VANCOUVER, British Columbia, Feb. 26, 2020 (GLOBE NEWSWIRE) — GSP Resource Corp. (TSX-V: GSPR) (the “Company” or “GSP”) and Full Metal Minerals Ltd. (TSX-V: FMM) (“Full Metal”) have entered into an agreement (the “Agreement”) pursuant to which Full Metal has the option (the “Option“) to earn a 60% interest in GSP’s Olivine Mountain property in the Similkameen Mining Division, British Columbia (the “Property”).
GSP holds an option in good standing to acquire a 100% right, title and interest in and to the Property pursuant to the terms of an option agreement dated February 23, 2018 (as amended October 17, 2019 and December 24, 2019) between GSP and Platinum Belt Resources Inc. (the “Underlying Agreement”). Pursuant to the Agreement, GSP covenants to duly complete the exercise of its option pursuant to the Underlying Agreement.
The Option may be exercised by Full Metal (i) incurring exploration expenditures of $500,000 including a minimum $75,000 within 12 months following the date (the “Acceptance Date”) upon which the Agreement is accepted by the TSX Venture Exchange; (ii) making cash payments totaling $500,000 ($75,000 within 12 months of the Acceptance Date); and (iii) issuing 250,000 common shares of Full Metal (70,000 within 12 months of the Acceptance Date), over the four-year Option term.
GSP will be the operator for exploration programs determined by Full Metal. A 10% operator fee will count towards the required exploration expenditures. Following the exercise of the Option, Full Metal and GSP will continue under a joint venture with Full Metal holding a 60% interest and GSP holding a 40% interest.
The Agreement is subject to acceptance by the TSX Venture Exchange.
About GSP Resource Corp.: GSP Resource Corp. is a mineral exploration & development company focused on projects located in Southwestern British Columbia. The Company has an option to acquire a 100% interest and title to the Alwin Mine Copper-Gold-Silver Property in the Kamloops Mining Division, as well as an option to acquire 100% interest and title to the Olivine Mountain Property in the Similkameen Mining Division.
Contact Information – For more information, please contact:
Simon Dyakowski, Chief Executive Officer & Director
Tel: (604) 619-7469
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains “forward‐looking information or statements” within the meaning of applicable securities laws, which may include, without limitation, the TSX Venture Exchange approval of the Agreement, future exploration work on the Property, other statements relating to the technical, financial and business prospects of the Company, its projects and other matters. All statements in this news release, other than statements of historical facts, that address events or developments that the Company expects to occur, are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which the Company will operate in the future, including the price of metals, the ability to achieve its goals, that general business and economic conditions will not change in a material adverse manner, that financing will be available if and when needed and on reasonable terms. Such forward-looking information reflects the Company’s views with respect to future events and is subject to risks, uncertainties and assumptions, including those filed under the Company’s profile on SEDAR at www.sedar.com. Factors that could cause actual results to differ materially from those in forward looking statements include, but are not limited to, continued availability of capital and financing and general economic, market or business conditions, adverse weather conditions, failure to maintain all necessary government permits, approvals and authorizations, failure to maintain community acceptance (including First Nations), increase in costs, litigation, and failure of counterparties to perform their contractual obligations. The Company does not undertake to update forward‐looking statements or forward‐looking information, except as required by law.