A finder's fee of 888,888 units was paid in connection with this private placement. Each finder unit consists of one common share and one-half of a share purchase warrant, with one whole warrant exercisable into one common share at an exercise price of 13 cents for a period for two years.
All the units and the warrants are subject to a statutory hold period of four months and one day from the issuance date thereof.
The company intends to use the proceeds from the private placement on exploration and for general working capital purposes.
In consideration of the Tay-LP option agreement, Coronet has agreed to pay $10,000 to Long and Associates as well as 150,000 Coronet common shares. Further consideration consists of cash payment of $10,000 by Feb. 3, 2018, and a further $30,000 on or before Dec. 30, 2018, and further cash payments of $60,000 on or before Dec. 30, 2019; $80,000 on or before Dec. 30, 2020; and $160,000 on or before Dec. 30, 2021. Work commitments are $150,000 in 2018, $250,000 in 2019, $500,000 in 2020 and $1-million in 2021. The optionor will retain a 2-per-cent net smelter return upon completion of the terms to acquire 100 per cent of the property, with a preproduction royalty of $20,000 per year paid on or before Dec. 30 of each year. This is repayable to the optionee upon commencement of production and sale of product. In the event the option is cancelled, at any time, the optionee must insure all claims will have at least one year of assessment work or will pay cash in lieu to the optionor.
Finders' fees will be paid in connection with the mineral property option agreement, subject to regulatory regulations.
About Coronet Metals Inc.
Coronet Metals is engaged in the business of acquiring, exploring and developing natural resource properties, with a focus on precious mineral properties/projects that have the potential for both near-term cash flow and significant exploration upside potential. Coronet's White Caps gold project is near the town of Manhattan in Northern Nye county. The project is well in line with its strategy of acquiring precious metal mining projects that have the potential for both near-term cash flow and exploration upside.
The company continues to pursue other near-term, promising high-value gold and silver projects in the area that will augment its 120 patented and unpatented claims in the Manhattan district in Nevada.