Chilean Metals Inc. closes Copaquire sale
March 24 2014 - 10:44PM
Access Wire
Toronto, ON / ACCESSWIRE / March 24 2014 / Chilean Metals
Inc. ("Chilean Metals" or the "Company") (TSX.V:CMX), is pleased to
announce that it has closed the sale of the Company's Copaquire
project through its wholly owned Chilean subsidiary, Minera IPBX
Ltda. ("IPBX") to Teck Resources Chile Ltda. ("Teck"), a subsidiary
of Teck Resources Limited. The consideration received for the sale
of Copaquire is US$3,033,556 cash plus a 3% net smelter royalty
(NSR) payable to IPBX as and when resources from the property are
processed. Additionally, Teck will have the option to buy back 1%
of the NSR for US$3 million at any time.
"We are glad to finally close this transaction and we look
forward to our new future with a clean balance sheet and a focus on
realizing value from our extensive historic Chilean land position.
We had some very positive discussions at PDAC and sense that the
Industry has bottomed out and from here we can rebuild and position
ourselves for a brighter future," commented Terry Lynch CEO of
Chilean Metals. "Our immediate next step is to continue to explore
our 100% owned Tierra De Oro ("TDO") property. Historically we have
spent over $5 million on exploring numerous gold veins on the
property, but not on exploration for more economically-significant
IOCG (iron oxide-copper-gold) deposits. VP Exploration Chris
Hodgson, has reviewed previous exploration data and identified
three large, untested and near-surface IOCG targets on TDO.
Discussions are ongoing with potential joint venture partners on a
farm-out deal that we expect will lead to additional drilling on
the project later this year".
In addition, the Company announces it has extended and
re-priced all outstanding warrants subject to TSX Venture Exchange
approval. Total outstanding warrants of 2,151,758 (post
consolidation) now have an expiry date of August 31, 2014 and have
a re-priced post consolidation exercise price of $0.25. Please
refer to the following table which outlines in detail each of the
warrant tranches outstanding and the effect of the amendments to
each tranche.
Click Image To View Full Size
Terry Lynch commented, "We had contemplated this with the
extensions announced in December and January but could not finalize
our strategy of this until after stock was consolidated. We believe
this positioning will provide an exercise price that we feel will
prove valuable in the not too distant future and it dovetails with
our plans on funding as we move forward with building Chilean
Metals Inc."
Chilean Metals Inc. owns six
100%-owned properties comprising over 50,000 acres strategically
located in the prolific IOCG ("Iron oxide-copper-gold") belt of
Chile. Three of these projects are under review by third parties
for possible purchase or joint venture.
ON BEHALF OF THE BOARD OF DIRECTORS
OF
Chilean Metals Inc.
"Terry Lynch"
Terry
Lynch, CEO
Contact:
terry@chileanmetals.com
Forward-looking Statements:
This news release may contain certain statements that may be deemed
"forward-looking statements". All statements in this release, other
than statements of historical fact, that address events or
developments that CMX expects to occur, are forward looking
statements. Forward-looking statements are statements that are not
historical facts and are generally, but not always,
identified by the words "expects", "plans",
"anticipates", "believes", "intends", "estimates", "projects",
"potential" and similar expressions, or that events or conditions
"will", "would", "may", "could" or "should" occur. Forward-looking
statements in this document include statements regarding current
and future exploration programs, activities and results. Although
CMX 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 may differ
materially from those in forward-looking statements. Factors that
could cause the actual results to differ materially from those in
forward-looking statements include market prices, exploitation and
exploration success, continued availability of capital and
financing, inability to obtain required regulatory or governmental
approvals and general economic, market or business conditions.
Investors are cautioned that any such statements are not guarantees
of future performance and actual results or developments may differ
materially from those projected in the forward looking
statements.
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.
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