|By Marketwired .||
|July 29, 2014 06:30 AM EDT||
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 07/29/14 -- Excelsior Mining Corp. ("Excelsior" or the "Company") (TSX VENTURE:MIN) is pleased to announce that Callinan Royalties Corp. ("Callinan") has exercised the first royalty option under the Share Purchase and Royalty Option Agreement dated July 19, 2013 (the "Agreement") between the Company and Callinan. As a result of the exercise of the first royalty option Callinan has paid the Company $3.0 million and in return received a 0.5% gross revenue royalty ("GRR") on the Gunnison Project. Combined with the initial GRR that Callinan acquired in July 2013, Callinan now holds a 1.0% GRR on the Gunnison Project.
Commenting on the transaction, Chief Executive Officer Stephen Twyerould stated, "Callinan's exercise of this royalty option is a further endorsement of the quality of the Gunnison Project and our management team. We look forward to moving our low-cost in-situ copper project forward with the support of Callinan Royalties."
With the exercise of the first royalty option, under the terms of the Agreement, Callinan has the remaining option to invest up to an additional $16.0 million into Excelsior in exchange for a further 2.0% GRR on the Gunnison Project consisting of Development Milestones (1.0% GRR) and a Construction Milestone (1.0% GRR). The remaining Development Milestones include: (1) completion of hydrology and metallurgy models to feasibility study level and (2) successful administrative review of the Aquifer Protection Permit and the Underground Injection Control and Aquifer Exemption Permit. Upon the completion of each milestone, Callinan will have the option to purchase an additional 0.5% GRR for $3.0 million each.
The Construction Milestone gives Callinan the right to buy a 1.0% GRR for $10.0 million following completion of the feasibility study, receipt of all required permits and Excelsior securing a firm commitment for 50% of the required capital required for mine construction. One quarter (0.25%) of the construction option will vest with each $3.0 million paid by Callinan to Excelsior pursuant to the initial investment or upon the exercise of any of the royalty options. Should all the royalty options be exercised, Callinan would acquire a 3% GRR on the Gunnison project for total proceeds of $21.0 million.
The exercise price of the construction option may be adjusted if the feasibility study recommends the construction of a plant with capacity lower than 80 million pounds of copper per year based on an agreed upon schedule.
Excelsior is a mineral exploration and development company that is advancing the Gunnison Copper Project. The Excelsior management team consists of experienced professionals with proven track records of advancing mining projects into production. Further information about the Gunnison Copper Project can be found in the technical report filed on SEDAR at www.sedar.com entitled: "Gunnison Copper Project, NI 43-101 Technical Report, Prefeasibility Study" dated February 14, 2014.
For more information on Excelsior, please visit our website at www.excelsiormining.com.
ON BEHALF OF THE EXCELSIOR BOARD
Mark J Morabito, Executive Chairman
Cautionary Note Regarding Forward-Looking Information
This news release contains "forward-looking information" concerning (i) the exercise of future royalty options; and (ii) the advancement of the Gunnison Project.
Such forward-looking information can be identified by the use of word "will". Forward-looking information contained in this news release is based on certain factors and assumptions regarding, among other things, the estimation of mineral resources and mineral reserves, the realization of resource and reserve estimates, copper and other metal prices, the timing and amount of future exploration and development expenditures, the estimation of initial and sustaining capital requirements, the estimation of labour and operating costs, the availability of necessary financing and materials to continue to explore and develop the Gunnison Project in the short and long-term, the progress of exploration and development activities, the receipt of necessary regulatory approvals, the completion of the permitting process, the estimation of insurance coverage, and assumptions with respect to currency fluctuations, environmental risks, title disputes or claims, and other similar matters. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.
Forward looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include risks inherent in the exploration and development of mineral deposits, including risks relating to changes in project parameters as plans continue to be redefined including the possibility that mining operations may not commence at the Gunnison Project, risks relating to variations in mineral resources and reserves, grade or recovery rates resulting from current exploration and development activities, risks relating to the ability to access infrastructure, risks relating to changes in copper and other commodity prices and the worldwide demand for and supply of copper and related products, risks related to increased competition in the market for copper and related products and in the mining industry generally, risks related to current global financial conditions, uncertainties inherent in the estimation of mineral resources, access and supply risks, reliance on key personnel, operational risks inherent in the conduct of mining activities, including the risk of accidents, labour disputes, increases in capital and operating costs and the risk of delays or increased costs that might be encountered during the development process, regulatory risks, including risks relating to the acquisition of the necessary licenses and permits, financing, capitalization and liquidity risks, including the risk that the financing necessary to fund the exploration and development activities at the Gunnison Project may not be available on satisfactory terms, or at all, risks related to disputes concerning property titles and interest, environmental risks and the additional risks identified in the "Risk Factors" section of the Company's reports and filings with applicable Canadian securities regulators.
Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking information is made as of the date of this news release. Except as required by applicable securities laws, the Company does not undertake any obligation to publicly update or revise any forward-looking information.
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, and no securities regulatory authority has either approved or disapproved of the contents of this release.
Dec. 11, 2016 12:00 AM EST Reads: 2,395
Dec. 11, 2016 12:00 AM EST Reads: 913
Dec. 11, 2016 12:00 AM EST Reads: 1,114
Dec. 10, 2016 11:45 PM EST Reads: 1,796
Dec. 10, 2016 11:15 PM EST Reads: 1,219
Dec. 10, 2016 10:15 PM EST Reads: 2,073
Dec. 10, 2016 09:15 PM EST Reads: 1,355
Dec. 10, 2016 07:30 PM EST Reads: 1,822
Dec. 10, 2016 07:00 PM EST Reads: 4,159
Dec. 10, 2016 06:30 PM EST Reads: 1,551
Dec. 10, 2016 06:30 PM EST Reads: 1,037
Dec. 10, 2016 06:30 PM EST Reads: 1,973
Dec. 10, 2016 06:15 PM EST Reads: 1,099
Dec. 10, 2016 05:30 PM EST Reads: 1,012
Dec. 10, 2016 05:15 PM EST Reads: 1,428