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
SOURCE: Anglo Swiss Resources Inc.
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