TSX-V: CLZ
www.canasil.com
VANCOUVER, Oct. 24, 2018 /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 a non-binding
Letter of Intent ("LOI") providing for Pan American to acquire
Canasil's interest in the Sandra-Escobar project in Durango, Mexico. The LOI provides for the
parties to enter into a Definitive Agreement covering the
acquisition of Canasil's interest by Pan American for a payment of
CDN $2 million and grant of a 2% net
smelter returns royalty on Pan American's interest in the project
("NSR Royalty"). Pan American will have the right to reduce the NSR
Royalty to 1% at any time by paying the Company CDN $4 million. The parties anticipate completing the
Definitive Agreement by the end of November
2018. The Definitive Agreement will supersede all prior
agreements and arrangements between Canasil and Pan American with
respect to the Sandra-Escobar project.
Canasil CEO, Bahman Yamini,
commented: "We look forward to finalizing the Definitive
Agreement with Pan American for the sale of Canasil's interest in
Sandra-Escobar, which will provide a source of significant
non-dilutive funding to maintain and advance our current project
portfolio. In addition to the cash payment Canasil will retain
exposure to the upside potential of the Sandra-Escobar project
through the retained NSR."
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", with excellent access and
infrastructure. This prolific trend hosts some of the world's
largest silver camps and deposits, with many past and present
producing mines and significant silver-gold deposits. The combined
properties cover over 6,970 hectares (the Sandra property 6,335
hectares and the Escobar property 635 hectares) of mineral
concessions hosting multiple mineralized structures that control
zones of disseminated silver mineralization in volcanic tuffs as
well as quartz veins and breccia structures. The veins and
structures form a high level silver-gold-base metal system, hosted
in andesitic and rhyolitic rocks, and are centered on a large
rhyolite dome complex in the north and silver-dominant systems
around smaller rhyolite dome complexes to the southeast. Intense
alteration zones and fluid flooding in permeable formations
indicate the possible presence of additional large disseminated
targets. Excellent infrastructure exists in the Sandra Escobar
area, including paved road access, electrical power, water and
manpower from nearby communities.
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.
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.
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.