MISSISSAUGA, ON, June 6, 2018 /CNW/ - JOURDAN RESOURCES INC. (the "Corporation") (TSX-V NEX: JOR.H) is pleased to announce that, further to its March 1, 2018 press release, a first tranche of the Offering will be closed on June 11, 2018.
In preparation of the upcoming shareholders meeting, schedule for June 11, 2018, the Corporation is also pleased to provide additional information on the previously announced non-arm's length assignment agreement (the "Agreement") made effective August 9, 2017, with Fairmont Resources Inc. ("Fairmont") and Frédéric Bergeron ("FB"), wherein Fairmont agreed to assign and transfer its interest in an option agreement (the "Option") to acquire 100% of all right, title and interest in the Rome Lithium property (the "Property"), subject to 2% production royalty in favor of FB of which 1% can be redeemed by the Corporation for a cash payment of $1,000,000, to the Corporation, and the Corporation agreed to purchase such Option from Fairmont on the terms and conditions set forth in the Agreement (the "Acquisition").
The consideration payable by the Corporation in order to acquire the Option, in addition to the $25,000 already paid pursuant to the right of first refusal agreement between the Corporation and Fairmont dated June 22, 2017, consists of a payment of $50,000 in cash, 1,500,000 common shares of the Corporation (each a "Share") and a 2% net smelter return royalty of which 1% can be redeemed by the Corporation for a cash payment of $1,000,000. In addition, the Corporation is required to incur an aggregate of $150,000 in work expenditure on the Property; on or before June 10, 2019. The Corporation would have 37,723,112 Shares issued and outstanding after the issuance of the 1,500,000 Shares upon closing of the Acquisition.
The policies of the TSX Venture Exchange (the "Exchange") requires that the Acquisition be approved by the disinterested shareholders of Corporation pursuant to section 5.7(k) of Exchange Policy 5.3 ("Policy 5.3") as it is a non-arm's length transaction without satisfactory evidence of value, and accordingly the 3,977,080 common share of the Corporation, beneficially own or controlled by Mr. Michael Dehn, who was president, CEO and director of the Corporation and Fairmont when the Agreement was entered into, representing 11.1% of the issued and outstanding Shares, will be excluded from the shareholders' approval resolution.
Lastly, further to the Corporation's August 14, 2017 press release as well as its MD&As for the period ending June 30, 2017, September 30, 2017, December 31, 2017, and March 31, 2018 disclosing the mineral resource estimate for the adjacent North American Lithium Mine, the Corporation inadvertently reported the resource estimate using the 0.6% Li2O cut-off grade where the resource estimate prepared by the QP reports the 0.8% Li2O cut-off grade as the "preferred" and bolded cut-off grade.
About Jourdan Resources
Jourdan Resources Inc. is a Canadian junior mining exploration company trading under the symbol JOR on the TSX Venture Exchange and 2JR1 on the Stuttgart Stock Exchange. The Company is focused on the acquisition, exploration, production, and development of mining properties in lithium. The company's properties are primarily in spodumene bearing pegmatite rich La Corne Batholith, around North American Lithium's producing Quebec Lithium Mine.
Please visit the Company's website at www.jourdanresources.com
Neither the 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.
SOURCE Jourdan Resources Inc.
For further information: Michael Dehn, President and CEO, Tel: (647) 477-2382, Fax: (647) 477-2389, [email protected]