In This Article:
Vancouver, British Columbia--(Newsfile Corp. - May 5, 2025) - Sonoran Desert Copper Corporation (TSXV: SDCU) ("SDCU'' or the "Company") is pleased to announce that the Company has signed an option agreement (the "Purchase Option Agreement") dated May 2nd 2025, to acquire a 100-per-cent interest in the Bahia Manganese Project and the Rio Claro Titanium Project (collectively, the "Brazil Projects"). The Bahia Manganese Project is 896.61 hectares in Goias, Brazil and the Rio Claro Titanium Project is 1005.12 hectares in Bahia, Brazil.
Transaction Details
The Brazil Projects are being optioned from Beko Invest Ltd ("BEKO").
This Purchase Option Agreement shall terminate if SDCU fails to advance the required cash and share payments to BEKO as per the following within the time limit as follows:
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if SDCU fails to advance US$20,000 as a down payment on execution of this Option Agreement and advance US$30,000 and issue to BEKO 4,000,000 common shares of SDCU within ten days of receipt of TSX Venture Exchange Approval;
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if SDCU fails to advance US$75,000 and issue to BEKO a further 2,000,000 common shares of SDCU on or before the six-month anniversary date of Exchange Approval; and
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if SDCU fails to advance US$75,000 and issue to BEKO a further 2,000,000 common shares on or before the twelve-month anniversary date of Exchange Approval.
SDCU agrees to grant BEKO a two percent (2%) Net Smelter Royalty against the Brazil Projects upon the successful exercise of the Option as detailed above.
The common shares issued to BEKO by SDCU under the terms of the Purchase Option Agreement, will be subject to a four-month statutory hold period which will begin on the date of issuance of the common shares.
The Parties are evaluating further energy materials assets in Brazil that may fall under this Purchase Option Agreement.
Closing Conditions
The execution of the Definitive Agreements will be subject to the following conditions:
(a) Each Party obtaining all necessary and appropriate governmental, regulatory, contractual, board of director, shareholder, member and other third-party licenses, permits, approvals and/or consents which are required to execute the Definitive Agreements.
(b) SDCU obtaining TSX Venture Exchange approvals for the transaction.
(c) Such other necessary and appropriate conditions as the parties shall mutually agree.
Chromite Project LOI
Further to the News Release dated December 6, 2024, the Company has elected not to proceed further with the Chromite Project LOI. The Company did not make any payments related to the LOI.