Vancouver, British Columbia / ACCESSWIRE / May 26, 2014 / Aston Bay Holdings Ltd. (TSX-V: BAY) ("Aston Bay" or the "Company") is pleased to announce that it has entered into an agreement (the "Exclusivity Agreement") for a period of exclusivity (the "Exclusivity Period") with a major mining company with a public market capitalization in excess of US$10 billion (the "Major"). The Exclusivity Period will last until the execution of an earn-in agreement and/or a Memorandum of Understanding ("MOU") or June 30, 2014, whichever is earlier. The Exclusivity Agreement is an initial step towards the proposed MOU to form a joint venture on the Storm Copper and Seal Zinc projects ("Storm").
Under the terms of the Exclusivity Agreement, Aston Bay will provide to the Major all information relevant to the Storm project, and arrange for a site visit and tour of Storm. Aston Bay also agrees not to invite or facilitate any discussions with third parties with respect to Storm and Aston Bay's assets and shares in general, with certain exceptions. In consideration of Aston Bay entering into the Exclusivity Agreement, the Major will pay to the Company a fee of $50,000 for the Exclusivity Agreement, an amount that will be counted towards the Major's exploration expenditures should an MOU be completed. The fee is not refundable to the Major in the event an MOU is not completed.
"Aston Bay has been actively seeking a partner to advance the Storm project, and we are excited to have attracted the interest of a major mining company with a track record of successfully developing and operating mines," stated Benjamin Cox, President and CEO of Aston Bay. "Our discussions with the Major have advanced to the stage that both parties felt it was appropriate to enter into an Exclusivity Agreement in order to negotiate and document the final terms of the MOU."
The complete terms and conditions of the potential MOU are still being negotiated, and there is no assurance that the MOU will be successfully concluded. In addition, the final terms and conditions of the MOU will be subject to approval of the Boards of Directors of Aston Bay and the Major and the applicable regulatory authorities.
"Aston Bay's ability to attract the interest of a major mining company reflects the technical merit of the Storm project," said Bruce Counts, Aston Bay's COO. "We are eager to conclude the MOU and begin the task of advancing the property in partnership with the Major."
About Aston Bay Holdings
Aston Bay Holdings Ltd. (TSX-V: BAY) is a publicly traded mineral exploration company focused on the 345,033-acre Storm Property located on northwest Somerset Island, Nunavut. The property hosts the Storm Copper and Seal Zinc prospects. Aston Bay holds the right to earn or buy up to a 100% undivided interest in the Storm Property from Commander Resources Ltd. (TSX-V: CMD).
On behalf of the Board of Directors,
Benjamin Cox, Chief Executive Officer
Telephone: (360) 262-6969
For further information about Aston Bay Holdings Ltd or this news release, please visit our website at www.astonbayholdings.com.
Neither the TSX Venture Exchange Inc. 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.
This news release contains certain statements that may be deemed "forward-looking statements". Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company 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 may differ materially from those in forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by law, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.
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