Prism Resources Sells Aurora and Sunday Lake Royalties to AuRico Metals
TSX VENTURE: PRS
VANCOUVER, B.C., July 10, 2017 (GLOBE NEWSWIRE) -- Prism Resources Inc. (TSX.V:PRS) (the “Company”) announces that it has entered into an agreement with AuRico Metals Inc. and AuRico Metals Canadian Royalty Partnership (together “AuRico”) for the sale by the Company to AuRico of its 7.5% net profit interest (the “Royalty”) on the "Aurora Property" and “Sunday Lake Property” in the Porcupine Mining District, Northeastern Ontario. The “Aurora Property” and “Sunday Lake Property” are owned by Detour Gold Corp.
The transaction is scheduled to close on or about July 20, 2017. The transaction is subject to certain customary conditions, including regulatory approval.
The purchase price for the Royalty is comprised of: (i) $750,000 in cash, (ii) that number of common shares of AuRico Metals Inc. (“AuRico Shares”) equal to $750,000, based on the volume weighted average price of the AuRico Shares ON THE Toronto Stock Exchange for the ten (10) trading days prior to closing of the transaction, and (iii)a contingent payment of $2,000,000 if AuRico (or a permitted assignee) receives aggregate payments in respect of the Royalty equalling or exceeding $9,000,000 during the ten (10) year period following closing of the transaction.
If the Royalty is sold to a third party purchaser within two (2) years of closing, other than the sale by AuRico of the Royalty together with one or more other similar assets, the Company shall be entitled to receive a payment equal to 15% of the excess (if any) of the consideration for such third party sale over the amount payable to the Company at closing.
Finder’s fees in the amount of $120,000 cash and 888,889 common shares of the Company are payable by the Company to Eight Capital in connection with the sale of the Royalty.
The Company will use the proceeds of sale to further its advanced exploration program on the Huampar project near Lima, Peru.
About Prism Resources Inc.
Prism acquired the Huampar project from Trevali Mining Corporation (TSX:TV) and Nueva Condor, a private Peruvian mining company, in July of 2016. Our priority has been to establish good community relations and agreements which are in process. More recently our focus has been for the reconstruction of the mine models and organization of the databases in anticipation of a program designed to examine the reactivation of mining production. The mining rate will be determined based on the economics provided by the current study. To that end, JDS of Mining & Energy have been contracted to carry out a PEA on the Huampar reactivation project.