Gespeg Copper Resources Inc.'s shares surged 75% on June 9 after it announced it signed a binding agreement to earn up to a 50% undivided interest in DNA Canada Inc.'s Montauban property in Quebec.
The property comprises 65 mining claims and a mining lease, as well as buildings and other assets.
Under the terms, the company is required to issue 18 million shares in stages. It must also deliver a National Instrument 43-101-compliant report on all existing tailings on the property, secure all the required permits from various government authorities and begin tailings production.
Gespeg will have the right to incur exploration expenditures on the 65 claims during the option period, although it can reimburse half of the costs during the production phase.
The parties will execute a joint venture agreement once Gespeg exercises its option in full. The company will have a right of first refusal covering the sale by DNA of its remaining 50% stake in the property.