February 15, 2017
Vanity Capital Inc. has entered into a property agreement to acquire 100% interest in nine claims for sixty-six claim units covering approximately 4,400 acres located in the Phillips Township, Kenora District, Ontario, north of the NewGold’s Rainy River Gold Deposit. The claims cover what was formerly known as the Combined Gold Prospect which covered a historical resource of 240,000 tons grading 0.30 o.p.t. in gold. These reserve estimates are historical in nature, have not been verified by Vanity or its qualified person, and should not be relied upon.
Under the terms of the Agreement, Vanity is required to pay the Vendors $30,000 on acceptance of the transaction by the TSX Venture Exchange. On the first, second and third anniversary of the TSX Venture Exchange acceptance of the Agreement, Vanity is required to pay the Vendors $30,000 and 100,000 common shares in Vanity. On the fourth anniversary of the TSX Venture Exchange acceptance of the Agreement, Vanity is required to pay the Vendors $30,000 and 200,000 common shares in Vanity.
A 1% Net Smelter Return is to be retained by the Vendors. Vanity, at its option, may buy 100% of the Net Smelter Return from the Vendors for the sum of $1,000,000.
The Agreement is subject to the parties obtaining the approval of the TSX Venture Exchange.
The Vendors are arms-length parties to Vanity. No finder’s fee will be paid in connection with entering into the Agreement.
Vanity also has staked seven additional claims (for another 69 claim units) to tie up the surrounding area which covers another three gold prospects along a portion of the Cameron Lake-Pipestone volcanic belt.
Vanity now controls 135 claim units for roughly 5400 acres in geological regime similar to the Rainy River and Cameron Lake deposits. It expects to carry out a field exploration program throughout the summer of 2017 centered on the high-grade gold mineralization found at the Combined Gold Prospect.
For more details on the Phillips Township property acquisition agreement, check out the February 15, 2017 original news release.