MONTREAL, QUEBEC--(Marketwired - Jan. 13, 2014) - Synergy Acquisition Corp. (the "Corporation") (CSE:QMP) is pleased to announce the signature of an agreement to acquire 40% of the Massicotte-Est property in the Matagami region of Quebec. The property consists of 172 mineral claims in three blocks covering a total of 9,200 hectares. The three blocks are strategically located over more than 45 km along a zone of major gold-bearing deformations known as the Massicotte structures.
Under the terms of the agreement between the Corporation and the vendor, the Corporation may acquire a 40% interest in the Massicotte-Est property in the Matagami region, in consideration of all costs associated with an airborne survey of the 172 mineral claims, up to a maximum of $80,000. The transaction is subject to regulatory approval.
As Stephane Leblanc, President and CEO of the Corporation is also President and CEO of the vendor, the transaction constitutes a "related-party transaction" within the meaning of Regulation 61-101 respecting the protection of minority security holders in special transactions (the "Regulation"). Mr. Leblanc disclosed his interest as a major shareholder and director of the vendor prior to the start of negotiations between the Corporation and the vendor. All negotiations were conducted between the vendor and the independent directors, acting on the Corporation's behalf. The independent directors also received advice from independent legal counsel and consultants in connection with the transaction.
The transaction is exempt from the valuation and minority shareholder approval requirements because neither the fair market value of the property nor the consideration for the transaction exceeds 25% of the Corporation's market capitalization (Sections 5.5 (a) and 5.7 (1) (a) of the Regulation).
Synergy is targeting Quebec's excellent mineral potential to discover new world-class deposits. Synergy is the ideal partner for exploration companies and capital pool companies looking for qualified transaction projects of merit. Synergy intends to enter into various types of agreements on its properties. Management is currently evaluating other growth opportunities in its portfolio of newly acquired mineral properties to enhance shareholder value in the short term.
This press release contains certain forward-looking statements that involve a number of risks and uncertainties, and there can be no assurance that such statements will prove accurate. As a result, actual results and future events could differ materially from those anticipated in such statements. These risks and uncertainties are described in the annual report and in the filings made by the Company with securities regulatory authorities.
The CSE has neither approved nor disapproved the contents of this press release. The CSE does not accept responsibility for the adequacy or accuracy of this release.