Benton Resources and Sokoman Minerals (OTCMKTS:SICNF) have formally entered into mutual participation agreements that decide cost reimbursement between both companies, as related to particular option agreements entered into by each of Benton and Sokoman on behalf of their strategic exploration alliance.
The alliance was announced back in May 2021. The companies have agreed to share exploration costs and costs associated with the exercise of property options, on a 50/50 basis, entered into by either party on behalf of the strategic alliance. If one of the joint venture parties enters into an option agreement that requires shares to be issued to a third party optioner, the other party contributes its 50% of the expenses, by reimbursing the first company for 50% of the option payments.
If there is a situation, where common shares are needed to be issued as part of the option payments to ensure all costs are equally divided, monetary value of such shares are to be calculated, and the joint venture party that wasn’t a part of the option agreement, will issue such number of shares to the party that did enter into the option agreement, having a monetary value equal to 50% of the value of the shares (issued by the party that entered into the agreement).
Market Reaction:
On Friday, SICNF stock fell 6.45% at $0.2950 with more than 110.13K shares, compared to its average volume of 171.01K shares. The stock has moved within a range of $0.2898 – 0.3320 after opening the trade at $0.3320.
