Viscount Mining Announces Entry into Option Agreement for Acquisition of Colorado Property

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[{"type":"text","content":"Viscount Mining Announces Entry into Option Agreement for Acquisition of Colorado Property(via Thenewswire.ca)\n \n \nVancouver, BC / TNW-ACCESSWIRE / August 18, 2014 / Viscount Mining Corp. (TSX VENTURE: VML) (\"Viscount\" or the \"Company\") is pleased to announce that it has entered into an option agreement dated August 13, 2014 (the \"Agreement\") for the acquisition of a 100% interest (the \"Option\") in certain mining claims located in the State of Colorado 50 miles west of Pueblo, known as the Silver Cliff Property (the \"Property\"). The Agreement remains subject to acceptance from the TSX Venture Exchange (the \"Exchange\").\n\n\n \nTo exercise the Option, Viscount must make cash payments in the aggregate amount of US$3,000,000 over a period of up to 13 years and issue a total of 200,000 of each of its common shares and common share purchase warrants to the Property vendors (the \"Vendors\"), which securities will be released in equal stages over a four year period following receipt of Exchange approval. The warrants will be exercisable at the greater of CDN$0.20 or the market price at the time of issuance for a period of three years. \n\n \n \nThe Agreement does not contain provisions for mandated exploration expenditures but requires Viscount to make certain claim rental fees on behalf of the Vendors. In addition, as operator during the option period, Viscount will be required to file all regulatory exploration reports and keep the Property in good standing. \n\n \n \nAt the time of commencement of commercial production on the Property, the Vendors will be granted an additional 500,000 shares and warrants of Viscount and will retain a 2% net smelter returns royalty (the \"NSR Royalty\"). The NSR Royalty is subject to a buy-back right in favour of Viscount at any time prior to commencement of commercial production on any particular deposit, to repurchase 1% of the NSR Royalty from the Vendors. The purchase price for such buy-back will be an amount equal to the value of 0.5% of all commercially mineable and proven and probable reserves on the subject deposit determined pursuant to a National Instrument 43-101 compliant Feasibility Study, with the mineral price to be based on the 30 day average price prior to Viscount giving notice of the intended NSR Royalty repurchase. \n\n \n \nSubject to Exchange approval, Viscount e...

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