From the Wires
Huakan International Mining Inc. Receives $530,000 Relating to the Net Smelter Returns Royalty Buyout on the Greenwood Gold Project
By: Marketwired .
Jan. 9, 2013 04:27 PM
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 01/09/13 -- Huakan International Mining Inc. (TSX VENTURE:HK) (the "Company") reports that the Company has received $530,000 from Gold Crown LLC and its wholly owned subsidiary, AMT Industries Canada Inc. (collectively, the "Purchasers") relating to the acquisition of the Company's NSR (as defined below) pursuant to the letter agreement entered into by the Company and the Purchasers on August 7, 2012, as amended (the "Letter Agreement") (please see the news releases of the Company dated August 8, 2012 and November 6, 2012).
The $530,000 payment from the Purchasers consists of:
1. $500,000 representing the initial payment for acquisition of the Company's net smelter returns royalty on the Greenwood Gold Project (the "NSR"); and 2. $30,000 representing past extension fees.
In addition to the $530,000 received, the Company expects the Purchasers to do the following prior to 5 p.m. (Pacific Standard Time) on February 4, 2013:
1. pay an amount to the Company sufficient to replace the Company's reclamation bond on the Greenwood Gold Project which amount the Company shall pay to the Government of British Columbia in order to release the Company's security (currently approximately $450,000) that had been posted by the Company; 2. cooperate with the Company to execute and deliver a safekeeping agreement with the Government of British Columbia; and 3. pay to the Company the amount of $4,000,000 which represents the balance of the purchase price for acquisition of the NSR.
To formalize the above, the Company has proposed a third amending agreement to the Letter Agreement.
Following the delivery of all the above items and payments, the parties have agreed to cooperate in order to transfer the mining permits in respect of the Greenwood Gold Project from the Company to the Purchasers and the Company shall terminate the NSR.
All other terms and conditions of the Letter Agreement remain unchanged. All dollar amounts described herein are in Canadian funds.
CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING INFORMATION
Certain of the statements made and information contained herein may contain forward-looking statements or forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or forward-looking information include, but are not limited to, statements concerning the sale of the Greenwood Gold Project assets. Forward-looking statements or information include statements regarding the expectations and beliefs of management. Often, but not always, forward-looking statements and forward-looking information can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements or information include, but are not limited to, statements or information with respect to known or unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information.
Forward-looking statements or information are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements or information, including, without limitation, risks and uncertainties relating to: completion of announced transactions, history of losses; requirements for additional capital; dilution; loss of its material properties; interest rates increase; global economy; limited history of production; speculative nature of exploration activities; periodic interruptions to exploration, development and mining activities; environmental hazards and liability; industrial accidents; failure of processing and mining equipment; labour disputes; supply problems; commodity price fluctuations; uncertainty of production and cost estimates; the interpretation of drill results and the estimation of mineral resources and reserves; legal and regulatory proceedings and community actions; title matters; regulatory restrictions; permitting and licensing; volatility of the market price of common shares; insurance; competition; hedging activities; currency fluctuations; and loss of key employees. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements or information. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information. The Company disclaims any intent or obligation to update forward-looking statements or information except as required by law, and you are referred to the full discussion of the Company's business contained in the Company's reports filed with the securities regulatory authorities in Canada.
Neither the TSX Venture Exchange nor its Regulations 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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