Calico Resources Corp. (TSXV:CKB) signed a formal agreement to amend its Grassy Mountain Option and at the same time exercised in full its option to acquire the Grassy Mountain Gold Project in south east Oregon, making Calico own a 100% interest in the Grassy Mountain Project, subject to applicable royalties.
As quoted in the press release:
In exercising the Grassy Mountain Option, Calico issued to Seabridge Gold Inc. 6,433,000 common shares and 4,567,000 special warrants. Each special warrant is exercisable for no additional consideration to acquire one further common share. Seabridge may only exercise from time to time that number of Special Warrants such that Seabridge will not at any time own 20% or more of the issued shares in Calico. In the event that there are special warrants unexercised as of the date of the next annual shareholder meeting of Calico (expected to be sometime in December 2013), then Calico is required to ask its shareholders at such shareholder meeting for approval to allow all of the remaining unexercised special warrants to be immediately exercised.
Buck Morrow, the President and CEO of Calico stated:
The exercise of the option is a major milestone for Calico. The Company has managed to substantially reduce the risk in the project and has demonstrated to the permitting agencies and the market that Calico is the 100% owner of the project both now and in the future. Our shareholders should recognize the advantages Calico now has, not only by controlling all aspects of the ownership of the Grassy Mountain Project acquired from Seabridge, but also by holding the substantial property position Calico acquired by staking royalty free claims contiguous to the Grassy Mountain Project.