CMQ announces acquisition of South Sleeper property and withdrawal of notice of termination
CALGARY, Feb. 26, 2014 /CNW/ - CMQ Resources Inc. (TSXV: NV) ("CMQ") today announced that Montezuma Mines Inc., a subsidiary of CMQ ("Montezuma"), and Geologix (US) Inc. ("Geologix") have executed a Purchase Agreement (the "Agreement") in respect of the sale by Geologix of all of its interest in the unpatented mining claims making up CMQ's South Sleeper project (the "Property"). The Agreement provides for a total purchase price for the Property of US$400,000, which amounts have now been paid by Montezuma. The Agreement reserves to Geologix a mineral protection royalty equal to one percent of the net smelter returns from production of minerals mined from the Property with an option for Montezuma to purchase one-half of such royalty in the future for a price of US$2,000,000. In connection with the execution of the Agreement, the previously existing exploration agreement in respect of the South Sleeper property has been terminated. In order to fund the purchase price under the Agreement Matco Investments Ltd. has provided CMQ with an unsecured advance in the amount of Cdn$550,000, which advance bears interest at a rate of 9%.
Additionally, CMQ is pleased to announce that Montezuma has entered into an agreement with Miranda Gold Corp. ("Miranda") whereby Miranda has agreed to withdraw its previously delivered notice of termination in respect of Miranda's Red Canyon project and Miranda and Montezuma have agreed to the terms of a joint venture agreement in respect of the Red Canyon property. Such agreement is currently being finalized between the parties.
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This press release contains certain forward-looking statements and forward-looking information (collectively referred to herein as "forward-looking statements") within the meaning of Canadian securities laws, including with respect to the completion of a Joint Venture Agreement with Miranda. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements typically contain statements with words such as "anticipate", "believe", "plan", "continuous", "estimate", "expect", "intend", "may", "will", "shall", "project", "would", "should", or similar words suggesting future outcomes.
Undue reliance should not be placed on forward-looking statements, which are inherently uncertain, are based on estimates and assumptions, and are subject to known and unknown risks and uncertainties (both general and specific) that contribute to the possibility that the future events or circumstances contemplated by the forward-looking statements will not occur. There can be no assurance that the plans, intentions or expectations upon which forward-looking statements are based will in fact be realized. Actual results will differ, and the difference may be material and adverse to CMQ and shareholders. Forward-looking statements are based on management's current beliefs as well as assumptions made by, and information currently available to, management. Though management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks that forward-looking statements will not be achieved. The forward-looking statements contained in this press release are made as of the date hereof and CMQ does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, except as required by applicable law. The forward-looking statements contained herein are expressly qualified by this cautionary statement.
SOURCE CMQ Resources Inc.For further information:
John Hogg, Chief Executive Officer, CMQ Resources Inc., Tel: (775) 778-3693, E-mail firstname.lastname@example.org