The Company's 75% interest in Mousseau West will be subject to the following additional conditions:
a. in each of the two years following the completion of the acquisition, the Company will be required to complete $200,000 of "Approved Expenditures" (as defined under the policies of the TSX-V), for a total of $400,000 over two years, without any contribution or other payment from the Vendors, and without limiting such obligation and until such time as the Company has obtained a pre-feasibility study on Mousseau West and filed such study on SEDAR, the Company will be responsible for paying any and all costs related to and/or arising from the ownership, management, maintenance in good standing and exploration of Mousseau West (collectively, the "Maintenance and Exploration Costs");b. after the date when a pre-feasibility study on Mousseau West has been filed on SEDAR and delivered to the Vendors, the Vendors will be responsible for paying for the portion of the Maintenance and Exploration Costs that is equal to their ownership interest in Mousseau West, subject to the further requirement that a joint venture be formed to manage and operate Mousseau West;c. the Vendors will be required to provide reasonable cooperation to the Company so as to permit the Company to register its 75% ownership interest in and to Mousseau West on any appropriate registries or records maintained by or on behalf of the Government of Quebec with respect to Mousseau West, such registration(s) to be made at the cost and expense of the Company; andd. with respect to the 25% ownership interest in and to Mousseau West retained by the Vendors (the "Residual Interest"), the Company will hold, and the Vendors will recognize the Company as holding an option to purchase and a right of first refusal over that interest.
Approval of Private Placement
It was a pre-condition to the Company's acquisition of its interest in Mousseau West that the Company raise capital through a private placement. A first closing of this private placement occurred earlier this year, raising proceeds of approximately $317,000, and a second closing was recently completed raising proceeds of $342,600. The total raised through the both closings of this private placement was approximately $659,600 through the issuance of common share units at $0.12 per unit, those units having separated at closing into 5,496,666 common shares and 2,748,333 warrants. The warrants are exercisable for one year at $0.24 per share. All shares and warrants issued in this financing will be subject to a four month hold period
Investors in this private placement include three insiders of the Company: Berthe Lambert, a Vendor and director of the Company who subscribed 350,000 common share units, Martin Lacasse, a director of the Company who subscribed for 420,000 common share units and Martin Lafrance, also a director who subscribed for 200,000 common share units.
Donald Theberge, President of Graniz commented: "Management and the Board are very pleased that shares of Graniz Mondal Inc. are being reinstated on the NEX. Having now acquired an option for an interest in a very interesting graphite property, and having succeeded in raising considerable sums notwithstanding challenging market conditions, the Company looks forward to moving ahead with its exploration plans for Mousseau West."
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
Completion of the acquisition of Mousseau West and of the private placement are subject to a number of conditions, including but not limited to the TSX Venture Exchange'sacceptance. There can be no assurance that the acquisition of Mousseau West and of the private placement will be completed as proposed or at all.
The foregoing information may contain forward-looking statements relating to the future performance of Graniz Mondal Inc. Forward-looking statements, specifically those concerning future performance, are subject to certain risks and uncertainties, and actual results may differ materially from the plans and expectations of Graniz. These plans, expectations, risks and uncertainties are detailed herein and from time to time in the filings made by Graniz with the TSX Venture Exchange/NEX and securities regulators. Graniz does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.