Armistice Resources signs definitive option agreement to acquire former Kerr-Addison mine property

On December 23, 2010, Armistice Resources Corp. (TSX: AZ) announced that it had signed a definitive five-year option agreement for the purchase of up to 100% of the mineral rights of the former Kerr-Addison mine property. Armistice had previously signed a Letter of Intent with a group of private investors to provide the company one year to complete due diligence and an additional 6 months to sign a definitive option agreement for the purchase of up to 100% of the ownership of the former Kerr-Addison Mine workings and related mineral properties totalling in excess of 2,000 acres. On signing the Letter of Intent, Armistice paid $100,000 to the group of private investors. In connection with the signing of the definitive five-year option agreement, Armistice has made the first of five annual payments of $500,000 to the private investors, and has issued 2,000,000 common shares to the investor group.Armistice also will be required to pay a 2% royalty on gold production, except for one area identified in an internal report which is subject instead to a 3% royalty. Armistice was advised in the negotiation of this agreement by Fasken Martineau with a team led by Michael Bourassa and that included Alex Nikolic and Laurie Turner (corporate), and Andrea Centa (real estate), with the assistance of real property law clerk Joanne Meadowcroft.