VANCOUVER, May 25, 2015 /CNW/ - Wealth Minerals Limited. ("Wealth" or the "Company") - (TSXV: WML; Frankfurt: EJZ), announces that it has entered into a formal Share Purchase Agreement (the "Agreement") with Coronet Metals Inc. ("Coronet") to purchase Coronet Metals Peru S.A.C. ("Coronet Peru") thereby acquiring Coronet Peru's advanced-stage Yanamina Gold Property ("Yanamina" or the "Property"). Yanamina consists of 5 mining concessions located in the Department of Ancash, Peru.
Pursuant to the May 21, 2015 share purchase agreement between Wealth and Coronet, Wealth will acquire Yanamina through the acquisition of Coronet's Peruvian subsidiary, Coronet Peru, in consideration of Wealth issuing 1,000,000 shares to Coronet. Closing of the transaction is subject to TSX Venture Exchange acceptance for filing of the transaction on behalf of Wealth and Coronet (if required) and other usual closing conditions, and the closing date will be five business days following such conditions being met but not later than June 30, 2015. The Wealth shares will be issued to Coronet in two tranches, being 750,000 shares on the closing date, and 250,000 shares six months following.
In addition, Wealth will assume responsibility for Coronet Peru's outstanding debt in an amount of no more than USD 81,000, as well as Coronet's obligations with respect to certain potential future share issuances and payments to Migme Limited (formerly "Latin Gold Limited") ("LGL") and its subsidiary, Westmag Resources Limited ("WRL"), the former owner of Yanamina (including a 1% gross revenue royalty payable to WRL on all gold produced in excess of 200,000 ounces) relating to Coronet's purchase of Coronet Peru from LGL and WRL in 2011. Production from Yanamina is also subject to a 2% NSR in favour of Franco-Nevada Corporation, which can be purchased outright at any time prior to the commencement of construction for USD 200,000 cash.
Additional project details are included in the Company's previous news release, NR15-06 (dated April 1, 2015), which can be reviewed on the Company's website (www.wealthminerals.com). The Company has commissioned a new NI 43-101 technical report on Yanamina, which it anticipates will be completed prior to the closing date.
ABOUT WEALTH MINERALS LTD.
Wealth is an early stage mineral exploration company with listings on the TSX Venture and Frankfurt Stock Exchanges. The planned acquisition of the Yanamina Gold Project is consistent with Wealth's project acquisition policy requiring stable geopolitical project locations, low exploration risk, attractive grade, and potentially low capital requirements. While Wealth is not a development company, management insist on reasonable potential for near-term production. The Company intends to negotiate partnerships that will open up potential project developments routes.
On Behalf of the Board of Directors of
WEALTH MINERALS LTD.
"Hendrik van Alphen"
Hendrik van Alphen
President & CEO
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 press release, which has been prepared by management.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian and US securities legislation. All statements, other than statements of historical fact, included herein including, without limitation, statements regarding the proposed acquisition by the Company of Coronet Peru, and thereby the Yanamina Gold Project; the proposed closing of the purchase of Coronet Peru under the share purchase agreement; the completion of the acquisition of Coronet Peru and thereby Yanamina by the Company; the anticipated content, commencement, timing and cost of exploration programs, anticipated exploration program results, the discovery and delineation of mineral deposits/resources/reserves, and the anticipated business plans and timing of future activities of the Company, are forward-looking statements. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events.
The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward looking statements as a result of various factors, including, but not limited to, the state of the financial markets for the Company's equity securities, the state of the commodity markets generally, variations in the nature, quality and quantity of any mineral deposits that may be located, variations in the market price of any mineral products the Company may produce or plan to produce, the inability of the Company to meet the conditions precedent, including securing TSXV acceptance, to close the purchase of Coronet Peru and thereby Yanamina, or to close the transaction even if conditions are satisfied; the inability of the Company to obtain any necessary permits, consents or authorizations required, including TSXV acceptance, for its activities, the inability of the Company to produce minerals from its properties successfully or profitably, to continue its projected growth, to raise the necessary capital or to be fully able to implement its business strategies, and other risks and uncertainties disclosed in the Company's latest interim Management Discussion and Analysis and filed with certain securities commissions in Canada. All of the Company's Canadian public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials, including the technical reports filed with respect to the Company's mineral properties.
Caution Regarding Adjacent or Similar Mineral Properties
This news release contains information with respect to adjacent or similar mineral properties in respect of which the Company has no interest or rights to explore or mine. Readers are cautioned that the Company has no interest in or right to acquire any interest in any such properties, and that mineral deposits, and the results of any mining thereof, on adjacent or similar properties are not indicative of mineral deposits on the Company's properties or any potential exploitation thereof.
SOURCE Wealth Minerals Limited
For further information: Henk Van Alphen or Marla Ritchie, Phone: 604-331-0096 Ext. 3886 or 604-638-3886, E-mail: email@example.com