Americas Bullion Agrees to Cash Settlement with MF Investment and Completes Sale
posted on
Nov 26, 2013 03:21PM
North American Royalties and Assets in Nevada and the Yukon
Tuesday, November 26, 2013 2:02 PM | | |
FSC / Press Release
Americas Bullion Agrees to Cash Settlement with MF Investment and Completes Sale of Royalties to Orion Royalty Company LLCHayden , ID US, November 26, 2013 /FSC/ - Americas Bullion Royalty Corp. (AMB - TSX), ("Americas Bullion" or the "Company") announces that it has reached a settlement with MF Investment Holding Company 1 (Cayman) Limited ("MF Investment") with respect to the senior secured facility agreement dated September 25, 2012 whereby the full amount owing under the facility agreement will be applied to the purchase price of certain royalties. After giving effect to the transaction, the debt with MF Investment is retired and the Company will receive $22.8 million in cash. Background On June 24, 2013 Americas Bullion announced that MF Investment, part of Orion Resource Partners and the Red Kite Group, indicated that it had or intended on issuing notices alleging an Event of Default under the secured facility agreement and asserting rights to exercise an option to purchase twenty-six royalty interests, including the Pan and Bald Mountain interests, by paying Americas Bullion US$35 million. Terms of the Settlement Following amicable discussions, Americas Bullion has entered into an amendment to the senior secured facility agreement with MF Investment, pursuant to which a nominee of MF Investment exercised an option to purchase 18 royalties, including the Pan and the Bald Mountain royalty interests. In connection with the option exercise, Nevada Royalty Corp. ("NRC"), a wholly owned subsidiary of Americas Bullion has entered into an agreement of purchase and sale with Orion Royalty Company LLC ("Orion") pursuant to which NRC has completed the sale of certain royalties to Orion. Pursuant to the agreement, AMB retired its debt to MF Investments and NRC received an initial payment of US$8.8 million. NRC will receive a further US$14 million upon certain post-closing deliveries being satisfied. The list of royalty interests to be transferred to Orion is attached below. For a complete list of assets to be retained by Americas Bullion please visit: www.aubullion.com. "I am pleased to have reached a mutually beneficial agreement with Red Kite and Orion where their interests have been met while our shareholders clearly benefit from having received market value for certain of our royalty interests," said William M. Sheriff, Chairman & CEO. "Americas Bullion, in addition to retiring the Red Kite debt and netting approximately US$22 million cash from this transaction, continues to hold 14 royalty interests, other significant Nevada assets, and its Yukon holdings including the Brewery Creek project. The Board sees great opportunity to build from this cash position in the current market." Americas Bullion Royalty Corp. Americas Bullion Royalty Corp. invests in undervalued natural resource assets seeking to provide superior investment returns. Americas Bullion's assets include royalty holdings across Mexico, Nevada, Wyoming, Oregon and California; control of the Springer Tungsten Mine and Mill; the Taylor mill and Humboldt mill site in Nevada; the Brewery Creek project, and a portfolio of Yukon exploration properties. The Company provides shareholders with the potential for exploration success through equity positions in related companies while continuing to advance and monetize its holdings. For additional information: Americas Bullion Royalty Corp. William M. Sheriff, Chairman & CEO (208) 635-5415 info@aubullion.com www.aubullion.com No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This press release contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance. There are numerous risks and uncertainties that could cause actual results and Americas Bullion's plans and objectives to differ materially from those expressed in the forward-looking information. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, Americas Bullion assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.
To view the press release as a PDF file, please click on the following link: http://www.usetdas.com/pr/americasbullion11252013.pdf Source: Americas Bullion Royalty Corp. (TSX: AMB) http://www.aubullion.com Maximum News Dissemination by FSCwire. http://www.fscwire.com |