Mustang Minerals Corp.: Asset Sale
16.05.2016 | FSCwire
Toronto - The Board of Directors of Mustang Minerals Corp. (TSXV:MUM) (“Mustang” or the “Company”) has entered into an asset sale agreement to sell the majority of its mill equipment in order to improve its working capital position. Mustang has received the first instalment of $652,000 of the total sale proceeds of $750,000. The closing of the remaining $98,000 will be completed June 27, 2016. Mustang will pay a ten per cent (10%) commission out of the sale proceeds to an arm’s length company who as agent facilitated the transaction under a services agreement. The sale includes three of the four mills owned by Mustang which are the highest value items in the mill inventory.Post closing of the asset sale the working capital position of the Company will be significantly improved from the Company’s working capital deficit of $1.2 million at December 31, 2015.
CRA Audit Update
The Company has launched a formal appeal of the determination of CRA that the there was a $1.37 million CEE short fall for the years 2010 – 2012. (see November 13, 2015 and February 11, 2016 press releases regarding the CRA Audit – the “Audit”). The Company took a provision of $1.2 million for the liability relating to the CRA audit for the period ended December 31, 2015 which includes $145,000 due from Mustang to CRA.
As a potential measure to deal with the liability arising from the indemnification of shareholders pursuant to the subscription agreements, the shareholders of the Company at the annual meeting held February 3, 2016 approved the issuance of common shares of the Company in order to satisfy obligations to subscribers of the flow-through share issuances of up to $600,000.
To find out more about Mustang Minerals Corp. (TSX-V: MUM)
visit our website at www.mustangminerals.com or:
Telephone: 416-955-4773
email: info@mustangminerals.co
We seek safe harbour.
This news release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of the Securities Act (Ontario) (together, “forward-looking statements”). Such forward-looking statements may include the Company’s plans for its mineral projects in Manitoba, the overall economic potential of its properties, the availability of adequate financing and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements expressed or implied by such forward-looking statements to be materially different. Such factors include, among others, risks and uncertainties relating to potential political risk, uncertainty of production and capital costs estimates and the potential for unexpected costs and expenses, physical risks inherent in mining operations, currency fluctuations, fluctuations in the price of nickel and other metals, completion of economic evaluations, changes in project parameters as plans continue to be refined, the inability or failure to obtain adequate financing on a timely basis, and other risks and uncertainties, including those described in the Company’s Management Discussion and Analysis for the most recent financial period and Material Change Reports filed with the Canadian Securities Administrators and available at www.sedar.com.
Neither the TSX Venture Exchange nor it Regulations 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.