OAKVILLE, ON, Oct. 21, 2014 /CNW/ - Canoe Mining Ventures Corp. (TSXV: CLV) ("Canoe") has completed a settlement agreement (the "Agreement") with Alto Ventures Ltd. ("Alto") whereby upon satisfying the terms and conditions set out in the Agreement a debenture held by Alto charging a 40% interest in Canoe's Coldstream Property will be discharged resulting in Canoe holding an unencumbered 100% interest in the Coldstream Property located in the Shebandowan Belt in Ontario.
Duane Parnham, President and CEO of Canoe, stated: "We have executed an agreement with Alto which settles the debenture at a reduced price and provides Canoe with full unencumbered ownership of the Coldstream Property. Canoe will now realize the full benefits of any exploration success and is well-positioned to carry out its planned exploration programs targeted at expanding the compliant copper and gold deposits on the Coldstream Property and extending a gold trend on the southern portion of the Coldstream Property that borders Wesdome Gold Mines Ltd.'s Moss Lake gold deposit."
By way of a background to the Agreement, Canoe acquired Birch Hill Gold Inc. ("Birch Hill") on March 26, 2014, whereby Birch Hill owed a debt to Alto in the amount of $768,942 (the "Debt") which was secured by way of a debenture that charged a 40% interest in the Coldstream Property. The Agreement represents the full and final satisfaction of the Debt owing to Alto. Pursuant to the terms of the Agreement and subject to the approval of all required regulatory approval, including that of the TSX Venture Exchange Inc., Canoe will issue a deemed value of $250,000 in shares of Canoe priced at the 10 day weighted average closing price of Canoe on October 20, 2014 and has agreed to pay Alto $50,000 immediately with an additional $200,000 payable in 3 instalments between December 31, 2014 and June 30, 2015. Canoe has granted Alto net smelter returns royalties ranging from 0.5% to 1.5% on certain portions of the Coldstream Property.
Canoe has the first right to arrange for the purchase of any of the common shares issued to Alto in connection with the Agreement. In the event that Alto wishes to dispose of any portion of their common shares of Canoe they must notify Canoe in writing, after which Canoe will have five business days to repurchase or arrange for the repurchase of these shares.
Neither the 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 news release.
On Behalf of the Board of Directors of Canoe Mining,
Duane Parnham, President and CEO
SOURCE: Canoe Mining Ventures Corp.
For further information: Duane Parnham, President and CEO, Director, Canoe Mining Ventures Corp, Tel: 1.905.844.7612 ext.236; Luke Vigeant, Manager, Investor Relations, Canoe Mining Ventures Corp., Tel: 1.905.844.7612 ext.237, Email: [email protected]