Canasil Signs Definitive Agreement Providing for Pan American to Acquire Canasil’s Interest in the Sandra-Escobar Project and Closes Transaction for CDN $2 Million and 2% NSR Interest
Suite 1760 – 750 West Pender Street
Vancouver, BC
Canada V6C 2T8
Tel: 604-708 3788
Fax: 604-708 3728
Email: [email protected]
NEWS RELEASE TSX-V: CLZ
June 28, 2019 www.canasil.com
Canasil Signs Definitive Agreement Providing for Pan American to Acquire Canasil’s Interest in the
Sandra-Escobar Project and Closes Transaction for CDN $2 Million and 2% NSR Interest
Vancouver, June 28, 2019 - Canasil Resources Inc. ( TSX-V: CLZ , DB Frankfurt: 3CC, “Canasil” or the
“Company”) announces that the Company and Pan American Silver Corp. (TSX: PAAS, NASDAQ: PAAS),
through its subsidiary Plata Panamericana SA de CV (“Pan American”), have signed the definitive agreement
providing for Pan American to acquire Canasil’s interest in the Sandra-Escobar project in Durango, Mexico
(the “Definitive Agreement”), and closed the transaction for a payment of CDN $2 million and grant of a 2%
net smelter returns royalty interest on Pan American’s interest in the project (“NSR Royalty Interest”). Pan
American retains the right to reduce the NSR Royalty Interest to 1% at any time by paying the Company
CDN $4 million. The Definitive Agreement supersedes all prior agreements and arrangements between
Canasil and Pan American with respect to the Sandra-Escobar project.
Canasil CEO, Bahman Yamini, commented: “We are pleased to have concluded the sale of Canasil’s interest
in Sandra-Escobar to Pan American. This arrangement provides significant non-dilutive funding to maintain
and advance our project portfolio, which includes drill ready high grade silver-gold-base metal projects in
Mexico and prospective gold-copper exploration projects in British Columbia, Canada. In addition to the
cash payment Canasil will retain exposure to the upside potential of the Sandra-Escobar project through the
retained NSR Interest.”
Sandra and Escobar Silver-Gold Properties, Durango, Mexico
The Sandra and Escobar Properties are located 200 km northwest of the city of Durango, Mexico, in the
heart of the “Mexican Silver Trend”. The combined properties cover over 6,970 hectares of mineral
concessions hosting multiple mineralized structures with zones of disseminated silver mineralization as well
as quartz veins and breccia structures. Excellent infrastructure exists in the Sandra Escobar area, including
paved road access, electrical power, water and manpower from nearby communities.
About Canasil:
Canasil is a Canadian mineral exploration company with a strong portfolio of 100% owned silver-gold-
copper-lead-zinc projects in Durango and Zacatecas States, Mexico, and in British Columbia, Canada. The
Company’s directors and management include industry professionals with a track record of identifying and
advancing successful mineral exploration projects through to discovery and further development. The
Company is actively engaged in the exploration of its mineral properties, and maintains an operating
subsidiary in Durango, Mexico, with full time geological and support staff for its operations in Mexico.
The technical information herein has been reviewed and approved by J. Blackwell (P. Geo.), a Qualified
Person as defined by National Instrument 43-101. Mr. Blackwell is a technical advisor to Canasil.
Canasil Resources Inc.
News Release, June 28, 2019 page 2/2
For further information please contact:
Bahman Yamini
President and C.E.O.
Canasil Resources Inc.
Tel: (604) 709-0109
www.canasil.com
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 news release.
This news release includes certain statements that may be deemed to be “forward-looking statements”. All statements
in this release, other than statements of historical facts are forward looking statements, including statements that
address future mineral production, reserve potential, exploration drilling, exploitation activities and events or
developments. These statements involve known and unknown risks, uncertainties and other factors that may cause
actual results or events to differ materially from those anticipated in such forward-looking statements. 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 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, but are not limited to, changes in commodities prices, exploration
successes, continued availability of capital and financing, and general economic, market or business conditions. The
reader is referred to the Company’s filings with the Canadian securities regulators for disclosure regarding these and
other risk factors. There is no certainty that any forward looking statement will come to pass and investors should not
place undue reliance upon forward-looking statements.