Drill for structure, drift for grade
Developing the Historic Kenville Gold Mine in Southeastern British Columbia
Message: Anglo Swiss Amends the Terms of the Sale of its Kenville Gold Property
VANCOUVER, July 4, 2013 /CNW/ - Anglo Swiss Resources Inc. (ASW: TSX-V,
ASWRF: PK) ("Anglo Swiss" or the "Company") wishes to announce that it has amended the terms of the agreement to
sell its Kenville Gold Property (the "Property"), located in southeastern BC, to Eagle Creek Gold Corp. ("Eagle Creek"), a private Alberta based company.
Total consideration for the purchase of the Property has been reduced to
CDN$8,000,000 which shall be satisfied by the delivery to Anglo Swiss
of the $100,000 deposit (received) and $1,900,000 on closing, scheduled
for August 15, 2013, with the balance payable in stages to August 15,
Additionally, Eagle Creek shall pay Anglo Swiss a perpetual 1% Net
Smelter Royalty on all production from the Property. Eagle Creek is
committed to invest a minimum of $5,000,000 into mining operations on
the Property and to make all reasonable efforts to initiate one hundred
(100) tonnes of production per day from the underground vein structures
contained within the Property.
Jari Paakki, CEO commented, "The volatility in the price of gold has
caused the financiers of Eagle Creek to require an adjustment in
payment due on closing and a reduction in the total consideration as
well as an extension of time to pay the balance. If the price of gold
is greater than or equal to US$1,700 per ounce for any six (6) calendar
months between January 1, 2015 and December 31, 2017, a further advance
royalty payment of $2,000,000 shall be payable December 31, 2017. The
Kenville Gold Property remains a perfect fit for a private company with
the goal of achieving small-scale production. The transaction will
still provide Anglo Swiss with appreciable short term cash allowing us
to identify and acquire a new asset with the potential for larger scale
production and to advance the Company's Blu Starr Flake Graphite
project as well as a further long term royalty payment. Cash payments
into 2017 provide the Company with sustained working capital,
minimizing near-term financings and share dilution. This is an
exceptional opportunity that we believe will greatly improve the
Company's future ability to grow and increase shareholder value."
Completion of the transaction is subject to approval of the shareholders
of Anglo Swiss at the Special Meeting to be held on August 7, 2013.
Each party will pay its own costs and expenses in connection with the
transaction. In addition, the parties have agreed that Anglo Swiss
will pay Eagle Creek a break fee if the transaction is not completed
under certain circumstances, and Eagle Creek has the right to match any
Superior Proposal for the Property.
Additional information regarding this proposed transaction will be
provided in the management information circular that will be mailed to
registered shareholders and filed on SEDAR
ON BEHALF OF THE BOARD OF DIRECTORS,
Jari Paakki, P.Geo.
Cautionary Note Regarding Forward-Looking Statements: Certain statements made herein may contain forward-looking statements
or information within the meaning of Canadian securities laws. Such
forward-looking statements or information include, but are not limited
to, statements or information with respect to Anglo Swiss Resources'
plan for future exploration and development of its properties.
Forward-looking statements or information are based on a number of
estimates and assumptions and are subject to a variety of risks and
uncertainties, which could cause actual events or results to differ
from those reflected in the forward-looking statements or information.
Should one or more of these risks and uncertainties materialize, or
should underlying estimates and assumptions prove incorrect, actual
results may vary materially from those described in forward-looking
statements or information. For example, there is no certainty, that
any economically viable mineral deposit will be located on the
Property, or that the Company will be able to raise sufficient capital
to complete all of its exploration and drill programs. Accordingly,
undue reliance should not be placed on forward-looking statements or
information. Anglo Swiss does not expect to update forward-looking
statements or information continually as conditions change, except as
may be required by securities law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release
SOURCE: Anglo Swiss Resources Inc.
For further information:
Jari Paakki, CEO Tel: 705-507-4470 [email protected] Chris Robbins, Vice President Tel: 604-683-0484 [email protected]
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