ASW: TSX.V
VANCOUVER, Jan. 25, 2013 /CNW/ - Anglo Swiss Resources Inc.
(ASW: TSX-V, ASWRF: PK) ("Anglo
Swiss" or the "Company") is pleased to announce
that it has entered into a definitive agreement dated January 23, 2013 (the "Vending 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. Closing of the transaction is expected to occur
before May 15, 2013.
Total consideration for the purchase of the
Property is CDN$10,000,000 which
shall be satisfied by the delivery to Anglo
Swiss of a $100,000 deposit on
signing of the Vending Agreement (received) and $3,900,000 on closing with the balance payable in
stages to June 1, 2016.
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, "We are extremely pleased to have entered into an
agreement with Eagle Creek. The Kenville Gold Property is a perfect
fit for a private company with the goal of achieving small-scale
production. The transaction provides 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 2016 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 a
number of conditions, including, but not limited to, confirmatory
due diligence, the receipt of all required regulatory approvals,
including the approval of the TSX Venture Exchange, and approval of
the shareholders of Anglo Swiss.
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.
CEO
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.