Genius Properties Ltd.: Acquisition by Cerro De Pasco Resources S.A. of a 100% interest in El Metalurgista Concession

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[{"type":"text","content":"MONTRÉAL, QUÉBEC--(Marketwired - Jan. 23, 2018) - Genius Properties Ltd. (CSE:GNI) (CSE:GNI.CN) (CNSX:GNI) (\"Genius\" or the \"Corporation\") is pleased to announce that on January 12, 2018, Cerro de Pasco Resources S.A. (\"Cerro de Pasco\") exercised its option to acquire a 100% interest in the El Metalurgista Concession located in Peru (where the so-called Quiulacocha Tailings and Excelsior Stockpile are located). Cerro de Pasco executed the public deed whereby it formally acquired title over the concession and paid its former titleholder, Mr. Victor Freundt Orihuela, the balance of the USD853,700 purchase price. As a result, Cerro de Pasco is now the exclusive titleholder of the aforesaid concession, holding a 100% interest over it. Mr. Freundt retains the right to receive a 2% NSR royalty on the products obtained from the concession. This royalty can be bought back entirely by Cerro de Pasco as of initiation of commercial production in the concession, by paying a consideration of USD 3 million if the royalty is bought back by the end of the 2nd year, USD 3.5 million if bought back by the end of the 3rd year, or USD 4 million if bought back by the end of the 4th year. Cerro de Pasco's title, which is now binding, will also become enforceable before third parties and the Peruvian Government once the transfer contract is recorded with the Peruvian Public Registry, which is expected to be completed in the following few weeks. As previously announced, pursuant to a merger agreement entered into on November 9, 2017 between the Corporation and Cerro de Pasco (the \"Merger Agreement\"), the Corporation intends to acquire Cerro de Pasco, a private Peruvian corporation, by merging Cerro de Pasco with a branch of Genius to be established under Peruvian laws, such that existing security holders of Cerro de Pasco will become security holders of Genius (the \"Proposed Transaction\"). The Proposed Transaction is an arm's length fundamental change of the Corporation within the meaning of Policy 8 - Fundamental Changes & Changes of Business of the Canadian Securities Exchange (the \"Exchange\") and is subject to a number of conditions precedents, including the receipt of all requisite regulatory, corporate and shareholder approvals, including that of the Exchange. The Corporation and Cerro de Pasco continue to work towards the comp...

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