VANCOUVER, BC / ACCESSWIRE / Sultan Minerals Inc. (TSX-V: SUL) ("Sultan" or the "Company") is pleased to announce that the Company's option agreement (the "Agreement") dated November 8, 2013 (as amended) with Margaux Resources Ltd. (TSX-V: MRL; "Margaux") with respect to the Jersey-Emerald Tungsten-Zinc Property (the "Property"), located in southeastern B.C has been approved by the TSX Venture Exchange. Margaux has filed an updated NI 43-101 compliant technical report on the Property which is available on SEDAR at www.sedar.com.
Under the terms of the Agreement, Margaux will have the exclusive option to acquire a 100% working interest in the Property (subject to the net smelter returns royalties ("NSRs") described below) by:
1) making payments to Sultan of an aggregate $4.0 million, paid in several installments on or before November 8, 2016 (the "Agreement Date") as follows:
a) initial deposits of $200,000 paid previously;
b) release of a cash payment of $300,000, previously held in trust pending receipt of TSX Venture Exchange approval for the transaction;
c) on or before the first anniversary of the Agreement Date, a cash payment of $750,000;
d) on or before the second anniversary of the Agreement Date, a cash payment of $1,250,000; and
e) on or before the third anniversary of the Agreement Date, a cash payment of $1,500,000; and
2) incurring not less than $2,000,000 in expenditures on the Property on or before the third anniversary of the Agreement Date.
Margaux will use its best efforts to incur expenditures of $6,000,000 on the Property on or prior to the third anniversary of the Agreement Date. Sultan retains a 1.5% NSR on the Property. For a period of 60 days following the earlier of (a) the commencement of commercial production on the Property or (b) the completion of a feasibility study on the Property, Margaux may purchase 50% of the NSR (being a 0.75% net smelter returns royalty) from Sultan for a payment to Sultan of $5.0 million. The Property is also subject to several additional NSRs, ranging from 1-3% on various areas of the Property (please see November 11, 2013 News Release).
For further information on the Company's projects, visit www.sultanminerals.com.
Arthur G. Troup, P.Eng., Geological
President and CEO
For further information please contact:
Marc Lee, Investor and Corporate Communications
Tel: (604) 628-0519 Fax: (604) 628-0446
Email: [email protected] or [email protected]
This release was prepared by Sultan's management. Neither TSX Venture Exchange nor its Regulation Services Provider (as the term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release includes certain statements that may be deemed "forward-looking statements." All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that Sultan expects are forward-looking statements. Although Sultan believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements. For more information on Sultan, investors should review Sultan's filings that are available at www.sedar.com or Sultan's website at www.sultanminerals.com.
SOURCE: Sultan Minerals Inc.