Silver Predator Signs Definitive Agreements
CNSX: SPD
VANCOUVER, Dec. 13 /PRNewswire-FirstCall/ - Silver Predator Corp. (CNSX: SPD) ("Silver Predator" or the "Company") is pleased to announce that it has signed definitive agreements with Golden Predator Corp. (TSX:GPD "Golden Predator"), Rockhaven Resources Ltd. (TSX-V:RK "Rockhaven Resources Ltd.") and Strategic Metals Ltd. (TSX-V:SMD "Strategic Metals") to acquire 20 predominantly silver exploration and development properties located in Yukon, Nevada, Mexico and British Columbia (the "Transactions").
"Completing the structural aspects of the transactions represents a significant milestone in the Company's establishment as one of the few silver focused entities in the market", said William M. Sheriff, Chairman. "With Plata and Taylor as our flagship properties, 18 additional advanced stage and development properties in the portfolio, primarily located in Yukon and Nevada, highly prospective and stable jurisdictions and leveraged by a proven management team, we are looking forward to creating substantial increased shareholder value."
Transactions with Golden Predator
Silver Predator has agreed to acquire significant silver projects in Nevada and Mexico from Golden Predator and its subsidiaries:
- Golden Predator has agreed to grant Silver Predator an option to
acquire a 100% interest in 261 unpatented mining claims and 4 patented
mining claims located in White Pine County, Nevada, known as the
Taylor Property, subject to certain royalty interests further
described below. The Taylor Property includes a NI 43-101 compliant
resource of 14.9 MM oz Ag from measured and indicated mineral
resources of 6,433,000 tons grading 2.31 oz/t Ag and 1.9 MM oz Ag from
an inferred mineral resource of 757,000 tons grading 2.54 oz/t Ag
(using a 1.2 oz/t Ag cutoff grade: Hester, 2009). The option is
structured as sales of the shares of Fury Explorations Ltd. ("Fury
Canada"), which in turn owns all of the shares of Anglo Nevada Metals
Corporation ("Anglo Nevada"). Anglo Nevada owns the Taylor Property.
As consideration for this option, Silver Predator will issue to Golden
Predator 1,000,000 of its common shares ("Common Shares"). To exercise
this option, the Company must issue, in stages, a minimum of
11,000,000 additional Common Shares having a minimum aggregate value
of $7,254,000 (all dollar amounts are in Canadian Currency) but
subject to a maximum of 17,463,333 shares. On
exercise of this option Silver Predator will grant to Golden Predator
a 2% net smelter royalty ("NSR") on all precious metals and 1% NSR on
all other metals, except for metals extracted from claims subject to
pre-existing royalties on which Golden Predator will receive a 1% NSR
on precious metals and 0.5% NSR on all other metals.
- Silver Predator has also agreed to acquire, through Anglo Nevada, a
10 year right to earn a 50% interest in the Taylor Mill Facility from
Taylor Mining Corp. ("Taylor Mining"), a wholly-owned subsidiary of
Golden Predator. The Taylor Mill Facility comprises five mill site
claims and the 1,320 ton per day mill complex located thereon. The
mill complex includes primary, secondary and tertiary crushers, eight
ball mills, a leaching and counter-current decant thickening circuit,
Merrill Crowe equipment, a flotation circuit, a maintenance shop, an
assay office, an electrical substation and a mine office. To earn its
50% interest Anglo Nevada must incur rehabilitation expenditures,
invest operating capital or pay to Taylor Mining (or some combination
of the foregoing) in an amount equal to the fair market value of the
Taylor Mill Facility (or, to the extent that cash payments are made to
Taylor Mining, in an amount equal to 50% of the fair market value). On
Anglo Nevada acquiring a 50% interest in the Taylor Mill Facility,
Anglo Nevada and Taylor Mining will enter into a joint venture
agreement to operate the Taylor Mill facility.
- Silver Predator has also agreed to acquire, through its wholly-owned
subsidiary Silver Predator US Holding Corp. ("SPUS"), the Treasure
Hill and Silver Bow Properties located in White Pine & Nye Counties,
Nevada from Golden Predator US Mines Inc. (a wholly-owned subsidiary
of Golden Predator) ("GPUS") and, through the acquisition of Fury
Exploration (Mexico) S. de R.L. de C.V. ("Fury Mexico"), the Magistral
property located in Jalisco State, Mexico, for an aggregate of
4,000,000 Common Shares. The Treasure Hill Property consists of
232 patented and unpatented mining claims which are 100% owned by
Golden Predator, and which are subject to existing NSR royalties of
between 2% and 3%. GPUS will retain a 1% net profits interest ("NPI")
on SPUS' interest in the Treasure Hill Property. The Silver Bow
Property consists of lease rights in 73 unpatented lode mining claims.
The underlying owners of the Silver Bow Property retain a 3% NSR. GPUS
will retain a 1% NPI on SPUS' interest in the Silver Bow Property,
unless SPUS exercise its right to purchase the existing NSR, in which
case GPUS will be granted a 1% NSR on all precious metals and 0.5% NSR
on all other metals. Fury Mexico owns 100% of the Magistral Property,
with Southern Silver Exploration Corp. (TSX-V:SSV "Southern") holding
an option to acquire a 65% interest in the Magistral Property.
Provided that Southern exercises its option, Golden Predator will
retain a 1% NPI on Fury Mexico's interest in the Magistral Property.
In the event that Southern drops its option, Fury Mexico will grant
Golden Predator a 2% NSR on all precious metals and 1% NSR on all
other metals on the Magistral Property.
