Nortec Minerals Corp. said March 8 that it signed a letter of agreement with privately held Utah Mineral Resources LLC to acquire the Cottonwood vanadium-uranium project in Utah.
Under the deal terms, Nortec will issue 4 million fully paid shares at a deemed price of 5 U.S. cents apiece for a total of US$200,000.
Utah Mineral Resources is also entitled to receive a 1% net smelter royalty on any production from Cottonwood, while Nortec will have the right to repurchase 0.5% of the NSR for US$500,000 by the fifth anniversary of the deal's closing.
The Cottonwood property comprises 736 hectares of contiguous mining lode claims within Township 32 South, Ranges 11 and 12 East. The claims are located on federal land and administered by the U.S. Bureau of Land Management.