TSX-V: CLZ
www.canasil.com
VANCOUVER, June 28, 2019 /CNW/ - Canasil Resources
Inc. (TSX-V: CLZ, DB Frankfurt: 3CC, "Canasil" or
the "Company") announces that the Company and Pan American Silver
Corp. (TSX: PAAS, NASDAQ: PAAS), through its subsidiary Plata
Panamericana SA de CV ("Pan American"), have signed the definitive
agreement providing for Pan American to acquire Canasil's interest
in the Sandra-Escobar project in Durango,
Mexico (the "Definitive Agreement"), and closed the
transaction for a payment of CDN $2
million and grant of a 2% net smelter returns royalty
interest on Pan American's interest in the project ("NSR Royalty
Interest"). Pan American retains the right to reduce the NSR
Royalty Interest to 1% at any time by paying the Company CDN
$4 million. The Definitive Agreement
supersedes all prior agreements and arrangements between Canasil
and Pan American with respect to the Sandra-Escobar project.
Canasil CEO, Bahman Yamini,
commented: "We are pleased to have concluded the sale of
Canasil's interest in Sandra-Escobar to Pan American. This
arrangement provides significant non-dilutive funding to maintain
and advance our project portfolio, which includes drill ready high
grade silver-gold-base metal projects in Mexico and prospective gold-copper exploration
projects in British Columbia,
Canada. In addition to the cash payment Canasil will retain
exposure to the upside potential of the Sandra-Escobar project
through the retained NSR Interest."
Sandra and Escobar Silver-Gold Properties, Durango, Mexico
The Sandra and Escobar Properties are located 200 km northwest
of the city of Durango, Mexico, in
the heart of the "Mexican Silver Trend". The combined properties
cover over 6,970 hectares of mineral concessions hosting multiple
mineralized structures with zones of disseminated silver
mineralization as well as quartz veins and breccia structures.
Excellent infrastructure exists in the Sandra Escobar area,
including paved road access, electrical power, water and manpower
from nearby communities.
About Canasil:
Canasil is a Canadian mineral exploration company with a strong
portfolio of 100% owned silver-gold-copper-lead-zinc projects in
Durango and Zacatecas States, Mexico, and in British Columbia, Canada. The Company's
directors and management include industry professionals with a
track record of identifying and advancing successful mineral
exploration projects through to discovery and further development.
The Company is actively engaged in the exploration of its mineral
properties, and maintains an operating subsidiary in Durango, Mexico, with full time geological and
support staff for its operations in Mexico.
The technical information herein has been reviewed and approved
by J. Blackwell (P. Geo.), a Qualified Person as defined by
National Instrument 43-101. Mr. Blackwell is a technical advisor to
Canasil.
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 news release.
This news release includes certain statements that may be
deemed to be "forward-looking statements". All statements in this
release, other than statements of historical facts are forward
looking statements, including statements that address future
mineral production, reserve potential, exploration drilling,
exploitation activities and events or
developments. These statements involve known and
unknown risks, uncertainties and other factors that may cause
actual results or events to differ materially from those
anticipated in such forward-looking statements.
Although the Company 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, but are not limited to, changes
in commodities prices, exploration successes, continued
availability of capital and financing, and general economic, market
or business conditions. The reader is referred to the
Company's filings with the Canadian securities regulators for
disclosure regarding these and other risk factors. There is no
certainty that any forward looking statement will come to pass and
investors should not place undue reliance upon forward-looking
statements.
SOURCE Canasil Resources Inc.