Subject: CON
DNA Canada Inc. signs option agreement with Osisko Metals Inc.
MONTRÉAL, Dec. 12, 2018 /CNW/ - DNA CANADA INC. (the "Company" or "DNA"), announces the execution of an option agreement with Osisko Metals Inc. for the base metals exploration on the Montauban project. All claims and work related to the tailings project are excluded from this option
DNA hereby grants to Osisko Metals the sole and exclusive right and option (the "Option") to earn and acquire an 80% legal and beneficial interest in and to the Property. The Parties hereby acknowledge and agree that the Option herein granted to Osisko Metals is granted for purposes to affect Base Metals Discoveries only. If a Precious Metals Discovery is made, Osisko Metals will have the right and option to acquire a 20% interest in such Precious Metals Discovery.
In order to exercise the Option (and to maintain the Option in good standing during the Option Period), Osisko Metals Inc. shall proceed as follows:
Osisko Metals Inc., as Operator, shall perform exploration work on the Property and shall incur the following minimum Expenditures per year in the aggregate amount of $2,500,000 (the "Qualifying Expenditures") in accordance with approved Programs and Budgets in respect of a period:
(A) | $500,000, on or before the 1st year anniversary of the Effective Date; |
(B) | $750,000, on or before the 2nd year anniversary of the Effective Date; |
(C) | $1,250,000, on or before the 3rd year anniversary of the Effective Date; and |
(D) | Participate in the financing of a public company or an entity designated by DNA that is or will be the owner of the Property as one of the lead orders in an amount between $200,000 to $250,000 to further the development of the Property and DNA corporate objectives (the "DNA Offering") |
A management committee will be established for purposes of reviewing, developing and agreeing in relation with the work programs. The committee will consist of four members two from each Party.
Peter Comito President and CEO comments, "We are pleased to have Osisko Metals option our project for base metals, this will help the development of the Montauban Region. In addition this will allow DNA to concentrate its effort towards the production of the tailings project."
SOURCE DNA Canada Inc.
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