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Sulliden Mining Capital announces investment of $2 million in Aguia Resources for 15.7% common shares and 1% NSR
TORONTO , Oct. 20, 2014 /CNW/ - Sulliden Mining Capital Inc. (TSX: SMC) ("Sulliden" or th...
About this update from Future Mineral Resources Inc.
[{"type":"text","content":"\n\nTORONTO, Oct. 20, 2014 /CNW/ - Sulliden Mining Capital Inc. (TSX: SMC) (\"Sulliden\" or the \"Company\") has entered into an agreement with Aguia Resources Ltd (\"Aguia\") (ASX: AGR) to acquire 40,000,000 Aguia ordinary shares, representing a 15.7% interest in Aguia. The Company has also acquired a 1% net smelter return royalty (\"NSR\") on the Rio Grande project held by Aguia. The aggregate purchase price for the shares and NSR royalty is AUD$2 million. \n\nAs part of the agreement, Sulliden will receive a board seat at Aguia, and has the right to participate in any future equity offerings by Aguia in order to maintain its proportionate equity interest. Furthermore, Aguia has the option to buy-back the NSR royalty for AUD$1 million at any time for up to three years after the closing of the transaction.  \n\nJustin Reid, President and CEO of Sulliden Mining Capital, commented, \"We believe this investment is a great opportunity for Sulliden. Our management has completed an extensive due diligence review of Aguia and the Rio Grande project, and we have great confidence in their team's ability to successfully advance this asset. Our board seat will allow us to take an active role in our investment by overseeing the execution of the project; and if needed, we also intend to offer support to Aguia's management as the project moves forward.\" \n\nSulliden is acquiring shares of Aguia for investment proposes. Other than the purchased shares, Sulliden has no current intention to increase the beneficial ownership of, or control or direction over, additional securities of Aguia. \n\nAbout Aguia Resources Ltd. \n\nAguia is an exploration and development stage phosphate and potash company with a portfolio of projects located along the eastern coast of Brazil. The Company is primarily focused on the flagship Rio Grande phosphate deposit, located in Rio Grande Do Sul, Brazil's southernmost state. This established farming area currently imports 100% of its phosphate needs (~500,000 tpa P2O5) as there are no existing operating mines nearby. The Rio Grande project is a collection of four new phosphate discoveries, one of which has JORC compliant resource of 9.9 Mt at 5.03% P2O5 (Indicated category) and 20.6 Mt at 3.94 % P2O5 (including a higher grade oxide zone from surface of 1.8Mt @ 10.9% P2O5, with only 45% of the mapped strike leng...