Transactions with Rockhaven
Silver Predator has agreed to acquire significant silver projects in Yukon from Rockhaven:
- Rockhaven has agreed to grant the Company's wholly-owned subsidiary
Silver Predator Canada Corp. ("SPCC") an option to acquire a 100%
interest in 280 quartz mining claims located in the Mayo Mining
District, Yukon and known as the Plata Project. A total of 35
silver+lead+/-gold-bearing vein and bulk tonnage zones have been
discovered to date on the Plata Project, and many prospective
geochemical and geophysical anomalies are undrilled. In the 1980's
production at Plata totaled 290,000 oz Ag from high-grade vein
material extracted from shallow open cuts. Numerous similarities exist
between the silver-lead veins discovered at Plata and those found in
the Keno Hill Silver District, Canada's second largest historic
primary silver camp, located 140 km to the west. As consideration for
this option, SPCC will deliver to Rockhaven 500,000 Common Shares. To
exercise this option, SPCC must deliver, in stages, a minimum of
5,500,000 additional Common Shares having a minimum aggregate value of
$3,627,000 but subject to a maximum of 8,731,667 shares. On exercise
of this option SPCC will grant to Rockhaven a 2% NSR on all precious
metals and 1% NSR on all other metals.
- Silver Predator has also agreed to acquire, through SPCC, a 100%
interest in four separate prospective mineral properties represented
by 224 quartz mining claims located in the Watson Lake and Mayo Mining
Districts, Yukon, including the Groundhog, Cyr and Grayling carbonate
replacement deposit targets and the Zap Project located 16 km
northwest of ATAC Resources' (TSX-V:ATC) Rau Project. As
consideration, SPCC will deliver to Rockhaven 2,000,000 Common Shares.
Rockhaven will retain a 2% NSR on all precious metals and 1% NSR on
all other metals.
Transactions with Strategic
Silver Predator has agreed to acquire significant silver projects in Yukon from Strategic:
- Strategic has agreed to grant SPCC an option to acquire a 100%
interest in 256 quartz mining claims located in the Rancheria Silver-
Lead-Zinc District which straddles the British Columbia/Yukon border
known as the Quarterback, Blue Heaven and Ranch Properties. As
consideration for this option, SPCC will deliver to Strategic 500,000
Common Shares. To exercise this option, SPCC must deliver, in stages,
a minimum of 5,500,000 additional Common Shares having a minimum
aggregate value of $3,627,000 but subject to a maximum of 8,731,667
shares. On exercise of this option SPCC will grant to Strategic a 2%
NSR on all precious metals and 1% NSR on all other metals.
- Silver Predator has also agreed to acquire, through SPCC, a 100%
interest in eight separate prospective mineral properties represented
by 145 quartz mining claims located in the Watson Lake and Mayo Mining
Districts, Yukon and the Liard Mining Division, British Columbia,
including the Touchdown, Pigskin, and Shar Properties. As
consideration, SPCC will deliver to Strategic 2,000,000 Common Shares.
Strategic will retain a 2% NSR on all precious metals and 1% NSR on
all other metals.
Readers are referred to the Company's news release dated August 3, 2010 for additional details on the above Properties.
Closing
The Transactions are required to close on or before February 28, 2011 unless otherwise extended and are subject to several conditions precedent, including receiving conditional approval for the listing of the Common Shares on the Toronto Stock Exchange.
Material Properties
Silver Predator's management has determined that the Taylor and Plata Properties will be the Company's material properties on closing of the Transactions. The Company will be filing current technical reports on these properties in the coming weeks.
Board of Directors
On closing of the Transactions Douglas Eaton and Robert Carne will be appointed to the board of directors of the Company, joining William M. Sheriff, Chairman, John W. Legg, and Louis A. Lepry, Jr.
The technical content of this news release has been reviewed and approved by Corwin (Cor) Coe, A.Sc.T., B.Sc., P.Geo., the Company's President and Chief Executive Officer and a Qualified Person as defined by National Instrument 43-101.
About Silver Predator Corp.
Silver Predator Corp.'s corporate mandate is to explore and develop commercially viable silver resources in the leading silver districts of Yukon, Canada and Nevada, USA. Working within stable geopolitical jurisdictions, Silver Predator will focus on silver-dominant bulk tonnage opportunities. Proven management plus access to unparalleled geological talent in the Yukon and extensive experience in Nevada provide the ability to maximize shareholder value from the Company's quality asset base.
The CNSX has in no way passed on the merits of these proposed transactions and has neither approved nor disapproved the contents of this news release.
Cautionary Statements
There can be no assurance that the Transactions will be completed as proposed, or on a specific date, or at all. There can be no assurances that the market price of the common shares of the Company will increase as a result of the Transactions. The marketability and trading liquidity of the common shares of the Company may not improve as a result of the Transactions.
Forward-Looking Statements
This news release contains certain forward-looking information and statements with the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "confident", "might", "proposed" and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the foregoing, this news release contains forward-looking information and statements pertaining to the proposed transactions.
The forward-looking information and statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated and described in the forward-looking statements. Such information and statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information or statements. These include, but are not limited to, risks associated with fluctuations in the market price of the Company's common shares, commodity price and exchange rate fluctuations and uncertainties and risks relating to the outcome of the Transactions on the market price, marketability and liquidity of the Company's common shares. The forgoing list of assumptions, risks and uncertainties is not exhaustive. The forward-looking information and statements contained in this news release speak only as of the date of this news release, and the Company assumes no obligation to update publicly or revise any forward-looking information or statements, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
SOURCE Silver Predator Corp.
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