VANCOUVER, Aug. 9, 2017 /CNW/ - ALTAIR RESOURCES INC. ("Altair" or the "Company") (TSX‑V: AVX; Germany FRA: 90A; ISIN: CA02137W1014; WKN: WKN A2ALMP) Mr. Harold (Roy) Shipes, President and CEO, is pleased to announce that the Company has entered into an asset purchase agreement dated August 1, 2017 (the "Asset Purchase Agreement") with Atlas Precious Metals Inc. (the "Vendor") to acquire the assets comprising a solvent extraction plant (the "Plant").
Pursuant to the terms of the Asset Purchase Agreement, the Company agreed to acquire the Plant in consideration for the Company making payments of: (i) US$150,000 cash, and (ii) US$270,000 payable by issuance of the Company's common shares (the "Consideration Shares") at a deemed value of Cdn$0.40 per Consideration Share. The Plant is comprised of nine mixer/settler combinations. The Plant was originally acquired by the Vendor in 2008 for use at the Pan American Mine; however, due to financial problems faced by the Vendor's development partner, development of the project was not completed and the Plant has been in storage since 2008. The Plant was offered to the Company at the time the Company acquired the Pan American Mine and Caselton mill (see the Company's press release dated April 5, 2017).
The Plant will be used to modify the Company's zinc and lead/silver flotation circuits at Caselton to treat tails produced from flotation containing manganese carbonate by adding an additional agitated acid leach circuit to recover manganese. Following leaching, the clarified soluble manganese sulfate solutions will pass to the Solvent Extraction Plant for upgrading and purification and then to Electro-winning to produce electro-manganese dioxide (EMD).
Closing of the acquisition is expected to be completed on or about August 31, 2017. All shares will be subject to a four month hold period. Harold Shipes, Altair's President and CEO is a director, officer and shareholder of the Vendor, and accordingly, this transaction is not an arm's length transaction. The Company has received an independent third party appraisal of the Plant and believes the purchase price fairly reflects the value of the Plant.
The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or the securities laws of any state of the United States, and may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws or pursuant to an exemption from such registration requirements.
To learn more about Altair, please visit http://www.altairresources.com/.
