Gespeg Resources Signs Binding Letter of Agreement to Acquire 50% interest in Montauban project from DNA Canada Inc.
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For Immediate Release
Gespeg Resources Signs Binding Letter of Agreement to Acquire 50% interest in
Montauban project from DNA Canada Inc.
Saskatoon, Saskatchewan, June 9, 201 7 - GESPEG COPPER RESOURCES INC.
(TSX-V:GCR) (the “ Company” or “ Gespeg”) announces the signing of a 60 day
binding letter of agreement (the “Agreement”) with DNA Canada Inc. The agreement is
an option to acquire a 50% undivided interest (the “Option”) in the 65 mining claims and
the mining lease all located in the Montauban and Chavigny townships, in the count y of
Portneuf, in the province of Québec (the “Property”) and ii) the buildings, immoveable
and other assets described in Schedule B hereof and located on the Property (the
“Assets”).
1. Terms of the Option
a) The Option shall be exercisable by Gespeg in the following manner:
1. Acquisition of a first 10% interest
Gespeg shall automatically acquire a 10% interest in the Property and Assets by
doing the following:
a) deliver a compliant NI 43 -101 report on all existin g tailings on the Property,
indicating at least inferred resources; and
b) issue to DNA 3,000,000 common shares.
2. Acquisition of a second 15% interest
Gespeg shall automatically acquire an additional 15% interest in the Property and
Assets by doing the following:
a) obtain all the required permits from the various governmental authorities of
the Province of Québec with respect to the Property and Assets; and
b) issue to DNA 5,000,000 common shares.
Press-release 17-02
3. Acquisition of a final 25% interest
Gespeg shall automatically acquire an additional and final 25% interest in the
Property and Assets by doing the following:
a) start production of the tailings;
b) issue to DNA 10,000,000 common shares.
c) Upon the obtaining by Gespeg of an interest in the Property and Assets,
DNA shall ex ecute and deliver to Gespeg a Mining Right Transfer
Form evidencing such transfer of interest from DNA to Gespeg, in the
required form, together with any other document necessary for such
transfer, and Gespeg shall be responsible for paying any statutory o r
administrative fee or duty in relation to such transfer of mining rights
and to the registration thereof.
d) DNA also recognizes that all common shares issued to DNA shall be
subject to a statutory hold period of 4 months and 1 day from the date
of issuance.
e) All operations during the Option period to gain 50% undivided interest
shall be executed by Gespeg, which shall be the sole responsible of all
payments, it being understood that all expenses related thereto shall be
approved by a committee consisting of 2 representatives of Gespeg and
2 representatives of DNA (the “Committee”).
f) DNA also specifically recognizes that Gespeg shall have the right,
subject to prior approval by the Committee, to incur exploration
expenditures on the 65 mining claims of the Property during the
Option period, it being specifically understood that DNA shall
reimburse to Gespeg 50% of such expenditures upon presentation of an
invoice of Gespeg to that effect at the production stage.
g) Once the Option shall have been exercised in full by Gespeg, the
Parties shall execute a joint venture agreement (the “ JV Agreement”)
to govern their relationship.
h) If the Option is exercised in full by Gespeg, Gespeg shall automatically
have a right of first refusal concerning the sale by DNA of its remaining
interest of 50% in the Property and Assets.
The completion of the transaction is subject a number of conditions, including, but not
limited to, the approval of the TSX Venture Exchange and all other necessary approvals.
Additional information on the transaction will be provided in a subsequent news release.
Bernard-Olivier Martel, P. Geo, Director of Exploration of the Company, is a qualified
person (as such term is defined in National Instrument 43 -101 – Standards of Disclosure
for Mineral Projects) and has reviewed and approved the technical disclosure contained
in this news release.
About Gespeg Copper Resources Inc.: Gespeg is an exploration company with a focus
on copper, especially in a grossly underexplored region “Gaspé, Québec”. W ith a
dedicated management team, the Company’s goal is to create shareholder wealth through
the discovery of new deposits.
GESPEG COPPER RESOURCES INC.
(signed) “Sylvain Laberge”
Sylvain Laberge
President and CEO
514.380.5610
514.702.9841
FORWARD LOOKING INFORMATION
Some of the statements contained in this press release are forward -looking statements and information
within the meaning of applicable securities laws. Forward -looking statements and information can be
identified by the use of words such as “expects”, “int ends”, “is expected”, “potential”, “suggests” or
variations of such words or phrases, or statements that certain actions, events or results “may”, “could”,
“should”, “would”, “might” or “will” be taken, occur or be achieved. Forward -looking statements and
information are not historical facts and are subject to a number of risks and uncertainties beyond the
Company’s control. Actual results and developments are likely to differ, and may differ materially, from
those expressed or implied by the forward -looking statements contained in this news release. Accordingly,
readers should not place undue reliance on forward -looking statements. The Company undertakes no
obligation to update publicly or otherwise revise any forward -looking statements, except as may be
required by law.
Neither TSX Venture Exchange nor its Regulations Services Provider (as that term is defined in
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
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