MIN

Excelsior Mining Corp. (TSX VENTURE:MIN)(OTCQX:EXMGF)(FRANKFURT:3XS)
("Excelsior" or the "Company") is pleased to announce that it has entered into a
Share Purchase and Royalty Option Agreement (the "Agreement") with Callinan
Royalties Corporation ("Callinan"). Under the terms of the agreement, Callinan
will invest $1.0 million in the Company by way of a non-brokered private
placement and up to a further $21.0 million through the purchase of a staged
gross revenue royalty ("GRR") on the Gunnison Project (the "Transaction").


Details of the Transaction

Under the terms of the Agreement, Callinan will purchase 6,250,000 common shares
of Excelsior at a price of $0.16 per common share for gross proceeds of $1.0
million. Concurrently, Callinan will acquire a 0.5% GRR on the Gunnison Project
(the "Initial GRR") for consideration of $2.0 million payable to Excelsior. The
closing of this $3.0 million initial investment is expected to occur on or
before July 31, 2013. Callinan will have the option to invest up to an
additional $19.0 million into Excelsior in exchange for a further 2.5% GRR on
the Gunnison Project based on development milestones (1.5%) and a construction
option (1%).


1.5% of the additional GRR is staged and based upon Excelsior meeting specific
development milestones leading up to the construction of a mining facility
including completion of a prefeasibility study and successful raise of
additional financing from other sources, completion of hydrology and metallurgy
models to feasibility study level and successful administrative review of the
key permits (Aquifer Protection Permit and the Underground Injection Control and
Aquifer Exemption Permit). Upon the completion of each milestone, Callinan will
have the option to purchase an additional 0.5% GRR for $3.0 million each.


The construction option gives Callinan the right to buy a 1% GRR for $10.0
million following completion of the feasibility study, receipt of all required
permits and Excelsior securing a firm commitment for 50% of the required capital
required for mine construction. One quarter (0.25%) of the construction option
will vest with each $3 million paid by Callinan to Excelsior pursuant to the
initial investment or upon the exercise of any of the royalty options. Should
all the royalty options be exercised, Callinan would acquire a 3% GRR on the
Gunnison project for total proceeds of $21.0 million.


The exercise price of the construction option may be adjusted if the feasibility
study recommends the construction of a plant with capacity lower than 80 million
pounds of copper per year based on an agreed upon schedule.


In addition, Callinan has the right to require Excelsior to purchase all or part
of the Initial GRR for $2,000,000 pro-rated for the portion of the GRR sold back
to Excelsior and payable in common shares of Excelsior priced at $0.25 per
share. This right will expire at the earliest of 24 months from the closing date
or the exercise of the first royalty option.


Stephen Twyerould, President and CEO of Excelsior, stated, "Despite the current
challenges of the junior mining market, we have successfully delivered to our
shareholders a significant financing partner via a non-dilutive structure. We
look forward to concluding the next task at hand, which is the completion of the
Pre-Feasibility Study."


The Chairman of Excelsior, Mark Morabito, added, "This transaction stands as
confirmation of the financial viability of the Gunnison Copper Project. We
welcome Callinan as our financial partner and we applaud them on their astute
decision to join with us to develop this remarkable resource."


Proceeds from the Transaction will be used by the Company to advance the
Gunnison Project and for general and working capital purposes. The Transaction
is subject to approval of the TSX Venture Exchange.


Project Summary

The Gunnison Copper Project is located in a remote section of Cochise County in
southeastern Arizona. The focus of the project is the North Star deposit, which
currently has a total Measured and Indicated mineral resource of 3.21 billion
pounds of oxide copper (498 M tons at 0.32%) and an Inferred mineral resource of
0.83 billion pounds of oxide copper (156 M tons at 0.27%). This oxide mineral
resource has the potential to be mined using in-situ recovery methods. Mineral
resources which are not mineral reserves do not have demonstrated economic
viability.


About Excelsior

Excelsior is a mineral exploration company with a copper project located within
the Copper Porphyry Belt of Arizona. The Gunnison Copper Project is situated
close to the required infrastructure and its oxide copper resource has the
potential to be mined using in-situ recovery methods. The Excelsior team
consists of experienced professionals with proven track records of advancing
projects into production.


Excelsior's exploration work on the Gunnison Property is supervised by Dr.
Stephen Twyerould, Fellow of AUSIMM, President and CEO of Excelsior, and a
Qualified Person as defined by National Instrument 43-101 (NI 43-101). Dr.
Twyerould has reviewed and approved the technical information disclosed in the
"Project Summary" and "About Excelsior" sections of this news release.


