By buying into the underlying owner of the Boleo copper-cobalt project in Baja California Sur, Mexico, International Curator Resources (TSE) has reduced its property costs by $11.6 million.
Curator paid two shareholders of Terratech Environmental $4 million in cash plus 850,000 common shares for a 33.33% interest in the company.
Curator then canceled the interest in return for Terratech’s reducing the cash and expenditure requirements under the original option agreement for Boleo by 33.33%. In addition, Terratech reduced its net underlying revenue interest by 30%.
Under the revised agreement, Curator can acquire a 100% working interest in the Boleo property by paying US$12 million by August 1996, or US$15.7 million by August 1997.
After the purchase option is exercised, Terratech will retain a net revenue interest of 2.1% in years one to three, a 6.3% interest in years four through six and 12.6% thereafter.
To help finance the purchase, Curator arranged a private placement of 500,000 units at $7.50 per unit. Each unit includes one share and half a common share purchase warrant.
After completing the purchase and the private placement, Curator will have about 25 million shares outstanding and roughly $7 million in working capital.
The company is outlining a large, sediment-hosted, copper-cobalt deposit at Boleo, where four drill rigs are in operation.
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