Currie Rose Resources Inc. Scadding Project Update
Toronto, Ontario--(Newsfile Corp. - April 30, 2019) - Currie Rose Resources Inc. (TSXV: CUI) ("Currie Rose" or the "Company") is pleased to announce that the Company has reached agreement to sell its 49% interest in the Scadding Project ("Scadding") located north-east of Sudbury in Ontario to MacDonald Mines Exploration Ltd. (TSXV: BMK) ("MacDonald Mines").
Under the agreed terms, Currie Rose will sell its 49% interest in the Scadding Project in exchange for:
- 8,000,000 shares of MacDonald Mines
- $50,000 payment on transfer of title
- Work obligation of $1.5m over a three-year period
In addition, Currie Rose has agreed to modify its existing 3% NSR and its $2,000,000 commercial production payment as follows:
Reduce the NSR from 3% to 2.5% on payment of $2,000,000 (on reaching commercial production)
Provide a buyback provision on 1% of the NSR for $1,000,000
The agreement will be subject to both a standstill clause and voting requirements
Michael Griffiths, Currie's President and CEO, commented;
"Scadding has been stalled for a number of years due to a lack of expenditure. MacDonald Mines bring new energy and cash to reinvigorate exploration to advance the project towards development. We have retained our cash payment on commercial production and re-visited the Royalty providing potential for more cash up front, leverage to the success of MacDonald Mines as a shareholder plus significant expenditure commitments over the next 3 years."
The Scadding Mine site is located in Scadding Township near the Wanapitei - Ashigami Lakes district near Sudbury, Ontario. The site was initially mined by Northgate Exploration in the mid-80's and produced approximately 30,000 ounces. Mining operations by Northgate were ceased due to low gold prices and the property has seen bouts of sporadic exploration since. Currie considers that opportunity exists to expand on the mine's footprint and bring the project back into production.
FOR ADDITIONAL INFORMATION IN RESPECT OF CURRIE ROSE, PLEASE CONTACT:
Mike Griffiths, CEO
Catherine Beckett, Manager Corporate Affairs
About Currie Rose Resources Inc.
Currie Rose is a precious metal explorer focused on identifying high value assets in Canada. Our current projects span British Columbia and Ontario with our immediate focus on the recently acquired Rossland Project in BC.
Please visit our website located at www.currierose.com
Forward Looking Statements
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 release.
This news release may contain forward-looking statements that are based on the Company's expectations, estimates and projections regarding its business and the economic environment in which it operates. Statements about the closing of the transaction, expected terms of the transaction, the number of securities of Currie Rose that may be issued in connection with the transaction, and the parties' ability to satisfy closing conditions and receive necessary approvals are all forward-looking information. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Therefore, actual outcomes and results may differ materially from those expressed in these forward-looking statements and readers should not place undue reliance on such statements. Statements speak only as of the date on which they are made, and the Company undertakes no obligation to update them publicly to reflect new information or the occurrence of future events or circumstances, unless otherwise required to do so by law.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/44439