Caravan Energy to acquire Rare Earth Properties in British Columbia
by CM staff
The company has agreed to acquire 24 mineral claims.
VANCOUVER — Caravan Energy Corporation has entered into agreements to acquire rare earth TREO properties located near Prince George, British Columbia, comprised of a total of 27 mineral claims and totalling 4,610 hectares.
Pursuant to an agreement with the vendors thereof, the company has agreed to acquire 24 mineral claims in consideration for $100,000 in cash, 4,363,636 common shares of the company, and the grant of a 2 per cent net smelter returns (NSR) royalty. The consideration shares will be subject to a four month and one day hold period pursuant to applicable securities laws and will also be subject to a voluntary leak out schedule whereby they will be released over a 36-month period from the date of closing.
Pursuant a separate agreement with the separate vendors thereof, the company has agreed to acquire three mineral claims in consideration for $100,000 in cash, 1,045,454 consideration shares, and the grant of a 2 per cent NSR royalty (subject to the company’s right to buy-back 50 per cent of the NSR royalty for $500,000). The consideration shares will be subject to a four month and one day hold period pursuant to applicable securities laws and will also be subject to a voluntary leak out schedule whereby they will be released over a 30-month period from the date of closing.
The consideration shares will be issued at a deemed value of $0.52 per share, being the closing price of the Company’s common shares on September 11, 2023.
All the vendors are arm’s length the company, and the closing of the acquisition is subject to customary closing conditions.
