Rio Tinto to Provide $750,000 Cash Injection to Pistol Bay
Vancouver, British Columbia--(Newsfile Corp. - March 28, 2017) - Pistol Bay Mining Inc. (TSXV: PST) (FSE: OQS2) ("Pistol Bay" or the "Company") is pleased to report that the Company has entered into an amending agreement with Rio Tinto Exploration Canada Inc. ("RTECI" or "Rio Tinto"), with regards to the C 4, 5 and 6 Uranium properties, whereby Rio Tinto will make an initial cash payment of $750,000 to Pistol Bay.
The C block of Uranium properties, located in the Athabasca Basin of Saskatchewan, is under option to Rio Tinto, which has earned a 75-per-cent interest to date. Rio Tinto has previously indicated its intention to exercise the further option to acquire a 100-per-cent interest by paying Pistol Bay $5-million on or before Dec. 31, 2019, and granting Pistol Bay a 5-per-cent net profit interest (see Pistol Bay news release of Feb. 16, 2015).
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: "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."
About Pistol Bay Mining Inc.
Pistol Bay Mining Inc. is a diversified junior Canadian mineral exploration company with a focus on precious and base metal properties in North America. For additional information please contact Charles Desjardins - email@example.com.
On Behalf of the Board of Directors
PISTOL BAY MINING INC.
President and Director
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