TORONTO, Oct. 20, 2014 /CNW/ - Sulliden Mining Capital
Inc. (TSX: SMC) ("Sulliden" or the "Company") has entered into an
agreement with Aguia Resources Ltd ("Aguia") (ASX: AGR) to acquire
40,000,000 Aguia ordinary shares, representing a 15.7% interest in
Aguia. The Company has also acquired a 1% net smelter return
royalty ("NSR") on the Rio Grande project held by Aguia. The
aggregate purchase price for the shares and NSR royalty is AUD$2
million.
As part of the agreement, Sulliden will receive a board seat at
Aguia, and has the right to participate in any future equity
offerings by Aguia in order to maintain its proportionate equity
interest. Furthermore, Aguia has the option to buy-back the NSR
royalty for AUD$1 million at any time for up to three years after
the closing of the transaction.
Justin Reid, President and CEO of
Sulliden Mining Capital, commented, "We believe this investment is
a great opportunity for Sulliden. Our management has completed an
extensive due diligence review of Aguia and the Rio Grande project,
and we have great confidence in their team's ability to
successfully advance this asset. Our board seat will allow us to
take an active role in our investment by overseeing the execution
of the project; and if needed, we also intend to offer support to
Aguia's management as the project moves forward."
Sulliden is acquiring shares of Aguia for investment proposes.
Other than the purchased shares, Sulliden has no current intention
to increase the beneficial ownership of, or control or direction
over, additional securities of Aguia.
About Aguia Resources Ltd.
Aguia is an exploration and development stage phosphate and
potash company with a portfolio of projects located along the
eastern coast of Brazil. The
Company is primarily focused on the flagship Rio Grande phosphate
deposit, located in Rio Grande Do Sul, Brazil's southernmost state. This established
farming area currently imports 100% of its phosphate needs
(~500,000 tpa P2O5) as there are no existing
operating mines nearby. The Rio Grande project is a collection of
four new phosphate discoveries, one of which has JORC compliant
resource of 9.9 Mt at 5.03% P2O5 (Indicated
category) and 20.6 Mt at 3.94 % P2O5
(including a higher grade oxide zone from surface of 1.8Mt @ 10.9%
P2O5, with only 45% of the mapped strike
length drilled to date. The site has excellent infrastructure,
including roads, power, and railway links to the Rio Grande port
(one of only two ports in Brazil
with an acid terminal). For further information about Aguia,
including details of the mineral resource estimate, please visit
www.aguiaresources.com.au.
About Sulliden Mining Capital
Sulliden Mining Capital is a venture capital company focused on
acquiring and advancing brownfield, development-stage and early
production-stage mining projects in the Americas.
Sulliden Mining Capital Inc.
On behalf of the Board
"Justin Reid"
President & Chief Executive Officer
Cautionary statement regarding forward-looking
information
This press release contains "forward looking information"
within the meaning of applicable Canadian securities legislation.
Forward looking information includes without limitation, statements
regarding the acquisition of Aguia common shares and future
intention, the prospective mineralization of any of Aguia's
properties, and anticipated acquisitions. Generally, forward
looking information can be identified by the use of forward-looking
terminology such as "plans", "expects" or "does not expect", "is
expected", "budget", "scheduled", "estimates", "forecasts",
"intends", "anticipates" or "does not anticipate", or "believes",
or variations of such words and phrases or state that certain
actions, events or results "may", "could", "would", "might" or
"will be taken", "occur" or "be achieved". Forward-looking
information is subject to known and unknown risks, uncertainties
and other factors that may cause the actual results, level of
activity, performance or achievements of the Company to be
materially different from those expressed or implied by such
forward-looking information, including but not limited to: general
business, economic, competitive, geopolitical and social
uncertainties; the actual results of current exploration
activities; other risks of the mining industry and the risks
described in the annual information form of the Company. Although
the Company has attempted to identify important factors that could
cause actual results to differ materially from those contained in
forward-looking information, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can
be no assurance that such information will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward looking information. The Company
does not undertake to update any forward-looking information,
except in accordance with applicable securities laws.
SOURCE Sulliden Mining Capital