HAYDEN, ID, June 25, 2013 /CNW/ - Americas Bullion Royalty Corp. (TSX: AMB) announces that it has retained Borden Ladner Gervais LLP, with D. Ross
McGowan as lead counsel, in regards to the dispute with MF
Investments. MF Investment Holding Company 1 (Cayman) Limited, part of
the Red Kite Group, has indicated that it has or intends on issuing
notices alleging an Event of Default under the secured facility
agreement dated September 25, 2012 (the "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$35,000,000 in cash as set forth in section 7.6 of
the Facility Agreement. Americas Bullion rejects that any Event of
Default has occurred under the Facility Agreement, asserts that no
valid and effective notice has been issued upon it as required by the
Facility Agreement and has engaged legal counsel to challenge the
recent conduct of MF Investments.
The Company also announces that, effective June 25, 2013, William M.
Sheriff has resumed his position as Chairman and Chief Executive
Officer of the Company and Paul H. Zink has assumed the title of Chief
Investment Officer. The changes are solely related to the situation
described in the news release of June 24, 2013 and not to performance
or any other factor.
A copy of the executed Facility Agreement was posted on SEDAR on October
9th, 2012 (file name: Material Document) under Americas Bullion Royalty
Corp. To view the document please visit: http://sedar.com/DisplayCompanyDocuments.do?lang=EN&issuerNo=00028253
Americas Bullion Royalty Corp.
Americas Bullion Royalty Corp. focuses on acquiring precious metal
royalties and streaming assets which provide revenue as well as lower
risk exposure to shareholders through project diversity in stable,
mining-friendly jurisdictions. The Company's existing portfolio is
highlighted by Gross in-kind Royalties on Midway Gold's Pan and Gold
Rock deposits, as well as 2 separate royalties encompassing more than
34 square miles at Barrick Gold's Bald Mountain project in Nevada.
The Company holds additional royalties including Net Smelter Return
Royalties on the Taylor Silver project and a portion of the Tonkin
Springs project also in Nevada. The Company's royalty holdings comprise
more than 100,000 acres located primarily in Nevada, with 7 of the
projects located in Wyoming, Oregon, California and Mexico. 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 royalty industry due
to its ability to receive the majority of projected revenues in-kind (gold bullion as opposed to cash), its concentration of gross royalties
with no exposure to operator cost, as well as its security of title
with no buyback or buyout provisions. The Company continues to advance
or monetize other assets including its significant Yukon property
holdings, security holdings and the Taylor Mill in Nevada.
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.
Janet Lee-Sheriff, Vice President Communications and First Nation Relations