Sultan Minerals Announces Disposition of the Jersey Emerald Property, B.C.admin
Vancouver, BC – November 11, 2013: Sultan Minerals Inc. (TSX-V: SUL; “Sultan” or “the Company”) is pleased to announce that it has entered into an Option Agreement with Margaux Resources Ltd. (TSX-V: MRL; “Margaux”) for the disposition of 100% of the Jersey-Emerald Tungsten-Zinc Property (“the Property”), located in southeastern B.C. With the sale of the Property Sultan intends to switch its strategic focus to the exploration and development of its gold projects.
Under the terms of the Option Agreement, Margaux will have the exclusive option to acquire the Property by:
1) making payments to Sultan of an aggregate $4.0 million, paid in several installments on or before November 8, 2016 as follows:
a) an initial deposit of $50,000 paid previously;
b) within ten (10) business days of execution of the Option Agreement, a cash payment of $450,000 (for an aggregate payment of $500,000);
c) on or before the first anniversary of the execution of the Option Agreement, a cash payment of $750,000 (for aggregate payments of $1,250,000);
d) on or before the second anniversary of the execution of the Option Agreement, a cash payment of $1,250,000 (for aggregate payments of $2,500,000); and
e) on or before the third anniversary of the execution of the Option Agreement, a cash payment of $1,500,000 (for aggregate payments of $4,000,000); and
2) incurring not less than the aggregate sum of $2,000,000 in expenditures on the Property on or before the third anniversary of the execution of the Option Agreement.
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 execution of the Option Agreement.
Sultan will retain a 1.5% net smelter returns royalty (“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.
Pursuant to the Option Agreement, Margaux will assume all existing royalties on the Property.
The Jersey Emerald Property is located in southeastern British Columbia, 10 kilometres southeast of the community of Salmo. The Property consists of mineral claims and crown grants covering approximately 15,000 hectares in the Nelson Mining Division. The Property includes British Columbia’s second largest historic lead zinc mine as well as Canada’s second largest historic tungsten mine which have been inactive since 1973. The property has a significant remnant resource for tungsten (please see News Release January 21, 2009) and for lead zinc (please see News Release March 1, 2010). In addition, the Property is prospective for additional deposits of tungsten, zinc, lead, gold and silver.
The transaction will benefit Sultan by providing funding for the company with no share dilution and will allow the Company to focus its exploration efforts entirely on its gold properties. Through the retained NSR royalty, Sultan shareholders will still benefit from the development of the Jersey-Emerald Property by Margaux.
The transaction is subject to TSX Venture Exchange and shareholder approval. The Company has scheduled a special general meeting of its shareholders for December 16, 2013.
Arthur G. Troup, P.Eng., Geological
President and CEO
For further information on Sultan’s projects, visit www.sultanminerals.com.
This release was prepared by Sultan’s management. Neither TSX Venture Exchange nor its Regulation Services Provider (as the term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release includes certain statements that may be deemed “forward-looking statements.” All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that Sultan expects are forward-looking statements. Although Sultan 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 market prices, exploitation and exploration successes, and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements. For more information on Sultan, investors should review Sultan’s filings that are available at www.sedar.com or Sultan’s website at www.sultanminerals.com.
Posted: November 11th, 2013 under ACCESSWIRE.