Canadian explorer Sorrento Resources has signed three purchase agreements to acquire a 100% undivided interest in the mineral licences of the Lord Baron Project in Newfoundland and Labrador.
This deal is set to significantly expand the company’s portfolio in Canada.
The first agreement involves the acquisition of ten mineral licences, known as the Keats-Blackmore Licences, from a consortium including Wesley Keats, Neal Blackmore, Kluane Capital FZCO, CBN Consulting and G2B Gold.
Sorrento Resources will pay $20,000 (C$27,484) in cash, issue four million common shares and grant a 2% NSR royalty to certain vendors.
The second agreement, with Corwin Northcott, will see Sorrento Resources acquire two additional licences, the Northcott Licences, for $17,500 in cash and 200,000 common shares, along with a 2% NSR royalty to Northcott.
The third agreement, with Edge Exploration, relates to the acquisition of one mineral licence.
Sorrento Resources will pay $10,000 in cash, issue 100,000 common shares and grant a 2% NSR royalty on the Edge License to Edge Exploration.
All vendors involved in these transactions are at arm’s length with Sorrento Resources, with no finder's fees payable in connection with the deals.
Completion of the deals is expected by 19 June 2024, contingent upon securing relevant approvals as well as fulfilling customary closing conditions.
The Lord Baron Project comprises 13 individual mineral licences, totalling 226 claims spanning 5,650 hectares.
This project's proximity to historic mines and additional exploration targets underscores the potential for significant expansion and development for Sorrento Resources.
Sorrento Resources director and qualified person Alex Bugden said: “We are very excited to announce this acquisition of properties in such a prospective district with a rich history of mining and exploration.
“The Lord Baron Project has no shortage of exploration targets, and we look forward to leveraging our technical expertise to unlock the full mineral potential for our shareholders.”
