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Canasil Signs Letter of Intent Providing for Pan American to Acquire Canasil's Interest in the Sandra-Escobar Project for CDN $2 Million and 2% NSR
Canasil Signs Letter of Intent Providing for Pan American to Acquire Canasil's Interest in...
About this update from Canasil Resources Inc.
[{"type":"text","content":"\n\n\n\nCanasil Signs Letter of Intent Providing for Pan American to Acquire Canasil's Interest in the Sandra-Escobar Project for CDN $2 Million and 2% NSR\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n\n\n\n\n\n\n\nCanada NewsWire\nVANCOUVER, Oct. 24, 2018\n\n\n\nTSX-V: CLZwww.canasil.com    \n VANCOUVER, Oct. 24, 2018 /CNW/ - Canasil Resources Inc. (TSX-V: CLZ, DB Frankfurt: 3CC, \"Canasil\" or the \"Company\") announces that the Company and Pan American Silver Corp. (TSX: PAAS, NASDAQ: PAAS), through its subsidiary Plata Panamericana SA de CV (\"Pan American\"), have signed a non-binding Letter of Intent (\"LOI\") providing for Pan American to acquire Canasil's interest in the Sandra-Escobar project in Durango, Mexico. The LOI provides for the parties to enter into a Definitive Agreement covering the acquisition of Canasil's interest by Pan American for a payment of CDN $2 million and grant of a 2% net smelter returns royalty on Pan American's interest in the project (\"NSR Royalty\"). Pan American will have the right to reduce the NSR Royalty to 1% at any time by paying the Company CDN $4 million. The parties anticipate completing the Definitive Agreement by the end of November 2018. The Definitive Agreement will supersede all prior agreements and arrangements between Canasil and Pan American with respect to the Sandra-Escobar project. \nCanasil CEO, Bahman Yamini, commented: \"We look forward to finalizing the Definitive Agreement with Pan American for the sale of Canasil's interest in Sandra-Escobar, which will provide a source of significant non-dilutive funding to maintain and advance our current project portfolio. In addition to the cash payment Canasil will retain exposure to the upside potential of the Sandra-Escobar project through the retained NSR.\" \nSandra and Escobar Silver-Gold Properties, Durango, Mexico\nThe Sandra and Escobar Properties are located 200 km northwest of the city of Durango, Mexico, in the heart of the \"Mexican Silver Trend\", with excellent access and infrastructure.  This prolific trend...