Makenita Resources Enters an Option to Acquire the "Sisson West Tungsten Project" in New Brunswick and the "NTX Rare Earth Project in Quebec"
Executive Summary
- Makenita Resources Inc. entered an option agreement to acquire the Sisson West Tungsten Project (≈4,000 acres) in New Brunswick and the NTX Rare Earth Project (≈9,000 acres) in Quebec.
- The consideration includes a $30,000 cash payment, issuance of 2,000,000 common shares and 1,000,000 warrants at $0.08 per share (payable within 7 business days), plus staggered issuances of additional shares and warrants over the next eight months.
- All issued securities are subject to a standard four‑month hold period; the transaction remains pending mandatory approvals.
Key Details
- Projects Acquired
- Sisson West Tungsten Project: ~4,000 contiguous acres bordering the existing Sisson Tungsten Mine in New Brunswick.
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NTX Rare Earth Project: ~9,000 acres prospective for rare earth elements in Quebec.
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Consideration Structure
- Initial Payment: $30,000 cash to vendor.
- First Issuance (within 7 business days): 2,000,000 common shares + 1,000,000 transferable warrants (exercise price $0.08 per share, three‑year term).
- Second Issuance (within 4 months): 500,000 common shares + 500,000 transferable warrants (same terms).
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Third Issuance (within 8 months): 500,000 common shares (no additional warrants).
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Hold Period: All newly issued shares and warrants subject to a standard lock‑up of four months plus one day.
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Approvals Required: Transaction is conditional upon receipt of all mandatory regulatory and shareholder approvals.
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Management Commentary: President/CEO Jason Gigliotti highlighted the strategic fit of the two critical‑mineral projects for North American supply chain development and noted that with 33 million shares outstanding, the company retains capacity for future growth.
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Qualified Person: Technical disclosure reviewed by Frank Bain, P.Geo., qualified under NI 43‑101.
Notable Quotes
“We are very pleased to acquire two critical mineral projects in Canada… Adding these two projects significantly advances our long‑term goal to maximize shareholder value.” – Jason Gigliotti, President & CEO, Makenita Resources Inc.