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Montan Mining Secures Improved Purchase Terms And Removes Nsr From The Rey Salomon Mining Project
(via Thenewswire.ca) -New Share Purchase Agreement between Cerr...
About this update from Fidelity Minerals Corp.
[{"type":"text","content":"Montan Mining Secures Improved Purchase Terms And Removes Nsr From The Rey Salomon Mining Project(via Thenewswire.ca)\n \n \n\n\n\n \n\n\n-New Share Purchase Agreement between Cerro Dorado S.A.C. and underlying Property Owners subststantially reduces acquisition cost of 100% rights and title to the Rey Salomon mine for Montan\n\n\n\n-New agreement represents an approximate 50% reduction in total payments for the purchase of the Rey Salomon mine and removes a 4% NSR Royalty1\n\n\n\n\n \n\n\n\n \nVancouver, BC / TheNewswire / August 23rd, 2016 - Montan Mining Corp. (TSXv: MNY | FSE: S5GM | SSE: MNYC) (\"Montan\" or the \"Company\") is pleased to announce that the Company has secured significantly improved terms between Cerro Dorado S.A.C. (\"CD\") and the underlying holders of the mineral title at the Rey Salomon gold mine that Montan is progressing to acquire from Chazel Capital Inc. (refer NR of July 14th, 2016). Minera Ofir S.A. (\"Ofir\"), the title holders, have in a Binding Indicative Term Sheet (\"Term Sheet\") agreed to expire their existing Option Agreement (of 2012) and Mining Lease Agreement (of 2014) on the Rey Salomon mine project (the \"Project\") in favour of a new Share Purchase Agreement wherein CD will purchase 100% of the outstanding shares of Ofir. Upon closing of the agreement between Chazel Capital Inc (\"Chazel\") and Montan for the purchase of CD by Montan, and subject to initialization of the Share Purchase Agreement (January 25th, 2017) and expiry of the Option and Mining Lease Agreements (January 31st, 2017), Montan will have 100% effective ownership of the Rey Salomon mine with no residual royalties.\n\n \n \nThe new Share Purchase Agreement requires that CD pays the shareholders of Ofir $453,968 USD in 24 payments over 2 years commencing on January 25th, 2017, and to pay interest on the outstanding balance monthly, at a 5% annual rate of interest. Shareholders of Ofir will hold no residual royalties or operating interest in the Rey Salomon project from January 31st, 2017, providing however that until the $453,968 payments complete, a mortgage over the the property will comprise security against payment. CD is entitled to accelerate payments at any time to complete the purchase and release security against the property.\n\n \n \nThe previous Option Agreement between CD and Ofir required an outstanding $...