GPM METALS INC. ("GPM")
BULLETIN TYPE: Property-Asset or Share Purchase Agreement
BULLETIN DATE: September 30, 2014
TSX Venture Tier 2 Company
TSX Venture Exchange has accepted for filing documentation relating to a Farm-In and Joint Venture Agreement (the "Agreement") effective May 16, 2014 between Rio Tinto Exploration Pty. Ltd., an arm's length party (the "Vendor") and DPG Resources Australia Pty Limited (the "Subco"), a wholly-owned subsidiary of GPM Metals Inc. (the "Company"). Pursuant to the Agreement, the Company shall acquire the right to earn up to a 75% interest in the Walker Gossan property (the "Property") located in the McArthur Basin Mining District, Northern Territory, Australia.
The Company shall earn an initial 51% interest by paying AUS$1,000,000, incur a minimum expenditure of AUS$2,000,000 over the first three years from the effective date, incur combined expenditures of AUS$20,000,000 over a ten year period from the effective date and meet certain milestone payments.
Following the earning of the initial 51% interest, the Subco and the Vendor shall form a joint venture on the Property. At that time, the Vendor may elect to contribute expenditures to the Property so as to maintain its ownership interest, may elect to not contribute and dilute its ownership interest or may elect to convert its interest into a 2% net smelter returns royalty.
Further, the Subco may increase its interest to 75% by completing a feasibility study on the Property within three years of earning the initial 51% interest.
For more information, refer to the Company's news release dated January 27, 2014.
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