Havilah Mining Corporation Announces Asset Purchase Agreement with 55 North Mining Inc.
Havilah Mining Corporation Announces Asset
Purchase Agreement with 55 North Mining Inc.
TORONTO
,
Aug. 7, 2018
/CNW/ -
Havilah Mining Corporation
(TSXV:
HMC
) ("
Havilah
" or the
"
Company
") is pleased to announce that it has, through a wholly-owned subsidiary, Havilah Mining
Canada Ltd. ("
Havilah Canada
"), entered into an asset purchase agreement (the "
Agreement
")
with 55 North Mining Inc. (formerly SGX Resources Inc.) ("
55 North
") to acquire all of 55 North's
50% interest in the Tully mining claims and mining lease located in
Timmins, Ontario
(the "
Tully
Property
") an exploration property in
Ontario
(the "
Acquisition
").
Havilah Canada
is currently the
holder of the other 50% interest in the Tully Property. Upon completion of the Acquisition,
Havilah
Canada
will be the 100% direct owner of the Tully Property.
Under the terms of the Agreement,
Havilah Canada
will acquire 55 North's legal and beneficial right,
title and interest in and to all of 55 North's 50% in the Tully Property in exchange for consideration
which includes payment of
$200,000
in cash for the settlement of outstanding litigation between 55
North and a former employee and the waiver of outstanding liabilities owing to the Company by 55
North in the amount of approximately
$970,552
.
Additionally, pursuant to the terms of the Agreement, concurrent with the closing of the Acquisition,
55 North is required to complete a non-brokered private placement (the "
Placement
") offering of
3,333,333 post-consolidation common shares of 55 North (the "
55 North Shares
") to
Havilah
Canada
, at a price of
$0.06
per 55 North Share, for aggregate gross proceeds of
$200,000
.
Havilah
Canada
currently owns 14,349,085 55 North Shares representing approximately 24.57% of the
issued and outstanding 55 North Shares.
Completion of the Acquisition and the Placement is subject to the satisfaction of certain conditions
precedent as well as the approval of the TSX Venture Exchange (the "
TSXV
"). The Acquisition is
expected to close on
September 30, 2018
, or such other date as the parties may agree upon.
ABOUT HAVILAH
Havilah Mining Corporation is a junior gold producer that owns the True North mine and mill complex
("True North") currently processing historic tails. In addition to operating True North in
Bissett,
Manitoba
, Havilah owns approximately 43,600 hectares of land surrounding the 40 hectare package
that True North is located. Havilah believes their land package is a prime exploration opportunity to
create a mining district with a central milling facility. Also, the company owns the Tully project in
Timmins, Ontario
. The Company will focus on both organic growth opportunities and accretive
acquisition opportunities in
North America
.
ON BEHALF OF THE BOARD OF DIRECTORS
Blair Schultz
Chairman and Interim President and Chief Executive Officer
Neither the TSXV nor its Regulatory Services Provider (as that term is defined in the policies of the
TSXV) accepts responsibility for the adequacy or accuracy of this news release.
CAUTIONARY STATEMENT REGARDING FORWARD LOOKING INFORMATION
This press release may contain forward-looking statements. Often, but not always, forward-looking
statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is
expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not
anticipate", or "believes", or describes a "goal", or variation of such words and phrases or state that
certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be
achieved. This press release may contain forward-looking statements. Often, but not always,
forward-looking statements can be identified by the use of words such as "plans", "expects", or
"does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends",
"anticipates" or "does not anticipate", or "believes", or describes a "goal", or variation of such words
and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will"
be taken, occur or be achieved.
All forward-looking statements reflect the Company's beliefs and assumptions based on information
available at the time the statements were made. Actual results or events may differ from those
predicted in these forward-looking statements. All of the Company's forward-looking statements are
qualified by the assumptions that are stated or inherent in such forward-looking statements, including
the assumptions listed below. Although the Company believes that these assumptions are
reasonable, this list is not exhaustive of factors that may affect any of the forward-looking
statements.
Forward-looking statements involve known and unknown risks, future events, conditions,
uncertainties and other factors which may cause the actual results, performance or achievements to
be materially different from any future results, prediction, projection, forecast, performance or
achievements expressed or implied by the forward-looking statements. All statements that address
expectations or projections about the future, including but not limited to, statements about the
proposed Acquisition and Placement, and contemplated approvals of the TSXV and the Company's
plans for the Tully Property, are forward-looking statements. Although Havilah has attempted to
identify important factors that could cause actual actions, events or results to differ materially from
those described in forward-looking statements, there may be other factors that cause actions,
events or results not to be as anticipated, estimated or intended. There can be no assurance that
forward-looking statements will prove to be accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly, readers should not place undue
reliance on forward-looking statements.
The Company disclaims any intention or obligation to update or revise any forward-looking
statements whether as a result of new information, future events, or otherwise, except in
accordance with applicable securities laws.
SOURCE
Havilah Mining Corporation
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For further information:
please contact: Shaun Heinrichs, CPA, Interim Chief Financial Officer,
CO: Havilah Mining Corporation
CNW 08:00e 07-AUG-18