Silver Spruce Resources Closes Sale of Kay Mine Project
TSX VENTURE: SSE
BRIDGEWATER, NS / ACCESSWIRE / January 30, 2019 / (TSXV: SSE) - Silver Spruce Resources Inc. ("Silver Spruce" or the "Company") is pleased to announce that it has completed the sale of the Kay Mine project to Croesus Gold Corp., a private company that intends to go public on a Canadian stock exchange.
The terms of the transaction are as follows:
- Croesus has assumed the U$450,000 debt provided to the Company to satisfy its original purchase of the patented claims at the project, along with US$31,500 accrued interest, and
- The Company has transferred the patented land and its unpatented claims to Croesus and has received US$27,731.76 cash after the Company's portion of the closing costs were applied, and
- Within six months of closing, and the announcement by Croesus of a public listing, the Company will receive CDN$100,000 cash payment from Croesus and CDN$250,000 worth of Croesus shares upon its listing on a public stock exchange.
"In addition to the immediate sale proceeds, the future $100,000 cash payment and the elimination of our debt obligation, this deal allows the Company to transform part of our direct ownership in the Kay Mine project to an indirect ownership. By holding $250,000 of Croesus public shares, when they go public, our shareholders will maintain a stake in the potential upside at Kay. The completion of the Kay Mine sale, in addition to our current financing, will allow the Company to focus on advancing the fully-permitted drill program at our Pino de Plata project in Mexico," stated Karl Boltz, CEO of Silver Spruce.
About Silver Spruce Resources Inc.
Silver Spruce Resources Inc. is a Canadian junior exploration company pursuing exploration and development of the Pino De Plata epithermal silver/base metal/gold project located in the prolific Sierra Madre Occidental region of western Chihuahua State in Mexico.
Neither 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. The company seeks Safe Harbour.