Rugby Further Amends the Mabuhay (Motherlode) Option Agreement
12 September 2020 - 5:06AM
Rugby Mining Limited (“Rugby” or the “Company”) (TSX-V:
RUG) announces that it has entered into an amending
agreement (the “Second Amendment”) with All-Acacia Resources Inc.
(“All-Acacia”), for the acquisition of the Mabuhay project. The
Second Amendment reduces and extends the staged payment terms under
the option agreement.
The Second Amendment staged payment terms are as
follows:
Year 1 US$50,000
payable in cash or shares* Year 2 US$50,000 payable in cash or
shares* Year 3 US$50,000 payable in cash or shares* Year 4
US$50,000 payable in cash or shares*
The Company will settle Year 1 staged payment by
paying US$25,000 in cash and issuing an aggregate of 253,326 common
shares at a deemed price of CAD$0.13 per share valued at US$25,000.
The share issuance is subject to TSX Venture Exchange (“TSX-V”)
approval and a four-month hold period.
*The payment terms provide payment of up to
US$25,000 in cash at All-Acacia’s option.
Terms of the Option Agreement
The Company entered into an option agreement
dated July 27, 2010, with subsequent amendments on July 9, 2013,
and February 26, 2019, with All-Acacia pursuant to which the
Company was granted an exclusive option to earn an undivided 80%
right, title and interest in the Mabuhay property (the “Mabuhay
Agreement”).
Pursuant to the Second Amendment to the Mabuhay
Agreement, the Company will pay US$25,000 in cash and will issue
253,326 common shares (subject to TSX-V approval) at a deemed price
of CAD$0.13 per share valued at US$25,000 to settle the Year 1
Payment of US$50,000.
Subsequently, Rugby will pay All-Acacia in
either shares (subject to TSX-V approval) or in cash, subject to
All Acacia’s right to elect to receive up to 50% in cash:
- US$50,000 within 24 months of the Initial Payment;
- US$50,000 within 36 months of the Initial Payment;
- US$50,000 within 48 months of the Initial Payment: and
- a final payment of US$175,000 within 30 days from the grant and
registration of a mineral agreement allowing for development of a
mine.
Please see the Company’s news release dated
March 6, 2019 and October 5, 2010 for more information.
About
Rugby
Rugby is an emerging mineral resource company
focused on a portfolio of projects having considerable potential
for significant mineral discoveries. Rugby benefits from the
experience of its directors and management, a team that has either
been directly responsible for world-class mineral discoveries or
have been part of the management teams responsible for such
discoveries.
For additional information you are invited to visit the Rugby
Mining Limited website at www.rugbymining.com.
Rob Grey, VP, Corporate CommunicationsTel: 604.688.4941 Fax:
604.687.3141Toll-free: 1.855.688.4941 |
Suite 810, 789 West Pender St.Vancouver, BC Canada V6C
1H2info@rugbymining.com |
CAUTIONARY STATEMENT
Certain of the statements made and information
contained herein is “forward-looking information” within the
meaning of the British Columbia, Alberta and Ontario Securities
Acts. This includes statements concerning the Company’s plans at
its projects including progress on obtaining approval for its
exploration concession applications in Colombia, the expected
timing of drilling and/or geophysics programs, prospectivity, high
grade potential and potential for mineral discoveries, the style or
occurrence of the mineralization and drilling costs which involve
known and unknown risks, uncertainties and other factors which may
cause the actual results, performance or achievements of the
Company, or industry results, to be materially different from any
future results, performance or achievements expressed or implied by
such forward-looking information. In addition the Company holds
certain of its projects under option agreements, which require
expenditure and/ or drilling requirements in order to maintain its
interest. Should the Company not be able to meet its obligations or
renegotiate the agreements it will lose its rights under the option
agreement. Forward-looking information is subject to a variety of
risks and uncertainties which could cause actual events or results
to differ from those reflected in the forward-looking information,
including, without limitation, the effect on prices of major
mineral commodities such as copper and gold by factors beyond the
control of the Company; events which cannot be accurately predicted
such as political and economic instability, terrorism,
environmental factors and changes in government regulations and
taxes; the shortage of personnel with the requisite knowledge and
skills to design and execute exploration programs; difficulties in
arranging contracts for drilling and other exploration services;
the Company’s dependency on equity market financings to fund its
exploration programs and maintain its mineral exploration
properties in good standing; political risk that a government will
change, interpret or enforce mineral tenure, environmental
regulations, taxes or mineral royalties in a manner that could have
an adverse effect on the Company’s assets or financial condition
and impair its ability to advance its mineral exploration projects
or raise further funds for exploration; risks associated with title
to resource properties due to the difficulties of determining the
validity of certain claims as well as the potential for problems
arising from the interpretation of laws regarding ownership or
exploration of mineral properties in the Philippines and Colombia
and in the sometimes ambiguous conveyancing characteristic of many
resource properties, currency risks associated with foreign
operations, the timing of obtaining permits to conduct exploration
activities, the ability to conclude agreements with local
communities and other risks and uncertainties, the ongoing effects
of the COVID-19 virus and including those described in each of the
Company’s management discussion and analysis and those contained in
its financial statements for the year ended February 29, 2020 filed
with the Canadian Securities Administrators and available at
www.sedar.com. In addition, forward-looking information is based on
various assumptions including, without limitation, assumptions
associated with exploration results and costs and the availability
of materials and skilled labour. Should one or more of these risks
and uncertainties materialize, or should underlying assumptions
prove incorrect, actual results may vary materially from those
described in forward-looking statements. Accordingly, readers are
advised not to place undue reliance on forward-looking information.
Except as required under applicable securities legislation, the
Company undertakes no obligation to publicly update or revise
forward-looking information, whether as a result of new
information, future events or otherwise.
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
Rugby Resources (TSXV:RUG)
Historical Stock Chart
From Apr 2024 to May 2024
Rugby Resources (TSXV:RUG)
Historical Stock Chart
From May 2023 to May 2024