Brionor Resources Inc.
TSX VENTURE : BNR

Brionor Resources Inc.

June 15, 2015 09:18 ET

Brionor Announces LOI With Wealth Minerals for Option of Noyell Property

TORONTO, ONTARIO--(Marketwired - June 15, 2015) -

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Brionor Resources Inc. ("Brionor" or the "Company") (TSX VENTURE:BNR) is pleased to announce that it has executed an LOI with Wealth Minerals Limited. ("Wealth") - (TSX VENTURE:WML), granting Wealth the exclusive option to acquire up to 100% of the Noyell Property (the "Property" or "Noyell") through issuance to Brionor of Wealth common shares valued at $850,000 over four years. The Property is contiguous with Wealth's N2 property in the Matagami region of Western Quebec Wealth now has 30 days to complete due diligence and finalize the formal option agreement.

Transaction Details

Wealth may earn up to a 100% interest in three option stages through issuance of common shares valued at $850,000 over four years (Table 1). The Option does not require any cash payments and there are no exploration work commitments.

If Wealth exercises the first option and acquires the initial 49% interest but thereafter elects not to exercise the second option for 26%, then the Option will terminate and Brionor will have an option (the "Re-Purchase Option") to acquire Wealth's 49% interest through the issuance of Brionor common shares valued at $75,000 (50% of the value paid by Wealth to exercise the first option). If Brionor does not exercise the Re-Purchase Option, Wealth and Brionor will be deemed to have formed a 49:51 joint venture.

If Wealth exercises both the first and second options and thereby acquires an aggregate 75% interest but does not exercise the third option to acquire the balance of Brionor's interest, then the Option will terminate and Wealth and Brionor will be deemed to have been formed a 75:25 joint venture. There is an existing 3% NSR royalty on the Noyell property payable to a third party.

Table 1: Acquisition Terms
Stock Ownership
TSXV Acceptance $ 50,000*
Phase I One Year Anniversary $ 50,000 49 %
Two Year Anniversary $ 50,000
Phase II Three Year Anniversary $ 200,000 26 %
Phase III Four Year Anniversary $ 500,000 25 %
$ 850,000 100 %
* The stock issuance upon TSXV acceptance is a firm commitment. All other stock issuances are optional. Value is based upon the 20 day VWAP on the TSXV prior to the date of issuance.

The grant of the Option by Brionor is subject to the settlement and execution of a formal option agreement and the acceptance for filing thereof by the TSXV on behalf of Wealth.

Lew Lawrick, President & CEO of Brionor commented; "We are pleased to undertake this transaction with Wealth unifying Noyell with Wealth's N2 property. The consolidation of this area provides Wealth with an expanded footprint to potentially extend gold mineralization over a strike length of 12 kilometers. Receipt of Wealth common shares allows Brionor to participate in this expanded exploration opportunity as well as the other exciting corporate development initiatives Wealth is undertaking elsewhere in its portfolio."

Brionor is a junior mining exploration company with a portfolio of exploration projects in Québec.

Neither 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.

Contact Information

  • Brionor Resources Inc.
    Lewis Lawrick
    President & CEO
    647-478-5307

    Brionor Resources Inc.
    Robert Ayotte
    Executive Chairman
    450-441-9177
    info@brionor.com