ME Resource Corp. has entered into an agreement to acquire a 70-per-cent
interest in two exploration licenses in the Chagi mineral belt in Baluchistan
province, northwest Pakistan, contiguous to Reko Diq, one of the world's largest
undeveloped copper-gold deposits with disclosed resources of 5.9 billion tons at
0.4 per cent copper and 0.22 gram per tonne gold.
As consideration for the exploration licences the company shall issue 36
million common shares from treasury to the vendors. In addition, 12 million
common shares may be issued as a bonus payment if resource milestones are met. A
cash acquisition payment of $6-million is to be paid to the vendors on or before
Feb. 15, 2012. If the cash payment is not made, the payment will be converted to
long-term debt at a rate of 7 per cent per year and due on or before Feb. 15,
2014, or converted to common shares at the lowest price per share acceptable to
the exchange.
The company will now seek to obtain final exchange and regulatory approval.
Source: stockwatch.com and ME Resource Corp Official Website
