New Prospect For Manicouagan Minerals
||Gaspé Region of Quebec
||Option Agreement to acquire a 100% interest in 114 mining claims
||Aluminous Clay/Rare Earths
In February 2012, Manicouagan signed an option agreement to acquire a 100% interest in 114 mining claims prospective for Aluminous Clay and Rare Earths in the Gaspé Region of Quebec. The eastern block of 101 claims is adjacent to Orbite Aluminae Inc.'s ("Orbite") Grande-Vallée property and on strike with its Marin deposit. The remaining claims are on strike to the west of Orbite's property.
The claims cover approximately 17 kms of the favourable argillite formation that hosts the Marin deposit. The boundary of the eastern Cloridorme block is approximately 1 km from the Marin deposit (Metallurgical Grade Alumina Project).
Terms of the agreement are:
- An initial payment of $50,000 and 1.5 million shares;
- $50,000 and 1.5 million shares by October 30, 2012;
- $400,000 on or before October 30, 2013. Manicouagan has the option to pay up to $300,000 of this amount in common shares. The price per share will be based on the volume weighted average trading price for the 10 trading days immediately preceding October 30, 2013;
- Complete $200,000 of exploration on the property prior to October 30, 2012.
Once 100% interest in the claims is earned, Manicouagan will grant the optionor a royalty, equivalent to a 2% net smelter return ("NSR"). Manicouagan has the right to purchase 100% of the NSR at any time for $1 million.