Rio Tinto Injects Cash into Pistol Bay Mining

ZURICH, SWITZERLAND / ACCESSWIRE / March 28, 2017 / About 2 months ago, Pistol Bay Mining Inc. (TSX-V: PST) reported that mining giant Rio Tinto has started to drill 4-6 holes on the C5 uranium property in the prolific Athabasca Basin. Today, Pistol Bay announced to have entered into an amending agreement with Rio Tinto Exploration Canada Inc. with regard to the C 4, 5, and 6 Uranium properties, whereby Rio Tinto will make an initial cash payment of $750,000 to Pistol Bay within the next 3 weeks.

Under the amending agreement, Rio Tinto will acquire an additional 25% interest in the Property (thereby increasing its aggregate interest to 100%), by:

(a) paying Pistol Bay $750,000 on or before April 17, 2017; and

(b) paying Pistol Bay one of the following payments:

• (i) $1,500,000 on or before 31 December 2017;
• (ii) $2,000,000 on or before 31 December 2018; or
• (iii) $2,250,000 on or before 31 December 2019.

Pistol Bay will retain a 5% net profits interest in the Property.

Charles Desjardins, CEO of Pistol Bay, commented today:

"Rio Tinto's payment does not dilute the Company and allows Pistol Bay to expand the scope of its upcoming exploration work, including drilling, on its Confederation Lake greenstone belt zinc-copper-gold project. We look forward to continuing our working relationship with Rio Tinto."

The full report can be accessed with the following links:

English (PDF): http://rockstone-research.com/images/PDF/PistolBay5en.pdf

English (web version): http://rockstone-research.com/index.php/en/research-reports/2801-Rio-Tinto-injects-cash-into-Pistol-Bay

German (PDF): http://rockstone-research.com/images/PDF/PistolBay5de.pdf

Disclaimer: Please read the full disclaimer within the full research report as a PDF as fundamental risks and conflicts of interest exist.

SOURCE: Rockstone Research