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Midnight Sun Signs Binding Letter of Intent and Term Sheet to Acquire Remaining 40% of Zambian Licences
VANCOUVER, BC / ACCESSWIRE / February 20, 2018 / Midnight Sun Mining Corp. (the " Company ",...
About this update from Midnight Sun Mining Corp.
[{"type":"text","content":"Midnight Sun Signs Binding Letter of Intent and Term Sheet to Acquire Remaining 40% of Zambian LicencesVANCOUVER, BC / ACCESSWIRE / February 20, 2018 / Midnight Sun Mining Corp. (the \"Company\", \"MMA\" or \"Midnight Sun\") (TSX-V: MMA) is pleased to announce that it has signed a binding letter of intent and term sheet (the \"Binding Letter and Term Sheet\") with Kam Chuen Resource Holdings Inc. (\"Kam Chuen\"), its joint venture partner in Zambian High Light Mining Investment Limited (\"ZHLMIL\"), to acquire the remaining 40% interest in ZHLMIL (the \"Purchased Shares\").\n Midnight Sun Agrees to Acquire Kam Chuen's Outstanding 40% Ownership in the Licences\nMidnight Sun previously satisfied its obligations under the Option Agreement with Kam Chuen, originally announced on November 29, 2013, pursuant to which it acquired a 60% interest in the Solwezi Group of Exploration Licences (the \"Licences\") from Kam Chuen, as shown in Illustration 1.0 - The Solwezi Group of Licences.\nOn February 18, 2018, Midnight Sun and Kam Chuen signed a Binding Letter of Intent and Term Sheet for the Company to acquire the remaining 40% interest in ZHLMIL for aggregate consideration of CA $30 million in cash payable over time, as illustrated below in Table 1.0 below (the \"Acquisition\"). The Acquisition will give Midnight Sun 100% equity ownership of ZHLMIL, which holds the Licences, and Kam Chuen will maintain a 2% net smelter returns royalty covering the Licenses.\nThe Company's President and Chief Executive Officer, Brett Richards stated, \"The acquisition of the remaining 40% of Zambian High Light Mining Investment Limited represents tremendous value and future optionality for Midnight Sun shareholders. With Midnight Sun now controlling 100% of the Licences, it will be able to efficiently drive and execute on its work programs in 2018 and 2019 by controlling all aspects of the exploration project. Assuming positive results in our forthcoming programs, I feel that the deferred payment structure provides Midnight Sun with adequate time to complete a large portion of our exploration work, whereby the increase in value will more than substantiate the current valuation of the payment structure. By owning 100% of the Licences, it also makes potential new partnerships and joint ventures much more attractive to third parties.\"\n\nTable 1.0 - Deferre...