Agave Silver Corp. Signs Letter Agreement with Hastings Highlands Resources Limited for Option on Nickel-Copper Property
Vancouver, BC / TheNewswire / February 19, 2015-Agave Silver Corp. (TSX-V: AGV)("Agave" or the "Company") is pleased to announce that it has signed a letter agreement (the "Letter") with Hastings Highland Resources Limited ("Hastings") for an exclusive option to earn a 90 percent interest in Hastings' Limerick Township nickel-copper property located in Ontario, Canada (the "Property").
The acquisition of the Hastings option brings the Company a Canadian nickel-copper property with many historical targets for future evaluation. The Company plans to bring historical data into a fully-compliant NI 43-101 format allowing for further work programs to develop a resource calculation on this privately-owned property in a proven mining area.
Agave and Hastings intend on negotiating and entering into a definitive agreement (the "Agreement") with respect to the option on the Property, subject to the approval of the TSX Venture Exchange. If the Agreement is not executed by both Agave and Hastings by March 31, 2015, or if the approval of the TSX Venture Exchange is not granted, the rights of Agave to the Property and under the Letter fully lapse.
The terms of the Letter set forth the terms to be included in the Agreement as follows:
STAGE 1
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| | | |
|Work in | |
|--------------------------------------------------------------------------------------------------|
| |Cash | |# of
|the Ground | |
|--------------------------------------------------------------------------------------------------|
| |Option | |Agave
|including | |
|--------------------------------------------------------------------------------------------------|
| |Payment | |Common Shares
(1)|Property Costs (2) | |
|--------------------------------------------------------------------------------------------------|
|Upon TSX | $ | |
| $ | |
|approval | 10,000 | |
| | |
| | | | 1,400,000
| - | |
|--------------------------------------------------------------------------------------------------|
|End of Year 1| $ | |
| $ | |
| | 25,000 | |
| 295,000 | |
| | | | 200,000
| | |
|--------------------------------------------------------------------------------------------------|
|End of Year 2| $ | |
| $ | |
| | 75,000 | |
| 545,000 | |
| | | | 350,000
| | |
|--------------------------------------------------------------------------------------------------|
|End of Year 3| $ | |
|Amount Remaining | |
| | 300,000 | |
| | |
| | | | 750,000
| | |
|--------------------------------------------------------------------------------------------------|
| | | |
|to complete the | |
|--------------------------------------------------------------------------------------------------|
| | | |
|Scoping Study | |
|--------------------------------------------------------------------------------------------------|
| | | |
|of the North Zone | |
|--------------------------------------------------------------------------------------------------|
|(1) shares subject to 4 month hold period
| | |
|--------------------------------------------------------------------------------------------------|
|(2) Agave also assumes the property costs of Hastings which
| |
|--------------------------------------------------------------------------------------------------|
| are included in the "Work in Ground" amount above
| | |
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The 51% would be earned on completion of the above Scoping Study within three years of signing the option. No retained interest is earned if the scoping study is not completed by the due date.
STAGE 2
A further 25% can be earned by financing a bankable feasibility study within two years of the scoping study and making further annual payments of $500,000 commencing one year after completion of the scoping study. These payments cease upon the mine beginning commercial production.
STAGE 3
Bringing the mine into commercial production and making a further payment of $10,000,000 in 5 equal annual instalments commencing September 1st, 2022 will increase Agave's holding to 90% of the Property, with Hastings retaining a 10 per cent carried interest and Agave assuming responsibility for NSR's attached to the Property. At any time after a greater than 76% interest is earned, Agave has the right to buy out Hastings' remaining interest in the Property at mutually acceptable terms.
Dr. Derek McBride P. Eng., a director of Agave, is a principal of Hastings.
Agave is a Canadian mineral exploration company. To learn more about Agave Silver please click here http://www.agavesilver.com
On behalf of the board of Agave Silver Corp.
Ronald M. Lang
President & CEO
For Investor Relations please call: Rob Paul at 604-817-6010 or Ron Lang at 604-558-3908.
Tel: (604) 687-4622 Fax: (604) 687-4212 Toll Free: 1-888-267-1400
Email: info@agavesilver.com
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 release.
Forward-Looking Information
This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking information") within the meaning of applicable securities laws. Forward-looking information is generally identifiable by use of the words "believes," "may," "plans," "will," "anticipates," "intends," "could", "estimates", "expects", "forecasts", "projects" and similar expressions, and the negative of such expressions. Forward-looking information in this news release include statements about the Limerick Township nickel-copper property and plans to bring historical data thereon into a fully compliant NI 43-101 format allowing for further work programs to develop a resource calculation. In connection with the forward-looking information contained in this news release, the Company has made numerous assumptions, regarding, among other things, the geological, metallurgical, engineering, financial and economic advice that the Company has received is reliable and is based upon practices and methodologies which are consistent with industry standards. While the Company considers these assumptions to be reasonable, these assumptions are inherently subject to significant uncertainties and contingencies. In addition, there are known and unknown risk factors which could cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained herein. Known risk factors include, among others: the Limerick Township nickel-copper property may not contain any commercially viable mineralization of benefit to the Company; the Company may not execute a definitive agreement with Hastings for the Limerick Township nickel-copper property; a 43-101 compliant resource report may not be completed for the Limerick Township nickel-copper property; TSX Venture Exchange may not approve the entering into of the definitive agreement for the Limerick Township nickel-copper property.
A more complete discussion of the risks and uncertainties facing the Company is disclosed in the Company's continuous disclosure filings with Canadian securities regulatory authorities at www.sedar.com. All forward-looking information herein is qualified in its entirety by this cautionary statement, and the Company disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking.
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