Southern Arc Finalizes Sale of Taliwang Project
February 28 2014 - 6:30AM
Marketwired Canada
Southern Arc Minerals (TSX VENTURE:SA)(OTCQX:SOACF) ("Southern Arc") today
announced that the Company has finalized an agreement for the sale of its
interest in the Taliwang project. Pursuant to the terms of the agreement,
Southern Arc's wholly-owned subsidiary Indotan Sumbawa Pte. Ltd., which holds a
90% share in the Indonesian company that owns the Taliwang project (remaining
10% held by the West Sumbawa Regency Government), will be sold to a prominent
Indonesian businessman (the "Purchaser") in consideration for the payment of
US$1,600,000 and the granting of a 5% net smelter royalty to Southern Arc. The
Purchaser has the option to buy back 3% of the net smelter royalty by paying
Southern Arc US$3,000,000. The Purchaser has made two payments to Southern Arc
totaling US$400,000 and will pay Southern Arc an additional US$1,200,000 in four
consecutive weekly installments of US$300,000.
"We are very pleased to have entered into this agreement in today's challenging
market conditions, particularly as the net smelter royalty and buy back terms
still allow Southern Arc to participate in the development and future success of
the Taliwang property," said John Proust, Chairman & Chief Executive Officer of
Southern Arc. "Sale of this non-core property will further bolster Southern
Arc's treasury, giving us the financial flexibility to invest in new
high-quality projects that will add value for Southern Arc shareholders."
On behalf of the Board of Southern Arc Minerals Inc.
John Proust, Chairman & Chief Executive Officer
About Southern Arc
Southern Arc Minerals Inc. is a Canadian mineral exploration company focused on
gold and copper-gold exploration. The Company is advancing two properties in
Indonesia: West Lombok, a resource-stage property with several gold-rich copper
porphyry and epithermal gold vein prospects, and East Elang, a grassroots
exploration property that will be advanced in partnership with Vale
International SA. Southern Arc also owns 25% of Eagle Hill Exploration, which
owns the high-grade Windfall Lake Gold Project in Quebec, Canada. More
information is available at www.southernarcminerals.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as such
term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
Forward-looking Statements
This news release contains forward-looking statements relating to expected or
anticipated future events and anticipated results that are forward-looking in
nature and, as a result, are subject to certain risks and uncertainties, such as
general economic, market and business conditions, the regulatory process and
actions, technical issues, new legislation, the uncertainties resulting from
potential delays or changes in plans, the occurrence of unexpected events, and
the company's capability to execute and implement future plans. Actual results
achieved may vary from the information provided herein as a result of numerous
known and unknown risks and uncertainties and other factors.
FOR FURTHER INFORMATION PLEASE CONTACT:
Southern Arc Minerals Inc.
Rhylin Bailie
Vice President, Communications & Investor Relations
604-676-5241
info@southernarcminerals.com
www.southernarcminerals.com
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