Magellan Announces $5.25 Million Financing With Global Royalty Corporation
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/30/12 -- Magellan Minerals Ltd. (TSX VENTURE: MNM)(OTCQX: MAGNF) ("Magellan") is pleased to announce that it has entered into non-brokered term sheet with Global Royalty Corp ("GRC") pursuant to which Magellan will receive $5.25 million. Pursuant to the term sheet, Magellan will grant GRC a 1.5% Net Smelter Return Royalty ("NSR") on its Cuiu Cuiu project in northern Brazil and GRC will subscribe for a private placement in Magellan.
Highlights of the arrangement are as follows:
-- GRC will pay Magellan a total of $4.75 million for a 1.5% NSR royalty
pertaining to the Cuiu Cuiu property which comprises 44,163ha
-- Magellan shall pay GRC an advance royalty of $250,000 per year following
the delivery of a positive Feasibility Study. The advance royalty shall
be credited toward the payment of the royalty
-- GRC shall subscribe for 1 million shares of Magellan at a price of $0.50
per share for proceeds of $500,000
Alan Carter, President & CEO commented "We are extremely pleased with this financing with Global Royalty Corp on our Cuiu Cuiu project, as it results in minimal dilution to our existing shareholders and places the Company in an excellent position to add to the current resources at both Cuiu Cuiu and Coringa. This arrangement also confirms the potential of the Cuiu Cuiu project where 20,000m of drilling has been completed since the release of the initial resource estimate in April 2011".
The net proceeds of the offering will be used to fund exploration and development of Magellan Mineral's mineral projects and for general working capital purposes.
Completion of the offering is subject to a number of conditions including completion of satisfactory due diligence investigations and receipt of all necessary regulatory approvals.
Magellan Minerals (TSX VENTURE: MNM) is a TSX Venture Exchange listed exploration and development company with two advanced gold properties in the Tapajos Province of northern Brazil. The Cuiu Cuiu project contains 100,000oz of gold in the Indicated category (3.4Mt @ 1.0g/t gold) and 1,200,000oz of gold in the Inferred category (31Mt @ 1.2g/t gold). The Coringa project contains Measured and Indicated resources of 561,000oz of gold (3.2Mt @ 5.5g/t gold) and Inferred resources of 534,000oz of gold (5.5Mt @ 3.0g/t gold).
This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.
News Release #2012-9
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Contacts:
Magellan Minerals Ltd.
Alan Carter
President and CEO
604.676.5663
info@magellanminerals.com
Magellan Minerals Ltd.
Jennifer Duthie
Corporate Communications Manager
778.370.0519
Jennifer@magellanminerals.com
www.magellanminerals.com
Global Royalty Corp.
Mark Kucher
President and CEO
604.696.9720
mkucher@globalroyaltycorp.net
