Melkior Resources Inc . (“Melkior ” or the “Company “) is pleased to announce that it has entered into a sale and purchase agreement dated June 25, 2018 (the “Agreement “) with a private Ontario company (the “Purchaser” ), under which it will sell its interest in its Delta Kenty claims located in the Province of Quebec (the “Property “). The Company is the sole legal and beneficial owner of a 49% participating ownership interest in and to the joint venture formed in relation to and governing the Property, under joint venture agreement between (Falconbridge Limited) presently Glencore Canada Corporation and Les Ressources Oasis Inc. dated May 23, 1986, as amended, including the amendment of July 21, 1987 wherein Melkior Resources Inc. acquired its interest.
Under the terms of the Agreement, the Purchaser must pay the Company $600,000 and issue that number of Purchaser common shares, as of July 31 (each a “Purchaser Share “) having an aggregate value of $150,000, with the value of each Purchaser Share to be equal to the price at which the Purchaser completes an equity financing for total gross proceeds of not less than $500,000 within 45 days of completion of the purchase of the Property. If no such financing is closed, the value per Purchaser Share will be $0.50. The Purchaser expects to participate in the next equity flow through financing of Melkior amounting to a total of $100,000 if it takes place within 12 months of closing. It is anticipated that the transaction will close on June 28, 2018.
Melkior is seizing this opportunity to realize value for an asset that requires a team that is familiar with and dedicated to Delta Kenty property. The potential of the Property can still be recognized by Melkior through the retention of shares in the Purchaser. We are excited that this Property will be placed in a new company, and that the Purchaser has the opportunity to bring the property to its full potential.
ON BEHALF OF THE BOARD
Keith James Deluce, CEO
For more information, please contact:
Melkior Resources Inc.