African Queen Mines Signs Formal Asset Purchase Agreement to Acquire Yellowjacket Gold Project in British Columbia
Vancouver, British Columbia / TheNewswire / August 5, 2015 -- African Queen Mines Ltd. (the "Company") is pleased to announce that it has now executed a formal Asset Purchase Agreement with Athabasca Nuclear Corp. (TSX-V: ASC) ("Athabasca"), dated August 5, 2015, to acquire the Yellowjacket Gold Project in British Columbia (the "Project"). The Project includes all mineral rights, claims and leases comprising the Project, all equipment located thereon and any reclamation bond associated therewith. The Company previously announced signing a binding Letter of Intent with respect to this Project in June 2015.
The Project encompasses 23 mineral claims and leases covering an area of approximately 55 sq. km located 9 km East of Atlin, B.C. It includes a permitted mining operation with both hard rock and placer exploration targets.
Pursuant to the terms of the transaction and upon closing, the Company shall pay Athabasca a cash payment of CAD $150,000; and shall issue to Athabasca two million Share Purchase Warrants to purchase Common Shares of the Company for a term of three years from closing, of which one million of said Warrants shall be exercisable at a price of $0.05 per Common Share and one million of said Warrants shall be exercisable at a price of $0.10 per Common Share.
In addition to the foregoing, the Company shall make the following further payments to Athabasca on a contingent basis: (i) 50% of the net proceeds of any equipment sold from the Project (after accounting for any sales agent or broker commissions or bona fide third party sales expenses) within five years from closing if an arm's length sales agent or broker is used; or 40% of the gross proceeds of any equipment sold from the Project within five years from closing if the equipment is marketed or sold directly by the Company; and (ii) in the event the Project is reclaimed within five years from closing, a one-time payment of $100,000.
The transaction is subject to regulatory approval by the TSX Venture Exchange, for which application has been made.
Management of the Company views the acquisition of the Yellowjacket Gold Project as a value-added transaction which will give the shareholders of the Company diversification into North America, whilst the Company continues with efforts to realize value from its projects in Kenya.
About African-Queen
The Company is an exploratory resource company with diversified mineral properties in East Africa. It is exploring its properties in Kenya for gold and other metals, where it has approximately 737 sq. km. of gold and other minerals licenses under agreements with two other companies. Its operations in Kenya are carried out through its operating subsidiary AQ Kenya Gold Limited. The Company has its executive offices in Vancouver, Canada. The Company was incorporated under the laws of the Province of British Columbia, Canada on April 30, 2008, and received certain southern African assets in a spin off transaction related to the acquisition of Pan African Mining Corp. by Asia Thai Mining Co., Ltd.
ON BEHALF OF THE BOARD OF DIRECTORS OF
AFRICAN QUEEN MINES, LTD.
"Irwin Olian"
Irwin Olian
Chairman & CEO
For more information, contact:
| Irwin Olian, President and CEO E-mail: tigertail@africanqueenmines.com Phone: (604) 788-0300 | Carrie Howes, Corporate Communications Email: carrie@africanqueenmines.com Phone : U.K. - +44 (0) 870 490 5443 Canada - +1 416 900 3634 |
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of the information contained herein. The statements made in this press release may contain certain forward-looking statements that involve a number of risks and uncertainties. Actual events or results may differ from the Company's expectations.
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