VANCOUVER, July 4, 2013 /PRNewswire/ - Anglo Swiss Resources Inc. (ASW: TSX-V, ASWRF: PK) ("Anglo Swiss" or the "Company") wishes to announce that it has amended the terms of the agreement to sell its Kenville Gold Property (the "Property"), located in southeastern BC, to Eagle Creek Gold Corp. ("Eagle Creek"), a private Alberta based company.
Total consideration for the purchase of the Property has been reduced to CDN$8,000,000 which shall be satisfied by the delivery to Anglo Swiss of the $100,000 deposit (received) and $1,900,000 on closing, scheduled for August 15, 2013, with the balance payable in stages to August 15, 2017.
Additionally, Eagle Creek shall pay Anglo Swiss a perpetual 1% Net Smelter Royalty on all production from the Property. Eagle Creek is committed to invest a minimum of $5,000,000 into mining operations on the Property and to make all reasonable efforts to initiate one hundred (100) tonnes of production per day from the underground vein structures contained within the Property.
Jari Paakki, CEO commented, "The volatility in the price of gold has caused the financiers of Eagle Creek to require an adjustment in payment due on closing and a reduction in the total consideration as well as an extension of time to pay the balance. If the price of gold is greater than or equal to US$1,700 per ounce for any six (6) calendar months between January 1, 2015 and December 31, 2017, a further advance royalty payment of $2,000,000 shall be payable December 31, 2017. The Kenville Gold Property remains a perfect fit for a private company with the goal of achieving small-scale production. The transaction will still provide Anglo Swiss with appreciable short term cash allowing us to identify and acquire a new asset with the potential for larger scale production and to advance the Company's Blu Starr Flake Graphite project as well as a further long term royalty payment. Cash payments into 2017 provide the Company with sustained working capital, minimizing near-term financings and share dilution. This is an exceptional opportunity that we believe will greatly improve the Company's future ability to grow and increase shareholder value."
Completion of the transaction is subject to approval of the shareholders of Anglo Swiss at the Special Meeting to be held on August 7, 2013.
Each party will pay its own costs and expenses in connection with the transaction. In addition, the parties have agreed that Anglo Swiss will pay Eagle Creek a break fee if the transaction is not completed under certain circumstances, and Eagle Creek has the right to match any Superior Proposal for the Property.
Additional information regarding this proposed transaction will be provided in the management information circular that will be mailed to registered shareholders and filed on SEDAR at http://www.sedar.com.
ON BEHALF OF THE BOARD OF DIRECTORS,
Jari Paakki, P.Geo.
About Anglo Swiss:
Anglo Swiss Resources Inc. is a Canadian based exploration company with current assets including its Kenville Gold Mine and Blu Starr Flake Graphite properties in southeastern BC, and its Lansdowne House, Ring of Fire Nickel-Copper-PGE property in northwestern Ontario. Further information about the Company may be found in the Company presentation at http://www.anglo-swiss.com or at http://www.sedar.com.
Cautionary Note Regarding Forward-Looking Statements: Certain statements made herein may contain forward-looking statements or information within the meaning of Canadian securities laws. Such forward-looking statements or information include, but are not limited to, statements or information with respect to Anglo Swiss Resources' plan for future exploration and development of its properties. Forward-looking statements or information are based on a number of estimates and assumptions and 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. Should one or more of these risks and uncertainties materialize, or should underlying estimates and assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements or information. For example, there is no certainty, that any economically viable mineral deposit will be located on the Property, or that the Company will be able to raise sufficient capital to complete all of its exploration and drill programs. Accordingly, undue reliance should not be placed on forward-looking statements or information. Anglo Swiss does not expect to update forward-looking statements or information continually as conditions change, except as may be required by securities law.
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
SOURCE Anglo Swiss Resources Inc.