MERITUS SECURES FINANCING FOR GUTAIN DAVAA DEVELOPMENT
Vancouver, B.C.: Meritus Minerals Ltd (TSX-V---MER) is pleased to announce that it has executed an option agreement with two Mongolian companies that provides finance for the development of the high grade Gutain Davaa gold project in Mongolia.
The agreement requires the Mongolian partners to provide all finance to advance the Gutain Davaa project into production at their sole risk and to manage the project. Within twelve months from the date of first production they are required to subscribe US$4,000,000 to Gutain Davaa LLC, Meritus' wholly-owned subsidiary that holds the licence, for a 51% interest in that company. Included in the US$4,000,000 is a non-refundable deposit of US$300,000 to be paid in two tranches. The first tranche for US$150,000 has been paid and the second is due in early June. The residual US$3,700,000 to be paid after commencement of production shall be made from eighty percent of the net revenue from production after the deduction of allowable costs.
For each complete one million dollars subscribed the Mongolian partners will be issued 12.75% of the share capital in Gutain Davaa LLC. Should they not complete the subscription in the twelve month time frame Meritus may, at its option, terminate the agreement in which case the Mongolian partners will receive shares for each complete one million dollars subscribed.
Once the subscription is completed Meritus and the two partners will operate under a shareholders agreement with Gutain Davaa LLC being held 51% by our Mongolian partners and 49% by Meritus.
This agreement is very beneficial for Meritus shareholders as it provides for all finance into production without risk to Meritus and without dilution of Meritus' existing share structure. In addition we believe that the experience of our Mongolian partners in dealing with national and local authorities will be very helpful in allowing the Gutain Davaa project to advance as rapidly as possible to production. We look forward to co-operating with our new partners to achieve this objective.
For the purposes of this release the qualified person is Terence E. Bates MSc (Geol), the Company's Chief Executive Officer and President .All technical information in this release has been reviewed or compiled by MR Bates. Mr Bates is a Fellow of the Australian Institute of Mining and Metallurgy, and is a qualified person as defined by NI-43-101
Meritus Minerals Ltd (C.MER) is a mineral exploration company committed to building shareholder value through the acquisition of base and precious metal properties. For additional information, contact Richard Schnoor at 604.618.9327.
On Behalf of the Board of Directors.
Meritus Minerals Ltd
T.E. Bates - CEO and President
For further Information please email to: meritusml@fpt.vn
The TSX Venture Exchange has not reviewed and does not accept Responsibility for the adequacy or accuracy of this release. Forward-looking statements in this release are made pursuant to the 'safe harbor' provisions of the Private Securities Litigation Reform act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties.
This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. Such forward-looking statements or information, including but not limited to those with respect to the prices of copper, estimated future production, estimated costs of future production, permitting time lines, involve 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 such forward-looking statements or information. Such factors include, among others, the actual prices of copper, the factual results of current exploration, development and mining activities, changes in project parameters as plans continue to be evaluated, as well as those factors disclosed in the Company's documents filed from time to time with the securities regulators in the Provinces of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia, Prince Edward Island and Newfoundland and Labrador.
The agreement requires the Mongolian partners to provide all finance to advance the Gutain Davaa project into production at their sole risk and to manage the project. Within twelve months from the date of first production they are required to subscribe US$4,000,000 to Gutain Davaa LLC, Meritus' wholly-owned subsidiary that holds the licence, for a 51% interest in that company. Included in the US$4,000,000 is a non-refundable deposit of US$300,000 to be paid in two tranches. The first tranche for US$150,000 has been paid and the second is due in early June. The residual US$3,700,000 to be paid after commencement of production shall be made from eighty percent of the net revenue from production after the deduction of allowable costs.
For each complete one million dollars subscribed the Mongolian partners will be issued 12.75% of the share capital in Gutain Davaa LLC. Should they not complete the subscription in the twelve month time frame Meritus may, at its option, terminate the agreement in which case the Mongolian partners will receive shares for each complete one million dollars subscribed.
Once the subscription is completed Meritus and the two partners will operate under a shareholders agreement with Gutain Davaa LLC being held 51% by our Mongolian partners and 49% by Meritus.
This agreement is very beneficial for Meritus shareholders as it provides for all finance into production without risk to Meritus and without dilution of Meritus' existing share structure. In addition we believe that the experience of our Mongolian partners in dealing with national and local authorities will be very helpful in allowing the Gutain Davaa project to advance as rapidly as possible to production. We look forward to co-operating with our new partners to achieve this objective.
For the purposes of this release the qualified person is Terence E. Bates MSc (Geol), the Company's Chief Executive Officer and President .All technical information in this release has been reviewed or compiled by MR Bates. Mr Bates is a Fellow of the Australian Institute of Mining and Metallurgy, and is a qualified person as defined by NI-43-101
Meritus Minerals Ltd (C.MER) is a mineral exploration company committed to building shareholder value through the acquisition of base and precious metal properties. For additional information, contact Richard Schnoor at 604.618.9327.
On Behalf of the Board of Directors.
Meritus Minerals Ltd
T.E. Bates - CEO and President
For further Information please email to: meritusml@fpt.vn
The TSX Venture Exchange has not reviewed and does not accept Responsibility for the adequacy or accuracy of this release. Forward-looking statements in this release are made pursuant to the 'safe harbor' provisions of the Private Securities Litigation Reform act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties.
This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. Such forward-looking statements or information, including but not limited to those with respect to the prices of copper, estimated future production, estimated costs of future production, permitting time lines, involve 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 such forward-looking statements or information. Such factors include, among others, the actual prices of copper, the factual results of current exploration, development and mining activities, changes in project parameters as plans continue to be evaluated, as well as those factors disclosed in the Company's documents filed from time to time with the securities regulators in the Provinces of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia, Prince Edward Island and Newfoundland and Labrador.
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