New Break increases Moray property size

Executive Summary

• New Break Resources Ltd. has expanded its Moray property footprint by acquiring approximately 4,719 hectares and staking 473 hectares of mineral claims to the west and northwest of its main Moray project.
• The acquisition involves two arm's-length vendors who will receive $20,000 in cash and 500,000 common shares, subject to an escrow arrangement and regulatory approval.
• The company explicitly rejected staking nearby claims held by another public company, citing lack of geological potential and avoiding unnecessary holding costs.

Key Details

• Total Land Acquired: Approximately 5,192 hectares total.
  • Acquired Claims: 4,719 hectares purchased from two arm's-length individuals.
  • Staked Claims: 473 hectares comprising 22 single-cell mineral claims acquired from the Ontario Ministry of Mines for $1,100.
• Transaction Consideration:
  • Cash: $20,000 paid to vendors.
  • Equity: 500,000 common shares of New Break issued to vendors.
  • Royalty Status: The acquired claims are royalty-free.
• Escrow Terms:
  • 50% of the consideration shares released 4 months and 1 day following closing.
  • 50% of the consideration shares released 6 months following closing.
  • Cash and share issuances are split 50/50 corresponding to vendor ownership percentages.
• Regulatory Status: The acquisition is subject to approval by the Canadian Securities Exchange.
• Strategic Context: The acquisition bridges the gap between the main Moray property and existing claims to the west, expanding the footprint to the northwest. The company believes this area holds geologic potential for additional discoveries similar to the recent gold discovery in the Zavitz zone.
• Competitor Activity: New Break declined to stake claims to the north and east of Moray that were recently staked by another public company, determining they lacked the necessary geology and structures for economic orebodies.

Notable Quotes

• Michael Farrant, President: "This property acquisition bridges the gap that existed between our main Moray property and many of the mineral claims that we own to the west of Moray and expands our property footprint to the northwest of Moray... Over all, we believe that New Break's property position to the west and northwest of Moray, holds the geologic potential for additional mineral discoveries in addition to our recent gold discovery in the Zavitz zone at Moray."