Advanced Explorations Inc. Announces Amendment to Roche Bay Royalty Agreement
16 Dezember 2013 - 8:52PM
Marketwired
Advanced Explorations Inc. Announces Amendment to Roche Bay Royalty
Agreement
TORONTO, ONTARIO--(Marketwired - Dec 16, 2013) - Advanced
Explorations Inc. (the "Company" or "AEI")
(TSX-VENTURE:AXI)(FRANKFURT:AE6) announced today that it has
entered into an amendment agreement (the "Amendment Agreement")
with Roche Bay plc and Roche Bay East Limited (collectively "Roche
Bay") pursuant to which the Parties have agreed to amend the terms
of the royalty agreement dated for reference March 23rd, 2009 and
entered into on March 31st, 2009 (the "Royalty Agreement"). This
Amendment Agreement is intended by the Parties to extend the
payment terms for the Mandatory Minimum Payment (as defined in the
Royalty Agreement), and to grant AEI an additional option to buy
out a portion of the royalty, as further set out below.
Amendment to Mandatory
Minimum Payment
The Parties agree to amend the payment terms of the 2013
Mandatory Minimum Payment currently due and owing to Roche Bay, as
follows:
- An initial installment of $50,000 payable on or before December
31st, 2013;
- The amount of $100,000 payable on or before January 31st, 2014;
and
- The amounts of $50,000 on each of March 15, 2014, June 15,
2014, and September 15, 2014
In addition to the cash consideration, AEI shall issue 5,500,000
common shares within 5 business days of execution of the Amendment
Agreement, and shall further issue common shares to Roche Bay on
September 15th, 2014, such shares are to be deemed to have a total
monetary value of $300,000 at a price per share equal to the volume
weighted average price on the 30-day period prior to issuance.
All securities issuances contemplated herein shall be subject to
any statutory or regulatory requirements with respect to hold
period, including compliance with all rules and policies of the TSX
Venture Exchange (the "Exchange") and subject to ultimate approval
by the Exchange. For the avoidance doubt, the Mandatory Minimum
Payments due to Roche Bay on December 15 of each year subsequent
shall remain unchanged by the Amendment Agreement.
Royalty
Reduction
Pursuant to the Amendment Agreement, Roche Bay has granted AEI
the option until December 15th, 2020 to exercise a royalty purchase
to reduce the royalty rates set out in the Royalty Agreement to as
low as 2%, other than relating to the Precious Metals Royalty
Interest.
ON BEHALF OF THE BOARD
John Gingerich, President & CEO
ABOUT Advanced Explorations Inc.
Advanced Explorations Inc., based in Toronto, Ontario, is a
resource development company focused on developing its Roche Bay
and Tuktu Iron Ore Projects in one of the world's largest
developing iron ore districts, the Melville Peninsula in Nunavut.
The Ocean-based Roche Bay Project boasts an NI 43-101 compliant
resource estimate of over 500 million tonnes outlined within a
small portion of the potential 140 km of banded iron formation. A
positive feasibility study for the project's C Zone revealed a net
present value of $642M on a base case 5.5 Mtpa start-up concentrate
operation and substantial upside potential including becoming a low
quartile cost producer. To date, the Company has delineated over 1
billion tonnes of iron under NI 43-101 among its Roche Bay and
Tuktu deposits and continues to explore other targeted deposits in
areas to the north, south and west of Roche Bay. The management
team has extensive technical, exploration and Canadian Arctic
mining expertise to effectively develop the high quality iron ore
opportunities on the Melville Peninsula.
This news release also includes forward-looking statements
that involve a number of risks and uncertainties. The information
reflects numerous assumptions as to industry performance, general
business and economic conditions, regulatory and legal
requirements, taxes and other matters, many of which are beyond the
control of the company. Similarly, this information assumes certain
future business decisions that are subject to change. There can be
no assurance that the results predicted here will be realized.
Actual results may vary from those represented, and those
variations may be material.
This news release does not constitute an offer to sell or a
solicitation of an offer to sell any securities in the United
States. The securities have not been and will not be registered
under the United States Securities Act of 1933, as amended (the
"U.S. Securities Act") or any state securities laws and may not be
offered or sold within the United States or to U.S. Persons unless
registered under the U.S. Securities Act and applicable state
securities laws or an exemption from such registration is
available.
NEITHER THE TSX-VENTURE EXCHANGE NOR ITS REGULATION SERVICES
PROVIDER (AS THAT TERM IS DEFINED WITHIN THE POLICIES OF THE
TSX-VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR
ACCURACY OF THIS RELEASE.
Advanced Explorations Inc.Brendan Purdy416-203-0057 (ext
320)
(TSXV:AXI)
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