X-Terra, Brownstone Complete Quebec Lowlands Gas Shale Farm-Out
X-Terra and Brownstone Ventures have received confirmation from the Ministere des Ressources Naturelles
et de la Faune of the Province of Quebec that the final permits for the exploration licenses for petroleum and natural gas on its shale properties located in the Quebec Lowlands (namely, Shawinigan, Rimouski and Rimouski North) have been received and the parties have now completed the previously announced acquisition by Brownstone of a 50% interest in the Quebec Shale Licenses.
Pursuant to the assignment agreement dated June 10, 2008, Brownstone issued 2,000,000 common shares and 2,000,000 common share purchase warrants to X-Terra. Each warrant entitles X-Terra to purchase one common share of Brownstone at a price of $2.00 per share until October 28, 2010. The common shares, warrants and common shares underlying the warrants are subject to a four month hold period expiring on March 1, 2009.
Subsequent to the transfer of the 50% interest in the Quebec Shale Licenses, X-Terra and Brownstone will entered into an operating agreement pursuant to which Brownstone shall become the operator of an exploration program for the territory covered by the Québec Shale Licenses. In connection with this transaction, X-Terra will issue, subject to regulatory approval, 150,000 units to PowerOne Capital Markets Limited of
Toronto, Ontario, as a finder's fee. Each unit will be comprised of one common share of X-Terra and one common share purchase warrant. Each warrant will entitle PowerOne to purchase an additional common share of X-Terra for a period of two years at a price of $1.50 per share. Under applicable securities legislation and policies of the TSX Venture Exchange, the common shares and warrants issued in connection with this transaction will be subject to a four months hold period.
The Quebec Shale Licenses cover a total of 159,991 hectares in the Quebec Lowlands.
- Brownstone Ventures Takes New Name (Jan 17)
- Quetzal Starts Seismic Survey in Colombia, Updates Guatemala Ops (Jan 10)
- Quetzal Discovers Oil in Canaguaro Block (Nov 22)