VANCOUVER, BC / ACCESSWIRE / July 7, 2016 / GREAT ATLANTIC RESOURCES CORP. (TSXV: GR) (the "Company" or "Great Atlantic") is pleased to announce that it has signed an option agreement (the "Agreement") with William Mercer ("Mercer") under which Great Atlantic may acquire 100% of Mercer's Golden Promise property (the "Property") in central, Newfoundland & Labrador (the "Transaction").
Under the Agreement, Revolver may earn-in a 100% interest in the Property by making certain staged cash payments and share payments of common shares in the capital of Great Atlantic to Mercer over a four year period equal to a total of $520,000 in cash and such number of common shares equal to $500,000, and work expenditures on the Property of $500,000.
In the event that Great Atlantic exercises the Option and acquires a 100% right, title and interest in and to the Property, Mercer shall thereafter be entitled to a 2% to 2.5% sliding scale gross overriding royalty with respect to the Property (the "Gross Overriding Royalty"), payable upon the commencement of commercial production such that at gold prices less than or equal to USD$1,500 per ounce, the Gross Overriding Royalty is a 2% Gross Overriding Royalty and at gold prices greater than USD$1,500 per ounce, Gross Overriding Royalty is a 2.5% Gross Overriding Royalty. Great Atlantic shall be entitled to buy down 1% of the Gross Overriding Royalty at any time in consideration for the payment of CAD$1,000,000 to Mercer and the sliding scale of the Gross Overriding Royalty shall accordingly be adjusted to 1% and 1.5%, respectively.
In connection with the Transaction, a finder's fee in common shares of the Company in the maximum allowable amount will be paid to Mohan Vulimiri, M.Sc, P.Geo. The finder's fee and the amount is subject to the approval of the TSX Venture Exchange.
On Behalf of the board of directors
"Lorne Mann"
About Great Atlantic Resources Corp.: Great Atlantic Resources Corp. is a Canadian exploration company focused on the discovery and development of mineral assets in Atlantic Canada. Great Atlantic is currently building the company, with a focus on antimony, tungsten and gold.
This news release may contain forward-looking statements including but not limited to the Transaction, comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, execution of the letter of intent and definitive agreement. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such information can generally be identified by the use of forwarding-looking wording such as "may", "expect", "estimate", "anticipate", "intend", "believe" and "continue" or the negative thereof or similar variations. Actual results may differ materially from those currently anticipated in such statements and the Company undertakes no obligation to update such statements, except as required by law. The reader is cautioned not to place undue reliance on any forward-looking information. There can be no assurance that the transaction with Mercer will be successful.
Forward-looking statements are based on the then-current expectations, beliefs, assumptions, estimates and forecasts about the business and the industry and markets in which the Company operates, including that: the current price of and demand for minerals and metals being targeted by the Company will be sustained or will improve; the Company's current exploration programs and objectives can be achieved; the Company will be able to obtain required exploration licences and other permits; general business and economic conditions will not change in a material adverse manner; financing will be available if and when needed on reasonable terms; the Company will not experience any material accident; and the Company will be able to identify and acquire additional mineral interests on reasonable terms or at all. Forward-looking statements are not guarantees of future performance and involve risks, uncertainties and assumptions which are difficult to predict. Investors are cautioned that all forward-looking statements involve risks and uncertainties, including: that resource exploration and development is a speculative business; that the Company may lose or abandon its property interests or may fail to receive necessary licences and permits; that environmental laws and regulations may become more onerous; that the Company may not be able to raise additional funds when necessary; potential defects in title to the Company's properties; fluctuations in currency exchange rates; fluctuating prices of commodities and metals; operating hazards and risks; competition; potential inability to find suitable acquisition opportunities and/or complete the same; and other risks and uncertainties listed in the Company's public filings. These risks, as well as others, could cause actual results and events to vary significantly. Accordingly, readers should not place undue reliance on forward-looking statements and information, which are qualified in their entirety by this cautionary statement. There can be no assurance that forward-looking information, or the material factors or assumptions used to develop such forward looking information, will prove to be accurate. The Company does not undertake any obligations to release publicly any revisions for updating any voluntary forward-looking statements, except as required by applicable securities law.
Neither 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.
Great Atlantic Resource Corp
888 Dunsmuir Street - Suite 888, Vancouver, B.C., V6C 3K4
SOURCE: Great Atlantic Resource Corp.