Benz Capital Corp. Announces Non-Binding Proposal
March 24 2014 - 7:49PM
Marketwired Canada
NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE
SERVICES AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN.
Benz Capital Corp. (TSX VENTURE:BZ) (the "Corporation" or "Benz") is pleased to
announce that it has entered into a Non-Binding Proposal (the "Proposal") with
Tusk Exploration Ltd., a private British Columbia company ("Tusk") for the
option to acquire a 100% interest (the "Transaction") in the San Javier Copper
Project (the "Property"), located approximately two hours driving time east of
the capital city of Hermosillo, Sonora, Mexico, and immediately adjacent to
Mexican Highway 16 and near the village of San Javier, Sonora.
The Proposal is to be superseded by a definitive agreement (the "Agreement") to
be entered into between Benz and Tusk on or before June 15, 2014. The
Transaction is subject to requisite regulatory approval, including the approval
of the TSX Venture Exchange (the "Exchange") and standard closing conditions,
including, approval of the shareholders of Benz, if required, the approval of
the directors of each of Benz and Tusk, and completion of due diligence
investigations to the satisfaction of each of Benz and Tusk, as well as the
conditions described below.
"San Javier represents a unique opportunity to acquire a well-explored and
defined copper deposit in a well-established and low-risk mining jurisdiction,"
said Miloje Vicentijevic, President and CEO of Benz. "This transaction may give
Benz the opportunity to develop its first producing mine and is consistent with
Benz's strategy of building a mining producer focused in the Americas."
The Proposed Transaction
The Proposal gives Benz an 80 day period to complete a detailed due diligence
review (the "Due Diligence Review") and execute the Agreement. The terms of the
Proposal provide for an aggregate purchase price of C$9.2 million comprised of a
cash payment of C$4.2 million payable in instalments (C$200,000 on or before
July 15, 2014 and C$2.0 million on or before each of December 31, 2017 and
2018), and the issuance of such number of Benz common shares (the "Consideration
Shares") having a value equal to C$5.0 million at a deemed price per
Consideration Share equal to the lesser of C$0.50 and the price per common share
in a private placement to be completed by Benz on or before October 31, 2014.
Upon issuance, the Consideration Shares are to be held in escrow and released in
stages over a four year period.
The cash payment of C$2.0 million on December 31, 2017 will grant Benz a 40%
interest in the Property, with the final payment of C$2.0 million on December
31, 2018 granting Benz a 100% interest.
Tusk will also retain a 1% net smelter return royalty on any future metal
production from the Property.
About the San Javier Copper Project
The Property consists of two non-contiguous groups of concessions. The Group 1
land block contains the Cerro Verde Deposit and includes the Uno, Dos, Tres,
Cerro Verde, and Ampliacion Cerro Verde concessions and totals about 379.8
hectares. The Group 2 land block contains the Mesa Grande and La Trinidad
deposits, and includes the San Carlos, La Trinidad Fraction 1, and La Trinidad
Fraction 2 concessions and totals 307.5 hectares in area.
The Property is essentially copper-only mineralization which is hosted within
Laramide age volcanic rocks.
The following table has been reproduced from the PEA National Instrument 43-101
compliant Technical Report dated December 20, 2007 prepared for Constellation
Copper Corporation, the previous owner of the Property.
----------------------------------------------------------------------------
Ore Tonnes ktonnes 89,484
----------------------------------------------------------------------------
Total Copper Grade % 0.34
----------------------------------------------------------------------------
Recovered Copper Grade % 0.19
----------------------------------------------------------------------------
Contained Copper Pounds mlbs 671
----------------------------------------------------------------------------
Recovered Copper Pounds mlbs 383
----------------------------------------------------------------------------
Average Recovery % 57.1
----------------------------------------------------------------------------
Total Material in Design Pit ktonnes 163,549
----------------------------------------------------------------------------
Waste to Ore Ratio 0.83
----------------------------------------------------------------------------
About Tusk
Tusk is a private exploration company with mining interests in the Yukon and
Mexico. Tusk acquires grass roots or early stage opportunities and advances the
projects to pre-development for producing miners.
Randy Reifel, President and CEO stated: "We look forward to working with Benz
and the transition of San Javier from a known copper deposit to an operating
open pit mine."
About the Corporation
Benz is a junior mining company focused on developing and exploring mineral
properties located in North America. Its key strategic goal is to become a
mining producer by 2017 or sooner. For more information, please refer to the
Company's website at www.benzcapital.com.
This news release contains statements about the Corporation's expectations
regarding the Transaction and the Property that are forward-looking in nature
and, as a result, are subject to certain risks and uncertainties. Although the
Corporation believes that the expectations reflected in these forward-looking
statements are reasonable, undue reliance should not be placed on them as actual
results may differ materially from the forward-looking statements and there can
be no assurance that such expectations will prove to be correct. Factors that
could cause the actual results to differ materially from those in
forward-looking statements include failure to complete the Transaction for any
reason whatsoever, including that the shareholders and/or regulators may not
approve the Transaction, and the potential development of the Property to a
producing mine may not occur as planned or at all. The forward-looking
statements contained in this news release are made as of the date hereof, and
the Corporation undertakes no obligation to update publicly or revise any
forward-looking statements or information, whether as a result of new
information, future events or otherwise, except as required by applicable
securities laws. The forward-looking statements contained in this news release
are expressly qualified by this cautionary statement.
Neither the 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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Benz Capital Corp.
Miloje Vicentijevic
President and Chief Executive Officer
604.689.9266
604.689.9232 (FAX)
www.benzcapital.com
Benz Mining (TSXV:BZ)
Historical Stock Chart
From Jun 2024 to Jul 2024
Benz Mining (TSXV:BZ)
Historical Stock Chart
From Jul 2023 to Jul 2024
