Silver Predator Revises Springer Mining Lease and Option to Purchase Agreement
Reno, Nevada (FSCwire) - Silver Predator Corp. (TSX.V:SPD) (the “Company”) announces that on January 17, 2015 it has executed a renegotiated Mining Lease and Option to Purchase Agreement (the “Agreement”) with Geological Services Inc. and Robert W. Schafer (the “Vendors”) on nine unpatented lode claims at its Springer Tungsten Mine and Mill property located in Pershing County, Nevada. This renegotiated agreement provides for a reduced royalty rate which will help the economics of the project.
The Agreement
The Mining Lease Agreement, which is subject to TSXV approval, requires advance royalty payments to the Vendors totaling US $500,000 over seven years, with annual payments of US $100,000 commencing on the eighth anniversary as well as share payments totaling 300,000 shares over the first four years. All payments are to be credited against future royalty obligations. Springer may purchase the Leased property for US $2,750,000, subject to a 1.5% NSR payable on all minerals, if paid prior to the 3rd anniversary. If paid after the 3rd anniversary but on or before the 5th anniversary, the payment will escalate to US $4,000,000. If the purchase Option is not exercised, the vendors will retain a sliding-scale net smelter royalty (“NSR”) of 2.0% to 4.0% on tungsten and a 2% NSR on all other minerals. The previous agreement provided for a sliding scale 3.0% - 5.0% retained NSR.
Silver Predator Corp.
Silver Predator’s corporate mandate is to advance its Springer Tungsten Mine and Mill Complex in Nevada to production through a joint venture arrangement. A PEA completed on current resources of 355,000 Indicated tons at an average grade of 0.537% containing 190,635 STU's of WO3 and 1,933,600 Inferred tons at an average grade of 0.493% containing 952,326 STU's of WO3 indicates an IRR of 47% after tax with an estimated capex of 29.8 million dollars(1). The Springer facility was originally constructed and operated by General Electric Corp. in the late 1970’s and early 1980’s when the project was put on care and maintenance due to low tungsten prices. The mill was modernized by Golden Predator Corp. in 2007-2008. The facility could be production capable within 12 months of a capital commitment. Approximately $100 million dollars has cumulatively been invested by all companies in the construction and modernization of the mine and mill.
The Company also holds the Taylor silver-gold project in Nevada. The Taylor project hosts a current resource estimate(2), is open to expansion, and is located in a district that has identified the potential for discovery of additional silver and gold deposits.
Mr. Mark C. Shutty, CPG, a Qualified Person as defined by National Instrument 43-101 and a consultant for the Company, has reviewed, verified and approved disclosure of the technical information contained in this news release.
For additional information: William M. Sheriff, Chairman
or
Clifford D. Nelson Jr., CEO
(208) 635 5415
info@silverpredator.com
www@silverpredator.com
1) National Instrument 43-101 Technical Report; Preliminary Economic Assessment of the Springer Tungsten Mine Pershing County, Nevada, by Associated Geosciences Ltd. dated December 31, 2013 (and effective August 20, 2012) filed on SEDAR. The preliminary economic assessment is preliminary in nature, it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment will be realized;
2) National Instrument 43-101 Technical Report; NI 43-101 of the Taylor Silver Project, White Pine County, Nevada, USA by Thomas H. Chadwick, Dean D. Turner, and Patrick J. Hollenbeck dated March 18, 2013 filed on SEDAR.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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 Silver Predators’ 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, Silver Predator assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.
To view this press release as a PDF file, click onto the following link:
public://news_release_pdf/SilverPredatorFeb92015.pdf
Source: Silver Predator Corp. (TSX Venture:SPD) www.silverpredator.com
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