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| | January 27, 2010
Option of Pine Tree Property
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| | Mosquito Consolidated Gold Mines Limited (the "Company") is pleased to announce that it has entered into an option agreement (the "Option Agreement") with Trans National Minerals Inc. ("TNF") whereby the Company grants TNF an option (the "Option") to acquire a 100% interest in the Pine Tree Copper-Molybdenum property (the "Pine Tree Property"), subject to an underlying 2% net smelter return royalty. TNF is a Capital Pool Company (as defined under the policies of the TSX Venture Exchange) and this transaction shall serve as its Qualifying Transaction (as defined under the policies of the TSX Venture Exchange).
The closing date of the Option Agreement shall be the later of the expiry of the 30 day due diligence period under the Option Agreement and Exchange approval of the Qualifying Transaction (the "Effective Date"). To exercise the Option, TNF will pay the Company $1,000,000 and 5,000,000 common shares over 4 years, payable as follows:
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Cash payment |
Share Issuance |
On the Effective Date |
$200,000 |
1,000,000 common shares |
On or before the first anniversary of the Effective Date |
$200,000 |
1,000,000 common shares |
On or before the second anniversary of the Effective Date |
$200,000 |
1,000,000 common shares |
On or before the third anniversary of the Effective Date |
$200,000 |
1,000,000 common shares |
On or before the fourth anniversary of the Effective Date |
$200,000 |
1,000,000 common shares |
Total |
$1,000,000 |
5,000,000 common shares |
TNF must also incur an aggregate of $3,000,000 in expenditures on the Pine Tree Property on or before the fourth anniversary of Effective Date of the Option Agreement subject to TNF incurring a minimum amount of $500,000 in expenditures each year.
The Option Agreement was approved by the shareholders of the Company, on a disinterested basis, at the Company's annual and special general meeting dated December 9, 2009.
MOSQUITO CONSOLIDATED GOLD MINES LIMITED
Per: "Brian A. McClay"
Brian A. McClay, Director
THE TSX VENTURE EXCHANGE HAS NEITHER APPROVED OR DISAPPROVED OF THE CONTENTS HEREIN.
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