Margaux Resources Ltd. Announces Amending Agreement
January 27 2014 - 7:47PM
Marketwired
Margaux Resources Ltd. Announces Amending Agreement
CALGARY, ALBERTA--(Marketwired - Jan 27, 2014) - Margaux
Resources Ltd. (TSX-VENTURE: MRL) ("Margaux" or the "Company") is
pleased to announce that it has entered into an amendment (the
"Amendment") to its previously announced option agreement (the
"Option Agreement") dated November 8, 2013 with Sultan Minerals
Inc. ("Sultan") in respect of the Jersey-Emerald Tungsten-Zinc
Property (the "Property"), located in southeastern B.C (announced
November 11, 2013). The Amendment provides for an extension in the
timeframe to make the installment payments required under the
original Option Agreement to account for the delay the Company
experienced in closing its private placement offering. The recent
closing of the Company's private placement (announced January 21,
2014) allows the Company to move forward with the Option Agreement
and to make the required initial payments thereunder. In addition,
the trading halt on Margaux's common shares will soon be lifted,
and the Company expects that trading will resume on January 29,
2014.
Under the terms of the Amendment, Margaux will have the
exclusive option to acquire a 100% working interest in the Property
(subject to the net smelter returns royalties ("NSRs") discussed
below) by:
- making payments to Sultan of an aggregate $4.0 million, paid in
several installments on or before November 8, 2016 (the "Agreement
Date") as follows:
- an initial deposit of $50,000 paid previously;
- a cash payment of $150,000 on or before January 29, 2014;
- on or before the January 29, 2014, a cash payment of $300,000,
to be held in trust pending receipt of TSX Venture Exchange
approval for the transaction;
- on or before the first anniversary of the Agreement Date, a
cash payment of $750,000;
- on or before the second anniversary of the Agreement Date, a
cash payment of $1,250,000; and
- on or before the third anniversary of the Agreement Date, a
cash payment of $1,500,000; and
- incurring not less than $2,000,000 in expenditures on the
Property on or before the third anniversary of the Agreement
Date.
Margaux will use its best efforts to incur expenditures of
$6,000,000 on the Property on or prior to the third anniversary of
the Agreement Date.
The other terms of the Option Agreement remain unchanged,
including Sultan's retention of a 1.5% NSR on the Property. For a
period of 60 days following the earlier of (a) the commencement of
commercial production on the Property or (b) the completion of a
feasibility study on the Property, Margaux may purchase 50% of the
NSR (being a 0.75% net smelter returns royalty) from Sultan for a
payment to Sultan of $5.0 million. The Property is also subject to
several additional NSRs, ranging from 1-2% on various areas of the
Property.
As announced on January 15, 2014, the Company has appointed Mr.
Edward Lawrence to the Board of Directors of the Corporation. Mr.
Lawrence will act as the Corporation's "Qualified Person" under
National Instrument 43-101, "Standards of Disclosure for
Mineral Projects" ("NI 43-101") with respect to the technical
disclosure concerning the Property.
As of the date hereof, neither the Company nor Mr. Lawrence have
verified the resource estimates or the exploration information
pertaining to Sultan's public disclosure regarding the Property.
Sultan's resource estimates are considered historical estimates and
the estimates should not be relied upon. The Company understands
that no additional exploration or development work has been
completed on the Property since the dates of Sultan's most recent
NI 43-101 reports. In connection with seeking TSX Venture Exchange
("Exchange") approval of the Option Agreement (as discussed below),
the Company expects to commission an updated NI 43-101 technical
report.
Completion of the transaction is subject to a number of
conditions, including receipt of final TSX Venture Exchange
approval. There can be no assurance that the transaction will be
completed as proposed or at all.
Investors are cautioned that any information released or
received with respect to the Property may not be accurate or
complete and should not be relied upon. Trading in the securities
of Margaux should be considered highly speculative.
The TSX Venture Exchange has in no way passed upon the merits of
the proposed transaction and has neither approved nor disapproved
the contents of this press release.
Tyler Rice, President and CFO
FORWARD LOOKING INFORMATION
This press release contains certain forward-looking
information and statements within the meaning of applicable
securities laws. The use of any of the words "expect",
"anticipate", "continue", "estimate", "may", "will", "project",
"should", "believe", "plans", "intends" and similar expressions are
intended to identify forward-looking information or statements. In
particular, but without limiting the forgoing, this press release
contains statements concerning the Company's expectations regarding
receipt of regulatory approvals, the ability to make the required
installment payments under the Option Agreement, the Company's
ability to obtain a new NI 43-101 report and the timing
thereof.
Forward-looking statements or information are based on a
number of material factors, expectations or assumptions of Margaux
which have been used to develop such statements and information but
which may prove to be incorrect. Although Margaux believes that the
expectations reflected in these forward-looking statements are
reasonable, undue reliance should not be placed on them because
Margaux can give no assurance that they will prove to be correct.
Since forward-looking statements address future events and
conditions, by their very nature they involve inherent risks and
uncertainties.
The forward-looking statements contained in this press
release are made as of the date hereof and Margaux undertakes no
obligations to update publicly or revise any forward-looking
statements or information, whether as a result of new information,
future events or otherwise, unless so required by applicable
securities laws.
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.
Margaux Resources Ltd.(403) 537 5590
Margaux Resources (TSXV:MRL)
Historical Stock Chart
From Jun 2024 to Jul 2024
Margaux Resources (TSXV:MRL)
Historical Stock Chart
From Jul 2023 to Jul 2024