Stronghold Metals Inc. clarified that it has entered into an agreement (the “Consulting Agreement”), with First Canadian Capital Corp., a company headquartered in Toronto, Ontario, pursuant to which First Canadian will provide strategic marketing and investor relations services to the Company. The Consulting Agreement is for a term of one year, subject to extension, unless terminated earlier by the parties in accordance with the terms of the Consulting Agreement.
Pursuant to the Consulting Agreement, Stronghold has granted First Canadian an option package consisting of a total 350,000 options (the “Options”) exercisable at incremental prices and will pay a monthly fee of $6,000. The Options entitle First Canadian to acquire 150,000 shares at a price of $0.34 per share, 80,000 shares at $.45 per share and 120,000 shares at $.60 per share. The Options expire on the earlier of two years from the date of the Consulting Agreement and 30 days after First Canadian ceases to provide the services set out in the Consulting Agreement. In accordance with TSX Venture Exchange policies, the Options will be subject to vesting provisions over a 12 month period.
Mr. Ioannis (Yannis) Tsitos, Stronghold’s President and Chief Executive Officer, stated: “It is management’s view that Stronghold’s story and our progress at our flagship Eagle Mountain project in Guyana is not well known or followed. As previously stated, we have completed 103 drill holes in our current program at Eagle Mountain and so far have only received and announced the results from 32 of those holes. All of the reported holes intersected gold mineralization with the most recent batch (see news release dated September 26, 2011) reporting standout results. As we release the remaining results, we hope and expect that First Canadian will be able to effectively reach both institutional and retail investors and keep them apprised of our progress. We hope that the project also will merit analyst coverage.”
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