Business
TNR Gold Corp. and McEwen Mining Inc. Agree to Convert TNR’s Back in Right to a NSR on the Los Azules Copper Project, Argentina
(via Thenewswire.ca) Vancouver, B.C. / TNW-ACCESSWIRE / October 17, 2014 / TNR Gold Co...
About this update from Tnr Gold Corp.
[{"type":"text","content":"TNR Gold Corp. and McEwen Mining Inc. Agree to Convert TNR’s Back in Right to a NSR on the Los Azules Copper Project, Argentina(via Thenewswire.ca)\n \n \nVancouver, B.C. / TNW-ACCESSWIRE / October 17, 2014 / TNR Gold Corp. (the \"Company\" or \"TNR) (TSX VENTURE:TNR.V ) announces that it has entered into a transfer agreement (the \"Transfer Agreement\") with McEwen Mining Inc. (NYSE:MUX, TSX:MUX) (\"McEwen\") pursuant to which the Company will convert all of rights and interests (the \"E&O Agreement Rights\") under a Cordon de Los Azules Exploration and Option Agreement dated effective as of May 15, 2004, as amended April 26, 2005 and November 8, 2012, including its 25% back-in right (the \"Back-In Right\") in the northern portion of the Los Azules Copper Project (the \"Project\") in San Juan Province, Argentina. The Back-In Right is exercisable following the completion of a feasibility study and if the Company elected to back-in for 5% or less or had its interest diluted to 5% or less, TNR would receive a net smelter royalty of 0.6% from the northern portion of the Project (see TNR News Release November 12, 2012).\n\n\n \nIn exchange for TNR converting the E&O Agreement Rights, McEwen will:\n\n \n \n(1) cause its wholly owned Argentinian subsidiary, Andes Corporacion Minera S.A. (\"Andes\") to enter into a net smelter royalty agreement with Compania Minera Solitario Argentina S.A. (\"Solitario\"), an Argentinian company controlled by TNR, pursuant to which Andes will pay Solitario a 0.4% net smelter returns royalty (\"NSR\") in respect of the entire Project;\n\n \n \n(2) issue TNR 850,000 common shares; and\n\n \n \n(3) pay TNR 1% of any purchase price paid to and received by McEwen in respect of any sale, assignment of transfer of all of its interest in the Project, to a party other than to an affiliate of McEwen, on or before the third anniversary of the Transfer Agreement.\n\n \n \nThe Company believes converting the E&O Agreement Rights are in the best interest of its shareholders because it clarifies the ambiguity surrounding the details of the Back-In Right and the conditions under which the Back-In Right can be exercised.\n\n \n \nGary Schellenberg, President and CEO of TNR commented, \"We have noted significant confusion in some of our shareholders regarding the particulars of the Back-In R...