HAYDEN, Idaho -- (Business Wire)
Americas Bullion Royalty Corp. (TSX: AMB) (âAmericas Bullionâ or
the âCompanyâ) announces that it has reached a settlement with MF
Investment Holding Company 1 (Cayman) Limited (âMF Investmentâ) 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. (âNRCâ), a
wholly owned subsidiary of Americas Bullion has entered into an
agreement of purchase and sale with Orion Royalty Company LLC (âOrionâ)
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.
âI 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,â said William M. Sheriff, Chairman &
CEO. âAmericas 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.â
Americas Bullion Royalty Corp.
Americas Bullion Royalty
Corp. invests in undervalued natural resource assets seeking to provide
superior investment returns. Americas Bullionâs 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 Bullionâs 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 |
Â
| Nature of Interest |
Bald Mountain Alligator (White Pine County, Nevada)
|
Â
|
1% gross sales royalty payable by Barrick Gold U.S. Inc.
|
Bald Mountain Duke Trapper Royale (White Pine County, Nevada)
|
Â
|
right to receive payments pursuant to lease agreement
|
Frost (Malheur County, Oregon)
|
Â
|
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)
|
Â
|
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)
|
Â
|
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)
|
Â
|
2% net smelter royalty for precious metals and 1% net smelter
royalty for all other metals and minerals
|
Kobeh (Eureka County, Nevada)
|
Â
|
2% net smelter royalty for precious metals and 1% net smelter
royalty for all other metals and minerals
|
Landmark (Nye County, Nevada)
|
Â
|
2% net smelter royalty for precious metals and 1% net smelter
royalty for all other metals and minerals
|
Magistral (Municipality of Ameca, Jalisco, Mexico)
|
Â
|
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)
|
Â
|
right to receive payments pursuant to lease agreement
|
Mt. Hamilton (White Pine County, Nevada)
|
Â
|
2% net smelter royalty for precious metals and 1% net smelter royalty
|
Pan Property (White Pine County, Nevada)
|
Â
|
right to receive payments pursuant to lease agreement
|
Rattlesnake Hills (Natrona County, Wyoming)
|
Â
|
0.5% net smelter royalty.
|
Tonkin Springs (Eureka County, Nevada)
|
Â
|
1.4% net smelter royalty on gold, subject to special provisions
|
Trail (Eureka County, Nevada)
|
Â
|
2% net smelter royalty for precious metals and 1% net smelter
royalty for all other metals and minerals
|
Treasure Hill (White Pine County, Nevada)
|
Â
|
1% net profits royalty
|
UNR (Eureka County, Nevada)
|
Â
|
2% net smelter royalty for precious metals and 1% net smelter
royalty for all other metals and minerals
|
Taylor (White Pine County, Nevada)
|
Â
|
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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