Americas Bullion Royalty Retains Legal Counsel; Announces Officer Change
HAYDEN, ID, June 25, 2013 /CNW/ - Americas Bullion Royalty Corp. (TSX: AMB) announces that it has retained Borden Ladner Gervais LLP, with D. Ross McGowan as lead counsel, in regards to the dispute with MF Investments. MF Investment Holding Company 1 (Cayman) Limited, part of the Red Kite Group, has indicated that it has or intends on issuing notices alleging an Event of Default under the secured facility agreement dated September 25, 2012 (the "Facility Agreement") and asserting rights to exercise an option to purchase twenty-six royalty interests including the Pan and Bald Mountain interests by paying Americas Bullion US$35,000,000 in cash as set forth in section 7.6 of the Facility Agreement. Americas Bullion rejects that any Event of Default has occurred under the Facility Agreement, asserts that no valid and effective notice has been issued upon it as required by the Facility Agreement and has engaged legal counsel to challenge the recent conduct of MF Investments.
The Company also announces that, effective June 25, 2013, William M. Sheriff has resumed his position as Chairman and Chief Executive Officer of the Company and Paul H. Zink has assumed the title of Chief Investment Officer. The changes are solely related to the situation described in the news release of June 24, 2013 and not to performance or any other factor.
A copy of the executed Facility Agreement was posted on SEDAR on October 9th, 2012 (file name: Material Document) under Americas Bullion Royalty Corp. To view the document please visit: http://sedar.com/DisplayCompanyDocuments.do?lang=EN&issuerNo=00028253
Americas Bullion Royalty Corp.
Americas Bullion Royalty Corp. focuses on acquiring precious metal royalties and streaming assets which provide revenue as well as lower risk exposure to shareholders through project diversity in stable, mining-friendly jurisdictions. The Company's existing portfolio is highlighted by Gross in-kind Royalties on Midway Gold's Pan and Gold Rock deposits, as well as 2 separate royalties encompassing more than 34 square miles at Barrick Gold's Bald Mountain project in Nevada.
The Company holds additional royalties including Net Smelter Return Royalties on the Taylor Silver project and a portion of the Tonkin Springs project also in Nevada. The Company's royalty holdings comprise more than 100,000 acres located primarily in Nevada, with 7 of the projects located in Wyoming, Oregon, California and Mexico. Current royalty revenue is expected to accelerate as early as 2014 as several of these projects commence production. Americas Bullion Royalty Corp.'s prime royalty portfolio is unique in the mineral royalty industry due to its ability to receive the majority of projected revenues in-kind (gold bullion as opposed to cash), its concentration of gross royalties with no exposure to operator cost, as well as its security of title with no buyback or buyout provisions. The Company continues to advance or monetize other assets including its significant Yukon property holdings, security holdings and the Taylor Mill in Nevada.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This press release contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance. There are numerous risks and uncertainties that could cause actual results and Americas Bullion's plans and objectives to differ materially from those expressed in the forward-looking information. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, Americas Bullion assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.
SOURCE Americas Bullion Royalty Corp.