VANCOUVER,
July 4, 2013 /PRNewswire/ - Anglo
Swiss Resources Inc. (ASW: TSX-V, ASWRF: PK) ("Anglo Swiss" or the "Company") wishes
to announce that it has amended the terms of the agreement to sell
its Kenville Gold Property (the "Property"), located in
southeastern BC, to Eagle Creek Gold Corp. ("Eagle Creek"),
a private Alberta based
company.
Total consideration for the purchase of the
Property has been reduced to CDN$8,000,000 which shall be satisfied by the
delivery to Anglo Swiss of the
$100,000 deposit (received) and
$1,900,000 on closing, scheduled for
August 15, 2013, with the balance
payable in stages to August 15,
2017.
Additionally, Eagle Creek shall pay Anglo Swiss a perpetual 1% Net Smelter Royalty
on all production from the Property. Eagle Creek is committed to
invest a minimum of $5,000,000 into
mining operations on the Property and to make all reasonable
efforts to initiate one hundred (100) tonnes of production per day
from the underground vein structures contained within the
Property.
Jari Paakki, CEO
commented, "The volatility in the price of gold has caused the
financiers of Eagle Creek to require an adjustment in payment due
on closing and a reduction in the total consideration as well as an
extension of time to pay the balance. If the price of gold is
greater than or equal to US$1,700 per
ounce for any six (6) calendar months between January 1, 2015 and December 31, 2017, a further advance royalty
payment of $2,000,000 shall be
payable December 31, 2017. The
Kenville Gold Property remains a perfect fit for a private company
with the goal of achieving small-scale production. The transaction
will still provide Anglo Swiss with
appreciable short term cash allowing us to identify and acquire a
new asset with the potential for larger scale production and to
advance the Company's Blu Starr Flake Graphite project as well as a
further long term royalty payment. Cash payments into 2017 provide
the Company with sustained working capital, minimizing near-term
financings and share dilution. This is an exceptional opportunity
that we believe will greatly improve the Company's future ability
to grow and increase shareholder value."
Completion of the transaction is subject to
approval of the shareholders of Anglo
Swiss at the Special Meeting to be held on August 7, 2013.
Each party will pay its own costs and expenses
in connection with the transaction. In addition, the parties
have agreed that Anglo Swiss will
pay Eagle Creek a break fee if the transaction is not completed
under certain circumstances, and Eagle Creek has the right to match
any Superior Proposal for the Property.
Additional information regarding this proposed
transaction will be provided in the management information circular
that will be mailed to registered shareholders and filed on SEDAR
at http://www.sedar.com.
ON BEHALF OF THE BOARD OF DIRECTORS,
Jari Paakki, P.Geo.
CEO
About Anglo
Swiss:
Anglo Swiss Resources Inc. is a Canadian based exploration company
with current assets including its Kenville
Gold Mine and Blu Starr Flake
Graphite properties in southeastern BC, and its Lansdowne House, Ring of Fire
Nickel-Copper-PGE property in northwestern Ontario. Further information about the Company
may be found in the Company presentation at
http://www.anglo-swiss.com or at http://www.sedar.com.
Cautionary Note Regarding Forward-Looking
Statements: Certain statements made herein may contain
forward-looking statements or information within the meaning of
Canadian securities laws. Such forward-looking statements or
information include, but are not limited to, statements or
information with respect to Anglo Swiss Resources' plan for future
exploration and development of its properties. Forward-looking
statements or information are based on a number of estimates and
assumptions and are subject to a variety of risks and
uncertainties, which could cause actual events or results to differ
from those reflected in the forward-looking statements or
information. Should one or more of these risks and uncertainties
materialize, or should underlying estimates and assumptions prove
incorrect, actual results may vary materially from those described
in forward-looking statements or information. For example,
there is no certainty, that any economically viable mineral deposit
will be located on the Property, or that the Company will be able
to raise sufficient capital to complete all of its exploration and
drill programs. Accordingly, undue reliance should not be placed on
forward-looking statements or information. Anglo Swiss does not expect to update
forward-looking statements or information continually as conditions
change, except as may be required by securities law.
Neither 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
SOURCE Anglo Swiss Resources Inc.
