Aquila Resources Announces Letter of Intent for Sale of Its Bend and Reef Properties
01 Juni 2021 - 1:30PM
Business Wire
Aquila Resources Inc. (TSX: AQA,
OTCQB: AQARF) (“Aquila” or the “Company”) is pleased
to announce that it has entered into a non-binding letter of intent
(the “LOI”) to sell its interest in the Bend and Reef
exploration properties located in Wisconsin, USA to a private
company (“Newco”) (the “Transaction”). Subject to
necessary approvals, Newco intends to list on the TSX Venture
Exchange (the “TSX-V”) concurrent with the closing of the
Transaction. All dollar amounts are reported in Canadian
dollars.
Total consideration of $7,000,000
payable to Aquila will consist of:
- Cash consideration of $3,000,000,
of which $1,000,000 will be advanced immediately as a deposit (the
“Deposit”); and
- Shares in Newco with an estimated
value on completion of the go-public transaction of
$4,000,000.
Guy Le Bel, President & CEO of
Aquila, commented, “We are very pleased to have reached an
agreement in principle to monetize our non-core Wisconsin assets.
The Transaction provides Aquila with immediate cash without
diluting Aquila shareholders. It also provides us with meaningful
upside exposure to an exciting new exploration focused company with
the resources to explore the Bend and Reef properties as Aquila
focuses on the development of Back Forty.”
Completion of the Transaction is
subject to certain conditions including, but not limited to, the
completion of definitive documentation, completion of financing by
Newco, listing of Newco on the TSX-V and receipt of all necessary
third-party consents and approvals, including the approval of the
TSX-V. In the event the Transaction does not close, Aquila will
return the Deposit in shares of Aquila (subject to the receipt of
all necessary approvals of the Toronto Stock Exchange) or in cash,
depending on the circumstances.
ABOUT AQUILA Aquila Resources Inc. (TSX: AQA, OTCQB:
AQARF) is a development‐stage company focused on high grade
polymetallic projects in the Upper Midwest, USA. Aquila’s
experienced management team is currently advancing pre-construction
activities for its flagship 100%‐owned gold and zinc‐rich Back
Forty Project in Michigan.
The Back Forty Project is a
volcanogenic massive sulfide deposit with open pit and underground
potential located along the mineral‐rich Penokean Volcanic Belt in
Michigan’s Upper Peninsula. Back Forty contains approximately 1.1
million ounces of gold and 1.2 billion pounds of zinc in the
Measured & Indicated Mineral Resource classifications, with
additional exploration upside. An optimized Feasibility Study for
the Project is underway.
Aquila has two other exploration projects: Reef Gold Project
located in Marathon County, Wisconsin and the Bend Project located
in Taylor County, Wisconsin. Reef is a gold-copper property and
Bend is a volcanogenic massive sulfide occurrence containing copper
and gold.
Additional disclosure of Aquila’s
financial statements, technical reports, material change reports,
news releases and other information can be obtained at
www.aquilaresources.com or on SEDAR at www.sedar.com.
Cautionary statement regarding
forward-looking information
This press release may contain
certain forward-looking statements. In certain cases,
forward-looking statements can be identified by the use of words
such as “plans”, “expects” or “does not anticipate”, or “believes”,
or variations of such words and phrases or statements that certain
actions, events or results “may”, “could”, “would”, “might” or
“will be taken”, “occur” or “be achieved”. In particular, this news
release contains forward-looking information pertaining to the
following: the ability of the Company to close the Transaction on
the terms outlined in the LOI or at all, the ability of Newco to
list on the TSX-V, and other development plans and objectives.
Forward-looking statements and information are subject to various
known and unknown risks and uncertainties, many of which are beyond
the ability of Aquila to control or predict, that may cause their
actual results, performance or achievements to be materially
different from those expressed or implied thereby, and are
developed based on assumptions about such risks, uncertainties and
other factors set out herein, including but not limited to: risks
with respect to the COVID-19 pandemic; and other related risks and
uncertainties, including, but not limited to, risks and
uncertainties disclosed in Aquila’s filings on its website at
www.aquilaresources.com and on SEDAR at www.sedar.com. Aquila
undertakes no obligation to update forward-looking information
except as required by applicable law. Such forward-looking
information represents Aquila’s best judgment based on information
currently available. No forward-looking statement can be guaranteed
and actual future results may vary materially. Accordingly, readers
are advised not to place undue reliance on forward-looking
statements or information. Furthermore, mineral resources that are
not mineral reserves do not have demonstrated economic
viability.
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version on businesswire.com: https://www.businesswire.com/news/home/20210601005209/en/
Guy Le Bel, President & CEO Tel: 450.582.6789
glebel@aquilaresources.com
David Carew, VP Corporate Development & Investor Relations
Tel: 647.943.5677 dcarew@aquilaresources.com