Exercise of Right to Acquire Interest in Buffer Zone
Archon Minerals Limited #2801 – 323 Jervis Street Vancouver, BC, V6C 3P8 Tel: 604-682-3303
EXERCISE OF RIGHT TO ACQUIRE INTEREST IN BUFFER ZONE
September 8, 2014 – Vancouver, British Columbia TSX.V: ACS
Archon Minerals Limited (“Archon” or the “Company”) has given notice today to C. Fipke Holdings Ltd. (“FipkeCo”) that it will exercise its pre-emptive right to acquire, on a pro rata basis, FipkeCo’s interest in the Buffer Zone of the Ekati diamond mine. The pre-emptive right was triggered by an offer from Dominion Diamond Corporation to acquire FipkeCo's 10% interest in the Buffer Zone, as announced in the Company’s news release of July 10, 2014.
By exercising its pre-emptive right, the Company will increase its interest in the Buffer Zone from 31.2% to 34.67%. The purchase price for this additional 3.47% interest will be approximately US$5,893,333, subject to adjustments, and the funds for this acquisition will be provided by a convertible loan from Dr. Stewart Blusson. The convertible loan is subject to acceptance by the TSX Venture Exchange, and will be used to fund the acquisition of the Buffer Zone interest as well as the Company’s upcoming cash calls.
The date of closing will be determined by the parties to the transaction.
ARCHON MINERALS LIMITED “Stewart Blusson”
Stewart Blusson President and Director
Neither the 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.
This news release may contain “forward-looking statements”, which are statements about the future based on current expectations or beliefs. For this purpose, statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements by their nature involve risks and uncertainties, and there can be no assurance that such statements will prove to be accurate or true. Investors should not place undue reliance on forward-looking statements. The Company does not undertake any obligation to update forward-looking statements except as required by law.