TORONTO, ONTARIO--(Marketwire - Jan. 21, 2013) - Mag Copper Limited ("Mag Copper" or the "Company") (CNSX:QUE) announces that it has recently entered into a mining claim acquisition agreement (the "Agreement") with Northern Skye Resources Ltd. ("Northern") pursuant to which the Company has been granted an 80% interest (the "Interest") in certain mining claims located in Hebecourt Township, Quebec (the "Property").
Pursuant to the terms of the Agreement the Company has acquired the Interest in exchange for: (i) 8,000,000 common shares in the capital of the Company; (ii) an aggregate payment of CDN$2,000,000 payable in 2 installments of CDN$1,000,000 (the first installment payable immediately upon commercial production on the Property and the second installment payable twelve (12) months following commercial production on the Property); and (iii) a 2% net smelter return royalty in favour of Northern, subject to the Company's right to re-acquire a 1% net smelter return royalty upon payment of CDN$1,000,000 to Northern. Further, Northern has granted the Company an option to purchase the remaining 20% interest in the Property for a one-time payment of CDN$2,500,000 at any time.
In addition, pursuant to the terms of the Agreement certain directors have agreed to resign from the board of directors of the Company (the "Board") resulting in the Board being comprised of 2 nominees of Northern, 2 nominees of the Company and one independent nominee selected by mutual consent of Northern and the Company. Messrs. John Cullen and David Reid have agreed to resign from the Board and Messrs. Terry Loney, John Carter and Dan Weir have agreed to be appointed as directors of the Company.
This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.