Brixton Metals Reduces Royalties at its Thorn Project Through a Purchase Agreement with Kohima Pacific Gold
Brixton Metals (TSX-V: BBB, OTCQB: BBBXF) has announced a Royalty Purchase Agreement with Kohima Pacific Gold to purchase and cancel existing net smelter return royalties on its Thorn Project. The agreement, dated June 17, 2024, eliminates a 2% royalty on the Check-Mate claim and a 3.5% royalty on the Stuart claims. This move is expected to enhance the project's viability. In consideration, Brixton will issue 2,500,000 common shares to Kohima, subject to a hold period of four months and one day. No finder's fees are involved.
- The agreement reduces encumbrances on the Thorn Project by eliminating a 2% royalty on the Check-Mate claim and a 3.5% royalty on the Stuart claims.
- Issuance of 2,500,000 common shares to Kohima is a strategic move to enhance the project's financial viability.
- Issuing 2,500,000 common shares could potentially lead to shareholder dilution.
VANCOUVER, British Columbia, June 20, 2024 (GLOBE NEWSWIRE) -- Brixton Metals Corporation (TSX-V: BBB, OTCQB: BBBXF) (the “Company” or “Brixton”) is pleased to announce that it has entered into a Royalty Purchase Agreement dated June 17, 2024 (the "Royalty Purchase Agreement") with Kohima Pacific Gold Corporation (“Kohima”), a private company, pursuant to which the Company will purchase and concurrently cancel, the outstanding
Chairman and CEO, Gary R. Thompson, stated, “We are pleased to have reached an agreement with Kohima on the purchase of these royalties, further reducing encumbrances and increasing the potential viability of the project. The original Check-Mate mineral claims were centered on the Camp Creek Target area including the near surface high-sulphidation gold-silver-copper mineralization and the porphyry copper-gold-silver-molybdenite mineralization at depth.”
The Company has agreed to issue, subject to the acceptance by the TSX Venture Exchange, an aggregate of 2,500,000 common shares to Kohima in consideration for the purchase and cancellation of the net smelter return royalties all as set out in the Royalty Purchase Agreement.
The common shares to be issued by the Company in accordance with the terms of the Royalty Purchase Agreement will be subject to a hold period of four months and one day from the date of issuance in accordance with applicable securities legislation and TSX Venture Exchange policy. No finder's fees are payable in connection with the transaction.
About Brixton Metals Corporation
Brixton Metals is a Canadian exploration company focused on the advancement of its mining projects. Brixton wholly owns four exploration projects: Brixton’s flagship Thorn copper-gold-silver-molybdenum Project, the Hog Heaven copper-silver-gold Project in NW Montana, USA, which is optioned to Ivanhoe Electric Inc., the Langis-HudBay silver-cobalt-nickel Project in Ontario and the Atlin Goldfields Project located in northwest BC. Brixton Metals Corporation shares trade on the TSX-V under the ticker symbol BBB, and on the OTCQB under the ticker symbol BBBXF.
For more information about Brixton, please visit our website at www.brixtonmetals.com.
On Behalf of the Board of Directors
Mr. Gary R. Thompson, Chairman and CEO
Tel: 604-630-9707 or email: info@brixtonmetals.com
Michael Rapsch, Senior Manager, Investor Relations
Tel: 604-630-9707, Email: michael.rapsch@brixtonmetals.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.
Information set forth in this news release may involve forward-looking statements under applicable securities laws. Forward-looking statements are statements that relate to future, not past, events. In this context, forward-looking statements often address expected future business and financial performance, and often contain words such as “anticipate”, “believe”, “plan”, “estimate”, “expect”, and “intend”, statements that an action or event “may”, “might”, “could”, “should”, or “will” be taken or occur, including statements that address potential quantity and/or grade of minerals, potential size and expansion of a mineralized zone, proposed timing of exploration and development plans, or other similar expressions. All statements, other than statements of historical fact included herein including, without limitation, statements regarding the use of proceeds. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following risks: the need for additional financing; operational risks associated with mineral exploration; fluctuations in commodity prices; title matters; and the additional risks identified in the annual information form of the Company or other reports and filings with the TSXV and applicable Canadian securities regulators. Forward-looking statements are made based on management’s beliefs, estimates and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable securities laws. Investors are cautioned against attributing undue certainty to forward-looking statements.
FAQ
What is the significance of the Royalty Purchase Agreement for Brixton Metals (BBBXF)?
How many shares will Brixton Metals (BBBXF) issue under the Royalty Purchase Agreement?
What royalties are being canceled by Brixton Metals (BBBXF) under the agreement?
When was the Royalty Purchase Agreement between Brixton Metals (BBBXF) and Kohima Pacific Gold signed?
