Nexus Gold Signs LoI with Leocor Ventures
Nexus Gold Corp has entered into a binding Letter of Intent (LoI) with Leocor Ventures Inc, pursuant to which the parties intend to cooperate in the development of the recently acquired Dorset Gold Project, located in the Province of Newfoundland, south of the Pine Cove Gold Mine.
The Letter contemplates a transaction in which Leocor is granted the right to acquire up to a one-hundred percent interest in the Project in consideration for completing a series of cash payments totaling $1,250,000 over a four year term, with a cash payment of $100,000 upon the execution of definitive documentation, and incurring expenditures on the Project of at least $1,500,000 over a five year term.
Leocor will also assume responsibility for a two percent net smelter returns royalty on Project, currently held by United Gold Inc. and Margaret Duffitt.
Alex Klenman is a director and senior officer of both the Company and Leocor, however the proposed transaction is not considered a related party transaction within the meaning of Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions. The Company and Leocor are considered to be "non-arms' length parties" under the policies of the TSX Venture Exchange, and as a result the transaction is subject to review by the TSX Venture Exchange.
Completion of the transaction contemplated by the Letter remains subject to the negotiation of definitive documentation, approval of the independent directors of each of the Company and Leocor, and the receipt of any required regulatory approvals.
