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TriMetals Mining Signs Letter of Intent to sell its 100% interest in the Escalones Copper Project to Wealth Minerals Ltd. To Create New Chilean Copper Focused Company
DENVER, Dec. 04, 2018 (GLOBE NEWSWIRE) -- TriMetals Mining Inc. (TSX: TMI) (OTCQX:TMIAF), (“TMI” or the “Company”), announces that the Company has executed a le
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[{"type":"text","content":" DENVER, Dec. 04, 2018 (GLOBE NEWSWIRE) -- TriMetals Mining Inc. (TSX: TMI) (OTCQX:TMIAF), (“TMI” or the “Company”), announces that the Company has executed a letter of intent (the “LOI”) with Wealth Minerals Ltd. (TSXV:WML) (“Wealth Minerals”), a Vancouver BC, Canada based mineral exploration company, with respect to the divestiture of the Company’s 100% interest in the Escalones Copper Project in Chile (the “Escalones Copper Project”) to a newly formed, copper-focused, subsidiary of Wealth Minerals (“Wealth Copper”) that Wealth Minerals is to spin-out to its shareholders (the “Spin-Out”). Eric Edwards, President & CEO of TMI commented, “We are very pleased to be partnering with Wealth Minerals to advance exploration on the large and prospective Escalones Copper Project. Wealth has a demonstrated history and experience in discovering and advancing exploration and development projects worldwide. Their technical and financing teams have repeatedly demonstrated their unique ability to identify projects at an early stage that have the potential to become major producing projects. We look forward to the next phases of discovery and value addition at Escalones under Wealth leadership”. In consideration for the sale of the Escalones Copper Project to Wealth Copper, Wealth Copper is to issue to TMI such number of common shares that represents 30% of its issued and outstanding common shares and will pay to TMI a total of Cdn$1.0 million in cash in installments of which Cdn$150,000 is to be paid now, and of which Cdn$350,000 is to be paid on the closing of the Wealth Copper Private Placement (as defined below), with the remaining Cdn$500,000 to be paid on the one year anniversary of closing of the Wealth Copper Private Placement. In addition, a wholly-owned Chilean subsidiary of Wealth Copper (“Wealth Copper Chile”) is to grant TMI a 2% net smelter returns royalty payable on production from the Escalones Copper Project concessions, if the copper price is greater than US$0.75 per pound, and a 1% net smelter returns royalty if the copper price is equal to or less than US$0.75 per pound, subject to a buy-back right. Under the terms of the LOI, Wealth Minerals will have a 45 day exclusivity period to complete its technical and legal due diligence on the Escalones Copper Project and the subsidiarie...