VANCOUVER, Feb. 12, 2014 /CNW/ - Anglo Swiss Resources Inc. (ASW: TSX-V)
(ASWRF: PK) ("Anglo Swiss" or the "Company") is pleased to announce that it has reached an agreement in principle
to acquire a private Ontario company, Gungnir Resources Inc. ("Gungnir"), and all of its exploration properties in northern Sweden. The
properties cover approximately 22,500 hectares (or 225 sq. km) within a
highly under-explored and prospective area known as the "Gold Line" in
the Skellefte Mining District of Sweden. The region hosts more than 12
million ounces of gold delineated in existing and mined resources plus
several producing and past-producing VMS base metal mines (See Map Figure 1).
"This is an exceptional opportunity for the Company moving forward",
stated Chris Robbins, Anglo Swiss' Vice President. "The acquisition
combines a huge exploration land package, targeting expertise and
turn-key entry into a new country. We are very excited to begin
exploration in Sweden".
Sweden is a leading miner and major gold, silver, copper and iron ore
producer in the EU and globally ranks 2nd in a 2012 Fraser Institute Survey for most attractive jurisdictions for
mineral exploration and development. Sweden offers great infrastructure
for exploration and excellent potential for new discoveries
particularly under the extensive but thin layer of glacial till that
masks bedrock over large areas of Sweden.
The Gungnir properties consist of the Nordanas and Knaften projects
located along the southeastern extension of the "Gold Line". The main
target is intrusion-related gold mineralization, an attractive but
under-explored deposit type. Examples of this type of gold deposit
include the Pogo, Fort Knox mine, and Donlin in Yukon/Alaska, and
Bjorkdal in Sweden which recently produced its millionth ounce of
gold. Initial prospecting by Gungnir Resources has identified large
clusters of anomalous gold and important pathfinder elements in locally
derived boulders and in outcrop. No drilling is reported on either
property in the Swedish Geological Survey archived drill hole database.
A $200,000 minimum exploration budget is proposed for 2014.
The consideration to be paid is $300,000 (to cover land acquisition
costs and exploration expenditures to date), issuing 32,586,512 shares
of Anglo Swiss, representing a 15% equity interest in Anglo Swiss after
giving effect to the acquisition, and the retention of a 2.4% net
smelter royalty ("NSR") by three of the shareholders of Gungnir with a buyout option of 50%
on the NSR for $1,000,000. Closing is expected by no later than May 30,
2014 or such other date agreed to by all parties.
Jari Paakki, CEO of Anglo Swiss is a minority investor in Gungnir and
will be issued $30,000 cash, 6,517,303 shares of Anglo Swiss and a
one-third interest in the NSR on closing (the "Insider Consideration"). The Insider Consideration issuable to Mr. Paakki is exempt from the
valuation and minority shareholder approval requirements of
Multilateral Instrument 61-101 ("MI 61-101") by virtue of the exemptions contained in section 5.5(a) and 5.7(1)(a)
of MI 61-101 in that the fair market value of the Insider Consideration
to be issued to Mr. Paakki does not exceed 25% of the Company's market
capitalization. Disinterested shareholder approval to the issuance of
the Insider Consideration will be sought at the Annual and Special
Meeting of the Company to be held in Toronto on March 28, 2014.
Completion of the transaction is subject to execution of a formal
agreement and a number of conditions, including, but not limited to,
financing of at least $500,000, confirmatory due diligence, the receipt
of all required regulatory approvals, including the approval of the TSX
Venture Exchange, and approval of the shareholders of Anglo Swiss.
Jari Paakki, P.Geo., CEO of Anglo Swiss, is the Qualified Person as
defined by National Instrument 43-101 and has reviewed and approved the
technical information in this news release.
ON BEHALF OF THE BOARD OF DIRECTORS,
Vice President and Director
About Anglo Swiss:
Anglo Swiss Resources Inc. is a Canadian-based exploration company.
Current assets include its Kenville Gold and Blu Starr Flake Graphite
properties in southeastern BC. Further information about the Company
may be found at http://www.anglo-swiss.com or at http://www.sedar.com.
Cautionary Note Regarding Forward-Looking Statements: Certain statements made herein may contain forward-looking statements
or information within the meaning of Canadian securities laws. Such
forward-looking statements or information include, but are not limited
to, statements or information with respect to Anglo Swiss Resources'
plan for future exploration and development of its properties.
Forward-looking statements or information are based on a number of
estimates and assumptions and are subject to a variety of risks and
uncertainties, which could cause actual events or results to differ
from those reflected in the forward-looking statements or information.
Should one or more of these risks and uncertainties materialize, or
should underlying estimates and assumptions prove incorrect, actual
results may vary materially from those described in forward-looking
statements or information. For example, there is no certainty, that
any economically viable mineral deposit will be located on the
Property, or that the Company will be able to raise sufficient capital
to complete all of its exploration and drill programs. Accordingly,
undue reliance should not be placed on forward-looking statements or
information. Anglo Swiss does not expect to update forward-looking
statements or information continually as conditions change, except as
may be required by securities law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release
PDF available at: http://stream1.newswire.ca/media/2014/02/12/20140212_C9490_DOC_EN_36592.pdf
SOURCE: Anglo Swiss Resources Inc.
For further information:
Chris Robbins, Vice President
Jari Paakki, CEO