Silver Stream Signs Definitive Agreement to Acquire Zonia Copper Project in Arizona With Phased Earn-In From Feasibility to B...
May 12 2014 - 5:00PM
Marketwired
Silver Stream Signs Definitive Agreement to Acquire Zonia Copper
Project in Arizona With Phased Earn-In From Feasibility to Buyout
LAS VEGAS, NEVADA--(Marketwired - May 12, 2014) - Silver Stream
Mining Corp. (the "Company" or "Silver Stream") (OTCQB:AGSM)
announced today it has completed its corporate due diligence and
signed a definitive agreement ("Agreement") with Redstone Resources
Corporation ("Redstone"), a private Nevada Corporation, to earn in
and ultimately buyout the Zonia Copper Project ("Zonia") located in
Yavapai County, Arizona, approximately 81 miles northwest of
Phoenix, Arizona.
Under the terms of the Agreement, Silver Stream will be making a
$500,000 USD First Tranche investment into Redstone over six (6)
monthly installments of $83,333 USD and acquiring 2,500,000 shares
of Redstone's Common Shares at $0.20/share for a 4.94% equity
position in Redstone. Silver Stream announced its first payment of
$83,333 to Redstone in its March 26, 2014 news release.
Upon completion of its First Tranche investment, Silver Stream
will make a $1,500,000 Second Tranche investment to acquire an
additional 7,500,000 shares of Redstone's Common Shares at
$0.20/share for a 19.76% total equity position in Redstone. The
purpose of the Second Tranche investment is to perform additional
reverse circulation and core drilling on the Zonia property.
Upon completion of its $1,500,000 USD Second Tranche investment,
Silver Stream will have a twelve (12) month period to complete a
Third Tranche investment of $4,500,000 USD to acquire an additional
22,500,000 shares of Redstone's Common Shares at $0.20/share for a
44.45% total equity position in Redstone. The purpose of the Third
Tranche investment is to complete a definitive feasibility study
("Feasibility Study") for Zonia.
Silver Stream will have 80% Warrant coverage on each of the
First, Second and Third Tranche investments into Redstone which
will allow the Company to own a controlling equity interest (62.3%)
in Zonia upon conversion of Warrants.
Provisions have been made for Silver Stream to increase its
total equity position to 75% for $3,373,851 USD. Silver Stream can
ultimately increase its equity position to 100% and buyout Redstone
for $6,426,149 USD or 7% of net present value as determined by the
Feasibility Study including any feasibility adjustments.
In the event Silver Stream does not convert its Warrants into
Common Shares, Redstone will have the right and option to purchase
in one or more transactions up to 100% of the securities acquired
by Silver Stream in the Second Tranche and Third Tranche purchase
transactions (inclusive of the Shares and Warrants for such
tranches) at a cost equal to Silver Stream's total investment in
the Shares that Redstone elects to repurchase from the Second
Tranche and/or Third Tranche Shares.
About Silver Stream: Silver Stream is a natural
resource company engaged in the acquisition of, exploration for,
and development of, metallic mineral resources in the Americas. The
Company is currently focused on delivering shareholder value
through the exploration of the Solomon Pillars Gold Property in
Beardmore, Ontario, Canada, the Zonia Copper Project in Yavapai
County, Arizona, and the Metates Silver Project in Sinaloa, Mexico.
The Company's Technical Advisory Team, with expertise in geology,
engineering and operations provides a foundation to assess other
mining projects for potential acquisition or joint venture
opportunities throughout the Americas and to pursue the development
of the Company's existing projects in a focused and economical
manner.
FORWARD-LOOKING STATEMENTS:
Information contained herein regarding optimism related to the
Company's business, expanding exploration, development activities
and other such statements are "forward-looking statements". While
Silver Stream believes such statements are reasonable, they are
based on current expectations, estimates and projections about the
Company's business and are not guarantees of future performance and
involve certain risks and uncertainties that are difficult to
predict. Actual results could vary materially from the description
contained herein due to many factors including market prices for
the Company's mineral products, international and domestic economic
conditions, and other risk factors listed in the Company's
Securities and Exchange Commission (SEC) filings under "risk
factors" and elsewhere. The Company does not undertake any
obligation to update any forward-looking statement to reflect
events or circumstances after the date of this press release,
except as required by applicable law.
Silver Stream Mining Corp.Terrence H. BybergPresident and
C.E.O.(702) 818-1775(702) 818-1776info@silverstreammining.com
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