Troymet Signs Agreement to Sell Key Property
November 19, 2013 (Source: Marketwired) — Troymet Exploration Corp. (TSX VENTURE:TYE) (“Troymet“) announced today that it has entered into an asset sale agreement (the “Sale Agreement“) with respect to the sale of Troymet’s 100% interest in the Key Property in British Columbia to New Gold Inc. (“New Gold“) (the “Proposed Transaction“).
Pursuant to the Proposed Transaction, Troymet will sell its 100% interest in the Key Property, along with associated technical information and permits, for a purchase price of $2,000,000 cash. Troymet will also be granted a 2% net smelter returns royalty (“NSR Royalty“) on the Key Property, of which 1% (reducing the NSR Royalty from 2% to 1%) can be purchased by New Gold for $2,000,000 cash. In addition, pursuant to the Sale Agreement, New Gold has committed to spend $1,500,000 on the Key Property, with a minimum of $500,000 of expenditures on or before December 31, 2014 and the balance of $1,000,000 of expenditures on or before December 31, 2018, subject to certain conditions.
Get our daily investorintel update
The completion of the Proposed Transaction is subject to a number of conditions including, approval of the TSX Venture Exchange. The closing of the sale is expected to occur in early December 2013.
Dr. Kieran Downes, President of Troymet, stated, “We are very pleased to have entered into this agreement with New Gold, which is continuing to advance the Blackwater gold deposit and is the dominant player in the emerging Blackwater district. We anticipate that exploration and development of the Key Property will continue to advance under New Gold’s direction and the 2% NSR retained by Troymet will ensure significant benefit to shareholders in the event of a commercial discovery. The sale of the Key Property puts Troymet in a strong financial position to advance its 100% owned Golden Eagle project, and to pursue other high impact mineral projects.”
TROYMET EXPLORATION CORP.
Kieran Downes, Ph.D., P.Geo., President, CEO & Director
Neither the 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 news release.
This press release may contain certain forward-looking information. In particular, this press release contains forward-looking information in respect of the Proposed Transaction, the use of proceeds from the Proposed Transaction and the potential development of the Key project. All statements included herein, other than statements of historical fact, are forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and that actual results and future events could differ materially from those anticipated in such information. This forward-looking information reflects Troymet’s current beliefs and is based on information currently available to Troymet and on assumptions Troymet believes are reasonable. These assumptions include, but are not limited to, the ability of Troymet to fulfil conditions in the Sale Agreement, (including obtaining third party approvals), anticipated exploration costs and results of Troymet’s projects (including the Key project upon completion of the Proposed Transaction) and exploration and development of Troymet’s projects (including the Key project upon completion of the Proposed Transaction), other costs and expenses of Troymet and possible financing scenarios for future exploration and development by Troymet. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Troymet to be materially different from those expressed or implied by such forward-looking information. Such risks and other factors may include, but are not limited to: difficulty in obtaining third party approvals for the Proposed Transaction, the early stage development of Troymet and its projects; general business, economic, competitive, political and social uncertainties; commodity prices; the actual results of current exploration and development or operational activities; competition; changes in project parameters as plans continue to be refined; accidents and other risks inherent in the mining industry; lack of insurance; delay or failure to receive board or regulatory approvals; changes in legislation, including environmental legislation, affecting Troymet; timing and availability of external financing on acceptable terms; conclusions of economic evaluations; and lack of qualified, skilled labour or loss of key individuals. A description of other assumptions used to develop such forward-looking information and a description of other risk factors that may cause actual results to differ materially from forward-looking information may be found in Troymet’s disclosure documents on the SEDAR website at www.sedar.com. Troymet does not undertake to update any forward-looking information except in accordance with applicable securities laws.
Raj Shah has professional experience working for over a half a dozen years at financial firms such as Merrill Lynch and First Allied Securities Inc., ... <Read more about Raj Shah>