Unigold Inc. (TSXV:UGD) has sold its option to acquire 100% of the El Carrizal concession in the Dominican Republic to Terreno Resources Corp. for a total of 11.5-million common shares and cash payments totalling $1,000,000. The El Carrizal concession is 13,150 hectares and lies between Unigold’s western Neita Concession and the eastern Sabaneta Concession and is contiguous with both.
As quoted in the press release:
As consideration for the purchase of the option, Terreno will issue to Unigold a total of 11.5-million common shares and make cash payments totaling $1,000,000. An initial $50,000 cash payment is due immediately with the 11.5-million common share issuance and a further cash payment of $250,000 is due on the exercise of the option by Terreno. Two further cash payments of $350,000 will be due on the 12 and 24 month anniversary of the date Terreno exercises the option. In addition, Unigold will be granted a 2% net smelter returns royalty, of which half (leaving Unigold with a royalty equal to 1% of net smelter returns) can be repurchased by Terreno for USD 1,000,000. Unigold will be entitled to receive an additional 5,000,000 common shares of Terreno in the event that 2,000,000 ounces of gold are delineated on the property by Terreno on a National Instrument 43-101 compliant basis, in any category of resource. All such common shares of Terreno which may be issued to Unigold pursuant to the Agreement will be subject to a hold period which will run for a period of four months from the time of the issue of such common shares.