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VAL-D’OR, QUEBEC–(Marketwired – Sept. 18, 2017) – Metanor Resources Inc. (the “Corporation“) (TSX VENTURE:MTO) is pleased to announce that it has entered into an amending agreement with Sandstorm Gold Ltd., (“Sandstorm“) effectively reducing the existing gold steam on the Bachelor mine (which required Metanor to sell 20% of its gold production at the fixed price of US$500) and replacing it with a 3.9% net smelter return royalty (NSR) on all minerals produced from the Bachelor and Barry properties (includes the surrounding exploration properties), of which 2.1% of the royalty can be repurchased upon payment of US$2M for each property, thereby reducing the NSR to 1.8%.
These new terms will become effective once the Corporation has delivered to Sandstorm, 12,000 ounces of gold at the fixed price of $US500. As part of the consideration, the Corporation will issue a total of 3,164,156 common shares to Sandstorm, at the deemed price of $0.77 per common share, for an aggregate value of CA$2,436,400, upon closing of the transaction expected to take place on or about September 29, 2017, and, grant Sandstorm a right of first refusal for any royalty, metal stream or similar type of financing on the Bachelor and Barry properties.
Greg Gibson, Chairman and & CEO, stated: “With Metanor’s sound financial situation and this added flexibility for growth, we will be increasing our drill campaigns on the Bachelor property to unlock its full potential; the goal being to increase ounce production and revenue. In addition, Barry’s recent drill success gives us every indication that this once producing asset could very likely be revisited.”
The common shares to be issued will be subject to a four month hold period from the date of issue and this transaction remains subject to the acceptance of the TSX Venture Exchange.
About Metanor Resources Inc.
Metanor Resources Inc. is a Quebec based emerging gold producer having its main assets, the Bachelor mine and the Barry project, in addition to over 15,000 ha of exploration property, located in the mining-friendly jurisdiction of Quebec in the heart of the Urban-Barry Camp. With the support of strategic investors, a strong management team experienced at all levels of project development and project financing, Metanor is seeking growth through the development of its properties using a partnership approach with local communities.
Statements made in this press release, including those regarding the completion and closing of the transactions contemplated, management objectives, expectations, or predictions of the future may constitute “forward-looking statements”, which can be identified by the use of conditional or future tenses or by the use of such verbs as “believe”, “expect”, “may”, “will”, “should”, “anticipate”, “project”, “plan”, and words of similar import, including variations thereof. This press release contains forward- looking statements that reflect, as of the date of this press release, the Corporation’s expectations about that it will meet all required closing conditions, its operations, the mining industry and the economic environment in which it operates. Statements in this press release that are not supported by historical fact are forward-looking statements, meaning they involve risk, uncertainty and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Although the Corporation believes that the assumptions inherent in the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which apply only at the time of writing of this press release.
Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Metanor Resources Inc.
President & COO
Mon, 18 Sep 2017 22:59:43 GMT