Americas Bullion Royalty Corp. Announces Agreement to Sell Phoenix Joint Venture Interest
HAYDEN, ID, March 21, 2013 /CNW/ - Americas Bullion Royalty Corp. (TSX: AMB) (the "Company") is pleased to announce that it has entered into an option agreement to sell the Company's 40% joint venture interest in the Phoenix Property in Nevada to Battle Mountain Gold Inc., a private corporation ("BMG"). As consideration, BMG will pay $50,000 in cash and issue two million common shares at a value of $0.15 per share at closing, $50,000 in cash six months after closing and $1.6 million in cash or BMG common stock, assuming certain minimum valuations, twelve months after closing.
The Phoenix Joint Venture Project, a/k/a the Lewis Property, is directly contiguous with the Phoenix Mine placed into production by Newmont Mining in late 2006. Previous operators at Lewis focused their exploration efforts on the Virgin Zone, a major structural-stratigraphic corridor which hosts a portion of the mineralization at Newmont's adjacent Phoenix Mine. Their programs confirmed that the Virgin Zone extends onto the Lewis Property within a similar geological environment, for up to 4.5 km of potential strike length. 224 drill holes have been drilled on the project by the Operator of the Joint Venture.
The Company's Agreement with BMG has received regulatory approval.
The technical content of this news release has been reviewed and approved by Michael Maslowski, BSc, CPG, the Company's Chief Operating Officer and a Qualified Person as defined by National Instrument 43‐101.
Americas Bullion Royalty Corp.
Americas Bullion Royalty Corp. is a precious metals royalty and streaming company designed to provide revenue as well as lower risk exposure to shareholders through project diversity in stable, mining-friendly jurisdictions. The Company's existing 34 property portfolio, comprising more than 100,000 acres predominantly in Nevada, is highlighted by Gross in-kind Royalties on Midway Gold's Pan and Gold Rock deposits, as well as 2 separate projects encompassing more than 34 square miles at Barrick Gold's Bald Mountain project in Nevada.
Current royalty revenue is expected to accelerate as early as 2014 as several of these projects commence production. Americas Bullion Royalty Corp.'s prime royalty portfolio is unique in the mineral development industry due to its ability to receive the majority of projected revenues in-kind (gold bullion as opposed to cash), its possession of gross royalties with no exposure to operator cost, as well as its security of title with no buyback or buyout provisions
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.
SOURCE: Americas Bullion Royalty Corp.For further information:
Americas Bullion Royalty Corp.
Scott Powell, Director of Investor Relations
Janet Lee-Sheriff, Vice President Communications and First Nation Relations