Business
Anglo Swiss Amends the Terms of the Sale of its Kenville Gold Property
VANCOUVER , July 4, 2013 /CNW/ - Anglo Swiss Resources Inc. (ASW: TSX-V, ASWRF: PK) (" A...
About this update from Gungnir Resources Inc
[{"type":"text","content":"\n\n\nVANCOUVER, July 4, 2013 /CNW/ - Anglo Swiss Resources Inc. (ASW: TSX-V,\n ASWRF: PK) (\"Anglo Swiss\" or the \"Company\") wishes to announce that it has amended the terms of the agreement to\n sell its Kenville Gold Property (the \"Property\"), located in southeastern BC, to Eagle Creek Gold Corp. (\"Eagle Creek\"), a private Alberta based company.\n\n\nTotal consideration for the purchase of the Property has been reduced to\n CDN$8,000,000 which shall be satisfied by the delivery to Anglo Swiss\n of the $100,000 deposit (received) and $1,900,000 on closing, scheduled\n for August 15, 2013, with the balance payable in stages to August 15,\n 2017.\n\n\nAdditionally, Eagle Creek shall pay Anglo Swiss a perpetual 1% Net\n Smelter Royalty on all production from the Property. Eagle Creek is\n committed to invest a minimum of $5,000,000 into mining operations on\n the Property and to make all reasonable efforts to initiate one hundred\n (100) tonnes of production per day from the underground vein structures\n contained within the Property.\n\n\nJari Paakki, CEO commented, \"The volatility in the price of gold has\n caused the financiers of Eagle Creek to require an adjustment in\n payment due on closing and a reduction in the total consideration as\n well as an extension of time to pay the balance.  If the price of gold\n is greater than or equal to US$1,700 per ounce for any six (6) calendar\n months between January 1, 2015 and December 31, 2017, a further advance\n royalty payment of $2,000,000 shall be payable December 31, 2017.  The\n Kenville Gold Property remains a perfect fit for a private company with\n the goal of achieving small-scale production. The transaction will\n still provide Anglo Swiss with appreciable short term cash allowing us\n to identify and acquire a new asset with the potential for larger scale\n production and to advance the Company's Blu Starr Flake Graphite\n project as well as a further long term royalty payment. Cash payments\n into 2017 provide the Company with sustained working capital,\n minimizing near-term financings and share dilution. This is an\n exceptional opportunity that we believe will greatly improve the\n Company's future ability to grow and increase shareholder value.\"\n\n\nCompletion of the transaction is subject to approval of the shareholders\n of Anglo Swiss at the S...