ARCUS DEVELOPMENT GROUP INC. ("ADG")
BULLETIN TYPE: Property-Asset or Share Disposition Agreement
BULLETIN DATE: December 12, 2019
TSX Venture Tier 2 Company
TSX Venture Exchange Inc. (the "Exchange") has accepted for filing documentation in connection with property purchase agreement dated October 22, 2019 (the "Agreement") among Arcus Development Group Inc. ("Arcus"), Goldcorp Kaminak Ltd. ("Goldcorp Kaminak"), a subsidiary of Newmont Goldcorp Corporation ("Newmont Goldcorp"), ATAC Resources Ltd. ("ATAC") and Archer, Cathro & Associates (1981) Limited. Under the terms of the Agreement, Arcus has agreed to sell the Dan Man property to Goldcorp Kaminak (the "Transaction"). The Dan Man property is comprised of 413 quartz mining claims and is located in the White Gold District of Yukon Territory, immediately north and adjacent to the Goldcorp Kaminak Coffee gold project.
In consideration of the sale of its 100% interest in the Dan Man property, Arcus will receive the following from Goldcorp Kaminak:
(i) the return of 14,400,000 Arcus shares originally sold to Newmont Goldcorp in October of 2016 as part of a structured financing;
(ii) a 1% net smelter return royalty interest in any future commercial production from the Dan Man property and Goldcorp. Goldcorp Kaminak will have the right to purchase the royalty interest at any time after the closing of the Transaction for $1,000,000; and
(iii) Goldcorp Kaminak will assume Arcus' obligation to pay a royalty on the Dan Man Property to ATAC.
As a condition of the Transaction, Arcus and Newmont Goldcorp have agreed to terminate an investor rights agreement, dated October 24, 2016 (the "Rights Agreement"). The termination of the Rights Agreement relieves each of Arcus and Newmont Goldcorp of all future rights and obligations, including but not limited to, participation rights in future Arcus financings. The Rights Agreement originally formed part of the October 2016 structured financing.
For further information see the Arcus news releases dated October 23, 2019 and December 3, 2019 which are available under Arcus' profile on SEDAR.
Insider / Pro Group Participation: Newmont Goldcorp is an Insider of Arcus.
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