Black Widow Resources Inc. completed the acquisition of Little Stull Lake gold project in Northern Manitoba from Puma Exploration Inc. for CAD 0.47 million.
May 18, 2021
Share
Black Widow Resources Inc. (TSXV:BWR) signed a non-binding letter of intent to acquire Little Stull Lake gold project in Northern Manitoba from Puma Exploration Inc. (TSXV:PUM) for CAD 0.65 million on July 7, 2016. Black Widow Resources Inc. (TSXV:BWR) signed a definitive agreement to acquire Little Stull Lake gold project in Northern Manitoba from Puma Exploration Inc. (TSXV:PUM) for CAD 0.65 million on October 5, 2016. Under the terms, the consideration to be paid includes a cash payment of CAD 0.15 million of which CAD 0.05 million was deposited due upon signing the letter of intent as well as two other milestone payments of CAD 0.05 million each, payable when Edmund Lake and Kistigan Mineral Exploration Licenses are transferred to Black Widow Resources.
Puma will receive up to 10 million BWR common shares, of which 4.8 million are subject to escrow provisions. 4.8 million of the first 5 million shares will be delivered to Puma upon execution and approval of the definitive agreement to be released in increments over a 36-month period, 0.2 million shares will similarly be delivered as directed by Puma to a finder. The additional 5 million additional securities are to be delivered to Puma as directed by Puma, upon certain exploration and development milestones being met by BWR over the next several years.
As of December 15, 2016, the payment elements of the acquisition agreement for the Little Stull Lake gold project from Puma include cash payments to Puma of CAD 0.2 million, of which CAD 0.05 million has been paid, and the issuance of up to 10 million BWR common shares. On December 12, 2016, BWR Exploration issued 4.8 million shares to Puma Exploration according to the acquisition agreement signed on October 5, 2016. In addition, Puma Exploration will have the first right of refusal to maintain its pro rata interest in Black Widow Resources by investing in future financings of Black Widow Resources. If commercial production is attained at the Little Stull Lake Project, Puma retains a non-buyable 1% of the net smelter value. On October 7, 2019, BWR and Puma agreed to amend the exploration expenditure requirement under the original Sale Agreement by reducing the milestone / penalty payments from 5 million to 4 million common shares of BWR and extending the expenditure term from October 5, 2019 to October 5, 2020. Due to various factors, BWR did not meet the CAD 1.5 million spend requirement by October 5, 2020. Consequently, the remaining 4 million common shares became payable to Puma as of October 5, 2020. Puma agreed to defer this payment until early 2021 and then reached a further agreement with BWR dated May 4, 2021 whereby BWR would issue 2 million common shares to Puma in full and final payment of all remaining consideration payable under the agreement.
Black Widow increased the amount of the non-brokered financing for up to CAD 0.3 million on July 18, 2016. A portion of the financing is related to ongoing investigations as well as agreement preparation pertaining to the non-binding Letter of Intent for the acquisition of the Little Stull Lake Gold project. Puma Exploration will also nominate one director to the Black Widow Resources board of Directors. The transaction is subject to regulatory approval. On December 6, 2016, the transaction is approved by TSX Venture Exchange. The closing date of the transaction has been postponed to January 20, 2017.
Black Widow Resources Inc. (TSXV:BWR) completed the acquisition of Little Stull Lake gold project in Northern Manitoba from Puma Exploration Inc. (TSXV:PUM) for CAD 0.47 million on May 19, 2021.
BWR Exploration Inc. is a Canada-based company, which is engaged in the exploration of precious and base metal properties. The Companyâs projects include Little Stull Lake Gold Project, Shunsby Project and Vendome Sud Project. The Little Stull Gold Property is situated in NE Manitoba. The project comprises 20 staked claims (2,400 hectares) and two mineral exploration licenses (36,000 net ha) surrounding the claims. The property lies in Northeastern Manitoba adjacent to the border with Ontario and 600 kilometers (km) north-Northeast of Winnipeg. The Shunsby Property consists of 20 patented mineral claims (314.4 hectares) located in Cunningham Township, Porcupine Mining Division, in the Province of Ontario. The Vendome Sud Property originally consisted of 49 map designated cells in Fiedmont township within the Abitibi region of Quebec, located approximately 45 km north of the town of Val-DâOr near the town of Barraute, located three kilometers from the northern limits of the property.
Black Widow Resources Inc. completed the acquisition of Little Stull Lake gold project in Northern Manitoba from Puma Exploration Inc. for CAD 0.47 million.