Executes Definitive Agreement to Acquire 100% of the Max Resource Corp. Gachala Copper Project North Block
Universal Copper Ltd. (UNV.V) entered into an asset purchase agreement with MAX Resources Corp. (MXR.V) and Gachala Columbia Corp. to which the Company will acquire a 100% interest in the 7 mineral license applications comprising the North Block of MAX's Gachala Copper Project, 60 km east of Bogota, Colombia.
Under the terms of the Asset Purchase Agreement, the Company will issue to MAX in exchange for the Claims, 6,000,000 common shares of the Company, having an approximate value of $600,000 based on the current trading price of the Company's common shares on the TSX Venture Exchange. The closing of the Asset Purchase Agreement is subject to customary closing conditions including the receipt of third party and regulatory approval, the receipt of a satisfactory title opinion and the approval of the TSX Venture Exchange. Once issued, the 6,000,000 common shares will be subject to a hold period of four months and a day from the date of issuance.
On the closing of the Asset Purchase Agreement, the Company will have approximately 41,977,275 common shares issued and outstanding. The Company anticipates that, as a result of the Transaction, MAX will own 14.3% of the issued shares and will become an insider of the Company. The Transaction is an arm's length transaction. No finder's fees will be paid in connection with the Transaction.
Subject to the completion of the transaction, the Company intends to spend approximately $50,000 on its first phase exploration at Gachala. The Company also intends to spend approximately $275,000 on a drill program at its Poplar project.
For additional information, please visit the Company's website at www.universalcopper.com