VANCOUVER, BRITISH COLUMBIA–(Marketwired – June 7, 2016) – Vatic Ventures Corp. (the “Company” or “Vatic“) (NEX:VCV.H)(FRANKFURT:V8V) is pleased to announce that it has entered into an assignment and purchase agreement (the “Agreement“) to acquire 80% of the issued and outstanding shares (the “Shares“) of Saksrithai Development Co. Ltd. (“Saksrithai“), a Thailand company which holds two special prospecting licenses (“SPLs“) for the exploration of potash.
The two licenses, which are contiguous, are located in the northern Thailand province of Nakkon Ratchasinna and comprise an area of approximately 32 km2. The property is located in the western part of the Khorat Basin in the Khorat Plateau which contains a large evaporate basin of Cretaceous age.
Pursuant to the Agreement the Company is acquiring the rights of Red Branch Investments Ltd. a Hong Kong incorporated company (“Red Branch“) to acquire the Shares pursuant to a memorandum of understanding entered into among the holders of the Shares of Saksrithai (the “Saksrithai Shareholders“), Saksrithai and Red Branch dated February 26, 2016 which is in the process of being superseded by a share purchase agreement (the “Underlying Acquisition Agreement“). In accordance with the terms of the Underlying Acquisition Agreement, as assigned to the Company, the Company has the right to purchase the Shares by paying the Saksrithai Shareholders THB 8,000,000 (8,000,000 Thai Baht, the currency of Thailand, which equates to approximately US$220,000). The Underlying Acquisition Agreement also provides that subsequent to Red Branch or its assigns purchasing the Shares, Red Branch or its assigns will fund a THB 50 million (approximately US$1.4 million) first stage exploration and development program which will include sufficient funding to satisfy work and expenditure commitments under the SPLs, to pay the Thailand project expenses and funding for general and administrative expenses in Thailand and Canada. In the event that the full amount of THB 50 million is not expended the Saksrithai Shareholders will be entitled to a cash payment of 20% of the unspent balance,
As consideration for the Agreement, the Company will issue 5.2 million common shares to Red Branch plus a 1% NSR on the property. The NSR can be purchased by the Company at any time for US$1 million.
Upon closing of the transaction Gerry Wright, the principal of Red Branch, will be joining the board of directors of the Company. Mr. Wright is a Professional Engineer and holds a Doctorate in Engineering from Queen’s University, Belfast. He has over 30 years’ experience in the minerals exploration and development industry in Asia, North America, Europe and Africa, serving as a Senior Officer and Director of a number of public and private companies. He has extensive experience and knowledge of the potash resources underlying Thailand’s Khorat Plateau and the regional potash industry. As CEO of Asia Pacific resources Ltd., he was directly responsible for acquisition, financing and development of Asia’s most significant potash discovery.
The Company also announces a unit private placement financing of up to $1 million consisting of up to 10 million units, with each unit being comprised of one common share and one share purchase warrant exercisable for 2 years at a price of $0.15 (the “Financing“). Up to $100,000 of the Financing will be distributed pursuant to BC Instrument 45-536 and used for the proposed acquisition with the remainder to be distributed under other exemptions and used for the proposed acquisition and working capital purposes. There is no material fact that has not been generally disclosed.
Upon completion of the proposed acquisition and Financing the Company expects to be reinstated to the TSX Venture Exchange. The transaction is subject to TSX.V regulatory approval.
ABOUT VATIC VENTURES CORP.
Vatic Ventures Corp (www.vaticventures.com) is a junior exploration company and continues to assess new opportunities and prospects.
|ON BEHALF OF THE BOARD|
|Nasim Tyab, Chairman and CEO|
|Vatic Ventures Corp.|
NEITHER THE NEX BOARD OF 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.