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Enter Symbol
or Name
USA
CA



Americas Bullion Royalty Corp
Symbol AMB
Shares Issued 180,316,588
Close 2013-11-25 C$ 0.07
Market Cap C$ 12,622,161
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Americas Bullion settles with MF for $22.8-million

2013-11-26 14:10 ET - News Release


HAYDEN, Idaho -- (Business Wire)

Americas Bullion Royalty Corp. (TSX: AMB) (“Americas Bullion” or the “Company”) announces that it has reached a settlement with MF Investment Holding Company 1 (Cayman) Limited (“MF Investment”) with respect to the senior secured facility agreement dated September 25, 2012 whereby the full amount owing under the facility agreement will be applied to the purchase price of certain royalties. After giving effect to the transaction, the debt with MF Investment is retired and the Company will receive $22.8 million in cash.

Background
On June 24, 2013 Americas Bullion announced that MF Investment, part of Orion Resource Partners and the Red Kite Group, indicated that it had or intended on issuing notices alleging an Event of Default under the secured facility agreement and asserting rights to exercise an option to purchase twenty-six royalty interests, including the Pan and Bald Mountain interests, by paying Americas Bullion US$35 million.

Terms of the Settlement
Following amicable discussions, Americas Bullion has entered into an amendment to the senior secured facility agreement with MF Investment, pursuant to which a nominee of MF Investment exercised an option to purchase 18 royalties, including the Pan and the Bald Mountain royalty interests.

In connection with the option exercise, Nevada Royalty Corp. (“NRC”), a wholly owned subsidiary of Americas Bullion has entered into an agreement of purchase and sale with Orion Royalty Company LLC (“Orion”) pursuant to which NRC has completed the sale of certain royalties to Orion. Pursuant to the agreement, AMB retired its debt to MF Investments and NRC received an initial payment of US$8.8 million. NRC will receive a further US$14 million upon certain post-closing deliveries being satisfied.

The list of royalty interests to be transferred to Orion is attached below. For a complete list of assets to be retained by Americas Bullion please visit: www.aubullion.com.

“I am pleased to have reached a mutually beneficial agreement with Red Kite and Orion where their interests have been met while our shareholders clearly benefit from having received market value for certain of our royalty interests,” said William M. Sheriff, Chairman & CEO. “Americas Bullion, in addition to retiring the Red Kite debt and netting approximately US$22 million cash from this transaction, continues to hold 14 royalty interests, other significant Nevada assets, and its Yukon holdings including the Brewery Creek project. The Board sees great opportunity to build from this cash position in the current market.”

Americas Bullion Royalty Corp.
Americas Bullion Royalty Corp. invests in undervalued natural resource assets seeking to provide superior investment returns. Americas Bullion’s assets include royalty holdings across Mexico, Nevada, Wyoming, Oregon and California; control of the Springer Tungsten Mine and Mill; the Taylor mill and Humboldt mill site in Nevada; the Brewery Creek project, and a portfolio of Yukon exploration properties. The Company provides shareholders with the potential for exploration success through equity positions in related companies while continuing to advance and monetize its holdings.

For additional information:
Americas Bullion Royalty Corp.
William M. Sheriff, Chairman & CEO
(208) 635-5415
info@aubullion.com
www.aubullion.com

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This press release contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance. There are numerous risks and uncertainties that could cause actual results and Americas Bullion’s plans and objectives to differ materially from those expressed in the forward-looking information. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, Americas Bullion assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.

List of Royalties

Properties   Nature of Interest
Bald Mountain Alligator (White Pine County, Nevada)   1% gross sales royalty payable by Barrick Gold U.S. Inc.
Bald Mountain Duke Trapper Royale (White Pine County, Nevada)   right to receive payments pursuant to lease agreement
Frost (Malheur County, Oregon)   1% net profits royalty which will convert to 2% net smelter royalty for precious metals and 1% net smelter royalty for all other metals and minerals if an underlying royalty ceases to be payable for mining claims.
Gabel (Eureka County, Nevada)   2% net smelter royalty for precious metals and 1% net smelter royalty for all other metals and minerals and 1% net profits royalty with respect to mining claims held under lease.
GQ (Eureka County, Nevada)   2% net smelter royalty for precious metals and 1% net smelter royalty for all other metals and minerals for mining claims.
Kismet (White Pine County, Nevada)   2% net smelter royalty for precious metals and 1% net smelter royalty for all other metals and minerals
Kobeh (Eureka County, Nevada)   2% net smelter royalty for precious metals and 1% net smelter royalty for all other metals and minerals
Landmark (Nye County, Nevada)   2% net smelter royalty for precious metals and 1% net smelter royalty for all other metals and minerals
Magistral (Municipality of Ameca, Jalisco, Mexico)   2.0% net smelter returns royalty with respect to precious metals; and 1.0% of net smelter returns royalty with respect to all other metals and minerals.
Monte Property (White Pine County, Nevada)   right to receive payments pursuant to lease agreement
Mt. Hamilton (White Pine County, Nevada)   2% net smelter royalty for precious metals and 1% net smelter royalty
Pan Property (White Pine County, Nevada)   right to receive payments pursuant to lease agreement
Rattlesnake Hills (Natrona County, Wyoming)   0.5% net smelter royalty.
Tonkin Springs (Eureka County, Nevada)   1.4% net smelter royalty on gold, subject to special provisions
Trail (Eureka County, Nevada)   2% net smelter royalty for precious metals and 1% net smelter royalty for all other metals and minerals
Treasure Hill (White Pine County, Nevada)   1% net profits royalty
UNR (Eureka County, Nevada)   2% net smelter royalty for precious metals and 1% net smelter royalty for all other metals and minerals
Taylor (White Pine County, Nevada)   2% net smelter royalty for precious metals (1% with respect to claims subject to a purchase agreement between Anglo Nevada Metals Corporation and Agnico-Eagle (USA) Limited and 1% net smelter royalty for all other metals and minerals (0.5% with respect to claims subject to the Purchase Agreement), arising upon exercise of option by Silver Predator Corp.

Contacts:

Americas Bullion Royalty Corp.
William M. Sheriff, (208) 635-5415
Chairman & CEO
info@aubullion.com
www.aubullion.com

Source: Americas Bullion Royalty Corp.

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