Sultan Minerals Announces Disposition of the Jersey Emerald Property, B.C.
11 Novembro 2013 - 12:21PM
Access Wire
Vancouver, BC - November 11,
2013: Sultan Minerals
Inc. (TSX-V: SUL; "Sultan" or "the Company") is pleased to
announce that it has entered into an Option Agreement with Margaux
Resources Ltd. (TSX-V: MRL; "Margaux") for the disposition of 100%
of the Jersey-Emerald Tungsten-Zinc Property ("the Property"),
located in southeastern B.C. With the sale of the Property Sultan
intends to switch its strategic focus to the exploration and
development of its gold projects.
Under the terms of the Option
Agreement, Margaux will have the exclusive option to acquire the
Property by:
-
1) making
payments to Sultan of an aggregate $4.0 million, paid in several
installments on or before November 8, 2016 as follows:
-
a) an initial
deposit of $50,000 paid previously;
-
b) within ten
(10) business days of execution of the Option Agreement, a cash
payment of $450,000 (for an aggregate payment of
$500,000);
-
c) on or before
the first anniversary of the execution of the Option Agreement, a
cash payment of $750,000 (for aggregate payments of
$1,250,000);
-
d) on or before
the second anniversary of the execution of the Option Agreement, a
cash payment of $1,250,000 (for aggregate payments of $2,500,000);
and
-
e) on or before
the third anniversary of the execution of the Option Agreement, a
cash payment of $1,500,000 (for aggregate payments of $4,000,000);
and
-
2) incurring not
less than the aggregate sum of $2,000,000 in expenditures on the
Property on or before the third anniversary of the execution of the
Option Agreement.
Margaux will use its best
efforts to incur expenditures of $6,000,000 on the Property on or
prior to the third anniversary of the execution of the Option
Agreement.
Sultan will retain a 1.5% net
smelter returns royalty ("NSR") on the Property. For a period of 60
days following the earlier of (a) the commencement of commercial
production on the Property or (b) the completion of a feasibility
study on the Property, Margaux may purchase 50% of the NSR (being a
0.75% net smelter returns royalty) from Sultan for a payment to
Sultan of $5.0 million.
Pursuant to the Option
Agreement, Margaux will assume all existing royalties on the
Property.
The Jersey Emerald Property
is located in southeastern British Columbia, 10 kilometres
southeast of the community of Salmo. The Property consists of
mineral claims and crown grants covering approximately 15,000
hectares in the Nelson Mining Division. The Property includes
British Columbia's second largest historic lead zinc mine as well
as Canada's second largest historic tungsten mine which have been
inactive since 1973. The property has a significant remnant
resource for tungsten (please see News Release January 21, 2009)
and for lead zinc (please see News Release March 1, 2010). In
addition, the Property is prospective for additional deposits of
tungsten, zinc, lead, gold and silver.
The transaction will benefit
Sultan by providing funding for the company with no share dilution
and will allow the Company to focus its exploration efforts
entirely on its gold properties. Through the retained NSR royalty,
Sultan shareholders will still benefit from the development of the
Jersey-Emerald Property by Margaux.
The transaction is subject to
TSX Venture Exchange and shareholder approval. The Company has
scheduled a special general meeting of its shareholders for
December 16, 2013.
Arthur G. Troup, P.Eng., Geological
President and CEO
For further information please
contact:
Marc Lee, Investor and Corporate Communications
Tel: (604) 628-0519 Fax: (604) 628-0446
Email: mlee@sultanminerals.com
or info@sultanminerals.com
For further information on
Sultan's projects, visit www.sultanminerals.com.
This release was prepared by
Sultan's management. Neither TSX Venture Exchange nor its
Regulation Services Provider (as the term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
This news release includes
certain statements that may be deemed "forward-looking statements."
All statements in this release, other than statements of historical
facts, that address future production, reserve potential,
exploration drilling, exploitation activities and events or
developments that Sultan expects are forward-looking statements.
Although Sultan believes the expectations expressed in such
forward-looking statements are based on reasonable assumptions,
such statements are not guarantees of future performance and actual
results or developments may differ materially from those in the
forward-looking statements. Factors that could cause actual results
to differ materially from those in forward-looking statements
include market prices, exploitation and exploration successes, and
continued availability of capital and financing, and general
economic, market or business conditions. Investors are cautioned
that any such statements are not guarantees of future performance
and those actual results or developments may differ materially from
those projected in the forward-looking statements. For more
information on Sultan, investors should review Sultan's filings
that are available at www.sedar.com or Sultan's website at
www.sultanminerals.com.
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