TORONTO, ONTARIO--(Marketwire - Nov. 20, 2012) - Mag Copper Limited ("Mag Copper" or the "Company") (CNSX:QUE) announces that it has entered into a letter of intent (the "LOI") with Richmond Minerals Inc. ("Richmond") and Surrey Capital Inc. ("Surrey"), pursuant to which the Company and Richmond (jointly, the "Optionors") have granted Surrey the right to acquire up to a 51% interest in 35 unpatented mining claims located in Hallé Township, Québec (the "Property"). The Property is jointly owned by the Company and Richmond and is subject to a joint venture agreement pursuant to which Richmond is the operator.
Pursuant to the terms of the LOI and Surrey may exercise its option to acquire a 51% interest in the Property in exchange for:
- Total consideration of $20,000 upon issuance of a final bulletin (the "Final Bulletin") by the TSX Venture Exchange (the "Exchange");
- Issuance of an aggregate of 600,000 common shares of Surrey to the Optionors. 200,000 common shares to be issued upon issuance of the Final Bulletin and 600,000 common shares to be issued on or before the first anniversary of the Final Bulletin; and
- By incurring an aggregate of $200,000 of expenditures of the Property within one year from the date of the Final Bulletin.
The Property will remain subject to a 1% Net Smelter Royalty (the "NSR") in favour of the original vendor, however, the Optionors' right to acquire the NSR shall be assigned to Surrey on the same pro-rated terms of the original NSR agreement.
The proposed option is intended to constitute Surrey's "Qualifying Transaction" as that term is defined in Policy 2.4 of the Exchange, conditional upon obtaining all Exchange approval but will not be subject to approval by the shareholders of Surrey. To date, Surrey has been a capital pool company with the business of identifying a qualifying transaction.
This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.