Further details about Excelsior can be found at: http://www.excelsiormining.com.
Further information about the Gunnison Copper Project can be found in the
technical report filed on SEDAR at www.sedar.com entitled: "Gunnison Copper
Project Preliminary Economic Assessment, NI 43-101 Technical Report" dated
November 18, 2011.


ON BEHALF OF THE EXCELSIOR BOARD

Stephen Twyerould, President & CEO

Cautionary Note Regarding Forward-Looking Information

This news release contains "forward-looking information" concerning anticipated
developments and events that may occur in the future. Forward looking
information contained in this news release includes, but is not limited to,
statements with respect to: (i) the estimation of inferred and indicated mineral
resources; (ii) production from the Gunnison Project; (iii) the completion of a
pre-feasibility study; (iv) the details of the Transaction; (v) the financial
viability of the Gunnison Project; and (vi) the ability to mine Gunnison using
in-situ recovery mining techniques are forward-looking statements. 


In certain cases, forward-looking information can be identified by the use of
words such as "plans", "expects" or "does not expect", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not
anticipate", or "believes", or variations of such words and phrases or state
that certain actions, events or results "may", "could", "would", "might" or
"will be taken", "occur" or "be achieved" suggesting future outcomes, or other
expectations, beliefs, plans, objectives, assumptions, intentions or statements
about future events or performance. Forward-looking information contained in
this news release is based on certain factors and assumptions regarding, among
other things, the estimation of mineral resources, the realization of resource
estimates, copper and other metal prices, the timing and amount of future
exploration and development expenditures, the estimation of initial and
sustaining capital requirements, the estimation of labour and operating costs,
the availability of necessary financing and materials to continue to explore and
develop the Gunnison Project in the short and long-term, the progress of
exploration and development activities, the receipt of necessary regulatory
approvals, the completion of the environmental assessment process, the
estimation of insurance coverage, and assumptions with respect to currency
fluctuations, environmental risks, title disputes or claims, and other similar
matters. While the Company considers these assumptions to be reasonable based on
information currently available to it, they may prove to be incorrect.


Forward looking information involves known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or achievements of
the Company to be materially different from any future results, performance or
achievements expressed or implied by the forward-looking information. Such
factors include risks inherent in the exploration and development of mineral
deposits, including risks relating to changes in project parameters as plans
continue to be redefined including the possibility that mining operations may
not commence at the Gunnison Project, risks relating to variations in mineral
resources, grade or recovery rates resulting from current exploration and
development activities, risks relating to the ability to access infrastructure,
risks relating to changes in copper and other commodity prices and the worldwide
demand for and supply of copper and related products, risks related to increased
competition in the market for copper and related products and in the mining
industry generally, risks related to current global financial conditions,
uncertainties inherent in the estimation of mineral resources, access and supply
risks, reliance on key personnel, operational risks inherent in the conduct of
mining activities, including the risk of accidents, labour disputes, increases
in capital and operating costs and the risk of delays or increased costs that
might be encountered during the development process, regulatory risks, including
risks relating to the acquisition of the necessary licenses and permits,
financing, capitalization and liquidity risks, including the risk that the
financing necessary to fund the exploration and development activities at the
Gunnison Project may not be available on satisfactory terms, or at all, risks
related to disputes concerning property titles and interest, environmental risks
and the additional risks identified in the Company's reports and filings with
applicable Canadian securities regulators. 


Although the Company has attempted to identify important factors that could
cause actual actions, events or results to differ materially from those
described in forward-looking information, there may be other factors that cause
actions, events or results not to be as anticipated, estimated or intended.
Accordingly, readers should not place undue reliance on forward-looking
information. The forward-looking information is made as of the date of this news
release. Except as required by applicable securities laws, the Company does not
undertake any obligation to publicly update or revise any forward-looking
information. 


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 release, and no securities
regulatory authority has either approved or disapproved of the contents of this
release.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Excelsior Mining Corp.
JJ Jennex
Vice President, Corporate Affairs
604-681-8030 x240
info@excelsiormining.com
www.excelsiormining.com

Excelsior Mining Corp. (TSXV:MIN)
Historical Stock Chart
Von Mai 2024 bis Jun 2024

Excelsior Mining Corp. (TSXV:MIN)
Historical Stock Chart
Von Jun 2023 bis Jun 2024