- Following a letter of intent signed on October 5, Renegade Exploration (RNX) has completed the sale of its Yukon Project to Scharfe Holdings
- Scharfe will pay a total of $1.65 million to acquire Renegade’s subsidiary Overland Resources Yukon Limited, which holds a 90 per cent stake in the project
- Scharfe is also required to assume C$500,000 (roughly A$526,000) in exploration and development expenses before December 31, 2021
- Upon full completion of the payment, Renegade will retain a 1 per cent royalty on the Yukon Project, which may be purchased by Scharfe for $1 million
- Shares in Renegade Exploration remain suspended and last traded at a price of 0.7 cents each on December 3
Following a letter of intent signed on October 5, Renegade Exploration (RNX) has completed the sale of its Yukon Project to Scharfe Holdings.
Located within the highly prospective Selwyn Basin in Canada’s Yukon Territory, Renegade’s subsidiary Overland Resources Yukon Limited holds a 90 per cent stake in the project, which covers 350 square kilometres and consists of more than 1,500 mineral claims.
Included on the property is the high-grade Andrew Zinc Deposit, Darcy Zinc Deposit and Darin Zinc Deposits, along with a number of other highly prospective target areas such as the Myschka copper-gold target, Scott zinc-lead target, Riedell base metal target, and a large area of unexplored land.
In accordance with the purchase agreement, Vancouver-based investment advisory group Scharfe will acquire Overland Resources for a total of $1.65 million in cash. $250,000 of this amount has already been received, while a further $300,000, $400,000 and $700,000 will be paid on the 12, 24 and 36-month anniversaries of the sale, respectively.
Scharfe will also be required to assume C$500,000 (roughly A$526,000) in exploration and development expenses on the Yukon Project by December 31, 2021.
Upon completion of the final payment, Renegade will retain a 1 per cent net smelter royalty on the project, subject to commercial production being achieved, which may be purchased by Scharfe for a one-off fee of $1 million.
With the sale complete, Scharfe will now assume operatorship of the Yukon Project and will be responsible for the maintenance of all permits.
However, should Scharfe fail to meet any of the required cash payments by the due date, the transaction will be terminated and Renegade will be entitled to retain ownership of the project.
Shares in Renegade Exploration remain suspended and last traded at a price of 0.7 cents each on December 3.