Rocky Shore closes Brady acquisition, grants options

Executive Summary

• Rocky Shore Gold Ltd. completed the acquisition of the Brady property and made the first option payment for the Huxter Lane property.
• The transactions involved significant cash payments and the issuance of common shares to vendors and optionors.
• The company also granted 5.1 million incentive stock options to officers, directors, and consultants.

Key Details

• Brady Property Acquisition:
  • Completed the previously announced purchase agreement.
  • Cash payment of $75,000 made to the vendor.
  • Issuance of 1,000,000 common shares to the vendor.
  • Vendor retains a 0.5% Net Smelter Royalty (NSR), which may be repurchased for $250,000.
  • An underlying 2% NSR exists on the property, which may be repurchased for $1,000,000.
• Huxter Lane Option Agreement:
  • Made the first option payment due under the agreement.
  • Initial payment consisted of $100,000 in cash.
  • Issuance of 2,000,000 common shares to the optionors.
• Share Hold Periods:
  • Shares issued for the Brady property and Huxter Lane option are subject to a four-month-plus-a-day hold period expiring on April 13, 2026.
• Incentive Stock Options:
  • Granted 5.1 million incentive stock options under the omnibus equity incentive plan.
  • Recipients: Officers, directors, and consultants.
  • Exercise price: $0.20 per share.
  • Term: Five years, expiring on December 12, 2030.
  • Vesting: 50% vests immediately; remaining 50% vests on December 12, 2026.
  • Hold Period: The vested options are subject to a four-month hold period from the date of issuance.

Notable Quotes

• Ken Lapierre, PGeo, president and chief executive officer of the company, is a qualified person in accordance with the Canadian regulatory requirements as set out in National Instrument 43-101, and has reviewed and approved the scientific and technical information that forms the basis for the disclosure contained in this news release.