Macarthur Minerals Ltd.Transaction Update: Sale of Western Australian Iron Ore Projects
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan. 4, 2016) -
THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Macarthur Minerals Ltd. (TSX VENTURE:MMS) (the "Company" or "Macarthur") would like to update shareholders on the status of the Share Sale Agreement with FIG Australia Pty Ltd (previously named GIM Australia Pty Ltd) ("FIG") to dispose of all the shares of its wholly owned subsidiary, Macarthur Iron Ore Pty Ltd ("MIO") for A$6 million ("Sale"). MIO owns all of Macarthur's Western Australian iron ore project tenements.
In accordance with the Share Sale Agreement, FIG and the Company have agreed to extend the period for financial close to January 31, 2016.
The Sale transaction is successfully moving towards completion including recent receipt of Australian Foreign Investment Review Board approval. The current status of satisfaction of Conditions Precedents for the Sale is:
| Conditions Precedent | In Favour Of | Status | ||
| Acquisition by GIM of another project owned by an unrelated third party | Buyer | A contract has been signed by GIM and the third party and that transaction is scheduled for completion on January 31, 2016. | ||
| Expert Reports: | ||||
| - Limited Scope Valuation - Fairness Opinion and Valuation | Buyer & Seller | Satisfied - Macarthur has obtained an independent Fairness Opinion and Valuation | ||
| - Tenement Report | Buyer | In progress | ||
| - Accountant's Report | Buyer | In progress | ||
| - Geological Report | Buyer | This requirement has been waived. | ||
| Satisfactory due diligence being performed by GIM | Buyer | Nearing completion. | ||
| Satisfactory tax advice | Buyer & Seller | Satisfied by Macarthur. Buyer's tax advice is in progress. | ||
| Regulatory Approvals: | ||||
| - Australian Foreign Investment Review Board, if required. | Buyer | Satisfied. | ||
| - TSX-Venture Exchange | Seller | Satisfied - Conditional approval has been obtained. | ||
| Approval for the transaction by disinterested Shareholders | Seller | Satisfied - approved by shareholders at the EGM. |
ABOUT MACARTHUR MINERALS LIMITED (TSX VENTURE:MMS)
Macarthur Minerals Ltd. is an exploration and development company that is focused on identifying counter cyclical investments that complement Macarthur's capabilities.
On behalf of the Board of Directors,
MACARTHUR MINERALS LIMITED
"Cameron McCall"
Cameron McCall, Chairman
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.
Caution Regarding Forward Looking Statements
Certain of the statements made and information contained in this press release may constitute forward-looking information and forward-looking statements (collectively, "forward-looking statements") within the meaning of applicable securities laws, including whether the Transaction will be completed. The forward-looking statements in this press release reflect the current expectations, assumptions or beliefs of the Company based upon information currently available to the Company. With respect to forward-looking statements contained in this press release, assumptions have been made regarding, among other things, the timely receipt of required approvals, the reliability of information, including historical mineral resource or mineral reserve estimates, prepared and/or published by third parties that are referenced in this press release or was otherwise relied upon by the Company in preparing this press release. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and no assurance can be given that these expectations will prove to be correct as actual results or developments may differ materially from those projected in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include fluctuations in exchange rates and certain commodity prices, uncertainties related to mineral title in the project, unforeseen technology changes that results in a reduction in iron ore demand or substitution by other metals or materials, the discovery of new large low cost deposits of iron ore, uncertainty in successfully returning the project into full operation, and the general level of global economic activity. Readers are cautioned not to place undue reliance on forward-looking statements due to the inherent uncertainty thereof. Such statements relate to future events and expectations and, as such, involve known and unknown risks and uncertainties. The forward-looking statements contained in this press release are made as of the date of this press release and except as may otherwise be required pursuant to applicable laws, the Company does not assume any obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.
Contact
Macarthur Minerals Ltd.
David Taplin
CEO
dtaplin@macarthurminerals.com
Tel: +61 407470044
www.macarthurminerals.com
