Monterey Minerals (CSE: MREY) this morning announced that it has entered into a purchase and sale agreement for four of its souther tenements from its Pilbara gold properties portfolio. The four tenements have been sold to New Age Exploration (ASX: NAE) in exchange for 25 million shares of the Aussie-based issuer.
In addition to the four tenements sold, which total 307 square kilometres in size, the company has issued an option for an additional four tenements, representing an addition 538 square kilometres. The option, which expires in 45 days time, will see 75 million additional shares of New Age Exploration issued to Monterey upon exercise. A further 37.5 million options of NAE are to be issued as well should the option be exercised, with an expiry of three years and an exercise price of $0.02.
A non-refundable fee of $25,000 was paid to Monterey in connection with the granting of the option.
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With New Age Exploration having last traded at $0.013 on the Australian Securities Exchange, it values the initial transaction at approximately $325,000. Likewise, the option, should it be exercised, would have an approximate valuation of $1.0 million based on the closing price of New Age.
Monterey Minerals last traded at $0.065 on the CSE.
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