Sanatana Announces Secured Promissory Note and Provides Notice of Exercise to Acquire a 60% Undivided Interest in the Oweegee Dome Porphyry Copper-Gold Project, Located in BC's Golden Triangle
Rhea-AI Summary
Sanatana Resources (TSXV: STA) has secured a $200,000 promissory note from an arm's length lender, bearing 10% annual interest with monthly payments and maturing on December 31, 2025. The loan proceeds will fund the final option payment to acquire a 60% interest in the Oweegee Dome Project from ArcWest Exploration.
The company has successfully completed all required payments, share issuances, and exploration expenditures (approximately $7.2 million) under the Option Agreement, exceeding requirements by $600,000. Sanatana will become the initial operator of the Joint Venture with ArcWest (60-40 split). Both parties have 90 days to negotiate and finalize the joint venture agreement.
Positive
- Secured 60% ownership in Oweegee Dome Project
- Successfully completed all option agreement requirements
- Exceeded required exploration expenditures by $600,000
- Appointed as initial operator of Joint Venture
Negative
- Took on $200,000 debt at 10% interest rate
- Monthly interest payment obligations through December 2025
- Loan includes acceleration clause if company raises $800,000
News Market Reaction – SADMF
In the trading session that priced this news, SADMF gained 314.29%, reflecting a significant positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
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Vancouver, British Columbia--(Newsfile Corp. - December 31, 2024) - Sanatana Resources Inc. (TSXV: STA) ("Sanatana" or the "Company") has entered into a secured promissory note with an arm's length party (the "Lender") dated December 30, 2024, pursuant to which the Lender provided a secured promissory note (the "Loan") to the Company in the principal amount of
The Loan is secured and bears interest at the rate of
The proceeds from the Loan are being used by the Company to satisfy the final option payment for the Company to exercise, and acquire, a
Option Agreement
Sanatana has provided notice to ArcWest that within the time periods specified by the Option Agreement that Sanatana has made the required payments, Common Share issuances, and incurred the required exploration expenditures to earn, without any further act, the Initial Interest (as such term is defined in the Option Agreement, being a
Sanatana has elected not to proceed with the Second Option (as such term is defined in the Option Agreement) and accordingly the Joint Venture will be formed as follows: a
Pursuant to the terms of the Option Agreement, Sanatana and ArcWest are now required to negotiate in good faith and use all reasonable efforts to enter into the joint venture agreement within 90 days from the date hereof.
Sanatana will be the initial operator of the Joint Venture given that it holds a
Subject to final accounting, Sanatana estimates that it incurred expenditures under the terms of the Option Agreement aggregating approximately
Other Terms of the Loan
The Loan is not convertible into equity or voting securities of the Company or a subsidiary of the Company or otherwise participating in nature. No finder's fee or commission has been or will be paid in connection with the Loan. No bonus is to be paid.
The Loan is subject to acceleration if the Company raises
Pursuant to section 1.2(b) of TSX Venture Exchange ("TSXV") Policy 5.1 - Loans, Bonuses, Finder's Fees and Commissions, the Company will make a notice filing with the Exchange with respect to the Loan.
About the Company
Sanatana Resources Inc. is a mineral exploration and development company focused on high-impact properties in Canada. With an award-winning technical team and experienced management and board of directors, Sanatana is based in Vancouver and is listed on the TSX Venture Exchange (TSX-V: STA).
SANATANA RESOURCES INC.
(signed) "Peter Miles"
Peter Miles
Chief Executive Officer
For additional information on the Company, please contact Mr. Peter Miles, Chief Executive Officer at (604) 408-6680 or email investor@sanatanaresources.com.
To be added to the email distribution list, please email ir@sanatanaresources.com with "Sanatana" in the subject line.
Cautionary Statement Regarding "Forward-Looking" Information
Mineralization hosted on adjacent, nearby or geologically similar properties is not necessarily indicative of mineralization hosted on the Company's properties.
This news release includes "forward-looking statements" and "forward-looking information" within the meaning of Canadian securities legislation. All statements included in this news release, other than statements of historical fact, are forward-looking statements, including, but not limited to, Sanatana's final accounting of expenditures it occurred in connection with the Option Agreement and the application of the excess expenditures to the Joint Venture.
Forward-looking statements and information can be identified by the use of words such as "plans", "seeks", "expects", "intends", "is expected", "potential", "suggests" or variations of such words or phrases, or statements that certain actions, events or results "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements and information are not historical facts and are subject to a number of risks and uncertainties beyond Sanatana's control including, but not limited to, regulatory approval for the Loan. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this news release. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements, except as may be required by law.
Neither TSX Venture Exchange nor its Regulations Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/235709