Cartier Resources Aligns with Exploits Discovery for Major Option Deal
Strategic Collaboration between Cartier Resources and Exploits Discovery
Cartier Resources Inc. is making headlines with its recent agreement with Exploits Discovery Corp. This exciting new partnership involves Exploits aiming to secure 100% interests in several promising exploration properties located in Quebec, specifically the Wilson, Fenton, and Benoist projects.
Understanding the Agreement Details
Under the terms of this agreement, Exploits has the exclusive right to earn a 100% interest by fulfilling specific financial obligations. Over a four-year period, they will need to pay Cartier a total of $1,750,000 in cash, issue approximately 9,250,000 common shares to Cartier, and invest no less than $12,250,000 in exploration expenditures related to these properties. This framework sets a solid foundation for the future development of the mineral resources.
Immediate Revenues and Share Issuance
As part of the initial steps in this collaboration, Cartier will receive $200,000 in cash and 1,750,000 common shares shortly after the agreement takes effect. Importantly, all issued shares will be subject to a statutory hold period of four months, ensuring strategic compliance and market stability.
Royalty Structure and Financial Benefits
Upon successfully executing the option for any of the properties, Cartier will obtain a 2.0% net smelter returns (NSR) production royalty. This deal includes some interesting options for Cartier, as one-half of the NSR can be redeemed for a cash payment of $2 million, while the remaining half can be redeemed for a larger sum of $20 million. This dual structure gives Cartier significant financial flexibility moving forward.
A Closer Look at Cartier Resources Inc.
Founded in 2006, Cartier Resources Inc. has established itself in the mining exploration sector, with all its projects located in Quebec, a region acclaimed for its mining opportunities. Cartier's flagship Cadillac project demonstrates the company's commitment to advancing mineral discoveries. With a focus on exploration and valuation of mineral resources, Cartier is well-poised to leverage new partnerships like this one.
Engaging with the Market
By entering this agreement with Exploits Discovery, Cartier not only enhances its exploration portfolio but also underscores its strategic focus on cooperative ventures that can unlock new value. This collaboration reflects the ongoing efforts within the industry to embrace partnership models that allow both companies to thrive amidst the growing demand for mineral resources. The focus on Quebec's robust mining landscape adds significant potential for success.
Future Prospects and Developments
The pathway set by this agreement opens doors to extensive exploration opportunities for both companies. As Cartier Resources continues to develop its strategic objectives, partnerships like these create avenues for exploration, investment, and eventual returns. With rising demand across various sectors for quality mineral resources, the timing couldn’t be better for both parties involved.
Frequently Asked Questions
What are the properties involved in the agreement?
The properties involved are the Wilson, Fenton, and Benoist projects, located in Quebec.
What does the option agreement entail for Cartier?
Exploits Discovery can earn a 100% interest by making certain payments, issuing shares, and investing in exploration activities over four years.
How will Cartier benefit financially?
Cartier will retain a 2.0% NSR production royalty on the properties, enhancing its revenue potential with options for cash redemptions.
When will Cartier receive the initial payments from Exploits?
Cartier will receive $200,000 in cash and 1,750,000 shares soon after the effective date of the agreement.
What is the significance of this collaboration?
This collaboration allows both Cartier and Exploits Discovery to explore and potentially exploit valuable mineral resources, enhancing growth prospects for both companies.
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