcement having been made.
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