Sultan Minerals and Margaux Resources Amend Option Agreement Regarding the Purchase of the Jersey Emerald Property
SULTAN MINERALS INC.
Suite 2000 – 1066 West Hastings Street Vancouver, B.C. V6E 3X2 www.sultanminerals.com
October 30, 2015 TSX Venture Exchange Symbol: SUL SEC 12g3-2(b): 82-4741 Frankfurt Stock Exchange: RZN
Sultan Minerals and Margaux Resources Amend Option Agreement Regarding the Purchase of the Jersey Emerald Property
Vancouver, BC – October 30, 2015: Sultan Minerals Inc. (TSX-V: SUL; “the Company, “Sultan”) reports that the Company has reached an agreement (“the Amending Agreement”) with Margaux Resources Ltd. (TSX-V: MRL; “Margaux”) to amend the Option Agreement dated November 8, 2013 between Sultan and Margaux granting Margaux an option to purchase 100% of the Jersey Emerald Property for payments totaling $4 million according to terms set therein.
Pursuant to the Amending Agreement, Margaux will have the exclusive option to acquire a 100% working interest in the Property subject to the net smelter returns royalties ("NSRs") discussed below by:
1) making payments to Sultan of an aggregate $4.0 million, paid in several installments on or before November 8, 2016 (the "Agreement Date") as follows:
a) an initial deposit of $50,000 paid previously;
b) a cash payment of $150,000 on or before January 24, 2014;
c) on or before the January 24, 2014, a cash payment of $300,000, to be held in trust pending receipt of TSX Venture Exchange approval for the transaction (for an aggregate payment of $500,000);
d) on or before the first anniversary of the Agreement Date, a cash payment of $400,000 (for an aggregate payment of $900,000);
e) on or before December 31, 2015, a cash payment of $350,000 (for aggregate payments hereunder of $ 1,250,000); and
f) on or before December 31, 2015, a cash payment of $1,250,000 (for aggregate payments hereunder of $ 2,500,000); and
g) on or before the third anniversary of the Agreement Date, a cash payment of $1,500,000 (for aggregate payments hereunder of $4,000,000); and
2) incurring not less than $2,000,000 in expenditures on the Property on or before the third anniversary of the Agreement Date.
The other terms of the Option Agreement remain unchanged, including Sultan's retention of a 1.5% NSR on the Property. For a period of 60 days following the earlier of (a) the commencement of commercial production on the Property or (b) the completion of a feasibility study on the Property, Margaux may purchase 50% of the NSR (being a 0.75% net smelter returns royalty) from Sultan for a payment to Sultan of $5.0 million. The Property is also subject to several additional NSRs, ranging from 1-3% on various areas of the Property.
For further information on the Company's projects, visit www.sultanminerals.com.
Arthur G. Troup, P.Eng., Geological
President and CEO
For further information please contact:
Marc Lee, Investor and Corporate Communications Tel: (604) 628-0519 Fax: (604) 628-0446 Email: [email protected] or [email protected]
This release was prepared by Sultan's management. Neither TSX Venture Exchange nor its Regulation Services Provider (as the term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release includes certain statements that may be deemed "forward-looking statements." All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that Sultan expects are forward-looking statements. Although Sultan believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements. For more information on Sultan, investors should review Sultan's filings that are available at www.sedar.com or Sultan's website at www.sultanminerals.com.