Bearing Announces Agreement with Golden Predator
VANCOUVER, BC / ACCESSWIRE / January 3, 2017 / Bearing Resources Ltd. (TSXV: BRZ) (the "Company" or "Bearing") announces that it has entered into a property purchase agreement (the "Purchase Agreement") with Golden Predator Mining Corp. (TSXV: GPY) (OTCQX: NTGSF) ("Golden Predator") pursuant to which Golden Predator has agreed to purchase all of the Company's interest in certain mineral claims (the "Claims") located in the Upper Hyland River area in the southeast region of the Yukon Territory (the "Transaction").
As partial consideration for the Claims, Golden Predator will pay to the Company an aggregate cash payment of $275,000, payable over 48 months from the execution date of the Purchase Agreement (the "Execution Date"). In addition, Golden Predator will issue 35,000 common shares to the Company on the Execution Date, and a further 50,000 common shares on the date that is 8 months from the Execution Date. Golden Predator has also agreed to issue up to $600,000 worth of common shares to the Company on the dates that are 20 months, 32 months, and 48 months from the Execution Date, having a deemed price per common share equal to the greater of the Minimum Price and the 21-day VWAP (as such terms are defined in the Purchase Agreement).
Under the terms of the Purchase Agreement, Golden Predator will also grant to the Company a 2% net smelter return royalty on certain claims and a 1% net smelter returns royalty on the remaining claims (the "NSR"). Golden Predator has the right to re-purchase 50% of the NSR for the purchase price of $1,000,000 at any time.
Completion of the Transaction is conditional on the Company's completion of its previously announced transaction with Li3 Energy Inc. (the "Li3 Transaction") and remains subject to the approval of the TSX Venture Exchange.
Jeremy Poirier, President and Chief Executive Officer of the Company commented: "We are very pleased to have entered into this agreement with Golden Predator and believe this transaction is an excellent opportunity for the Company to take advantage of a strong gold market moving forward. We look forward to becoming a shareholder of Golden Predator."
ON BEHALF OF THE BOARD
Signed "Jeremy Poirier"
Jeremy Poirier, President and CEO
FOR FURTHER INFORMATION PLEASE CONTACT:
Jeremy Poirier - President and CEO Bearing Resources - Telephone: 604-722-9842
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.
About Bearing
Bearing is an exploration and development company. On December 9, 2016, it entered into a Binding LOI agreement (the "Binding LOI") with Li3 Energy Inc. to acquire the advanced advanced-stage Maricunga project located in Chile (the "Maricunga Project"), which represents one of the highest-grade development opportunities in the Americas. Assuming completion of the transactions contemplated by the Binding LOI, Bearing will have an undivided 17.7% interest in the project with all expenditures through to the delivery of a Definitive Feasibility Study (DFS) fully-funded by its joint-venture partners. The Maricunga Project has had in excess of US$25 million of exploration to date.
Cautionary Statements Regarding Forward Looking Information
This news release includes certain "forward-looking information" and "forward-looking statements" (collectively "forward-looking statements") within the meaning of applicable Canadian and United States securities legislation including the United States Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, included herein, without limitation, statements relating to the future operating or financial performance of the Company, are forward-looking statements.
Forward-looking statements are frequently, but not always, identified by words such as "expects", "anticipates", "believes", "intends", "estimates", "potential", "possible", and similar expressions, or statements that events, conditions, or results "will", "may", "could", or "should" occur or be achieved. Forward-looking statements in this news release relate to, among other things, completion of the Transaction and completion of the Li3 Transaction. Actual future results may differ materially. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements reflect the beliefs, opinions and projections on the date the statements are made and are based upon a number of assumptions and estimates that, while considered reasonable by the respective parties, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors, both known and unknown, could cause actual results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements and the parties have made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation, satisfaction of the various conditions precedent to completion of the Transaction and Li3 Transaction. Readers should not place undue reliance on the forward-looking statements and information contained in this news release concerning these times. Except as required by law, Bearing does not assume any obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.
SOURCE: Bearing Resources Ltd.