Black Widow ResourcesInc. said July 12 that it signed a non-binding letter of intent to acquirePuma Exploration Inc.'sLittle Stull Lakegold project in Manitoba for C$150,000 and 10 million common shares.
The cash consideration will be paid in three equal tranches,the first C$50,000 of which has been paid to Puma as a deposit, giving Black Widowa 30-day exclusive due diligence period to allow for the evaluation of the projectand negotiation of a definitive agreement.
Puma will be entitled to receive the remaining installments ofC$50,000 each when the Edmund Lake and Kistigan mineral exploration licenses aretransferred to Black Widow.
Meanwhile, the first 5 million Black Widow shares of the deal'sshare consideration will be issued upon the parties' execution of a definitive agreement.The remaining 5 million shares will be issued upon Black Widow's completion of certainexploration and development milestones at the property over the next several years.
Puma will hold a 1% net smelter royalty over the project andwill have the right to nominate one director of Black Widow's board. Puma will retaina 1% non-buyable NSR if commercial production is achieved at Little Stull Lake andthe company will assign its right of first refusal to Black Widow for an underlying1% NSR payable to Tanqueray Resources Inc. that is buyable in its entirety at anytime for C$3 million.
Black Widow is currently raising additional funds to completea thorough due diligence review and planning related to Little Stull Lake's acquisitionand for general working capital.