Montero Announces Sale of Subsidiary for CDN$1.2 million and a 1% Royalty
Montero Announces Sale of Subsidiary for
CDN$1.2 million and a 1% Royalty
NOT FOR DISSEMINATION IN THE UNITED STATES OR OVER UNITED STATES NEWSWIRE SERVICES
Toronto, Ontario – June 26, 2019 – Montero Mining and Exploration Ltd. (TSX-V: MON or “Montero”) has signed a
Letter of Intent (“LOI”) with Australian registered Cheetah Resources Pty Ltd (“Cheetah”) to purchase 100% of its
British Virgin Island subsidiary company holding its rare earth Intellectual Property (“IP”). Montero previously held
a Retention License (“Licenses”) over the Wigu Hill deposit. Changes made in 2017 to the 2010 Mining Act resulted
in the Retention Licence classification being abolished and ownership transferred to the Government of Tanza nia.
Montero has applied for a Mining License over the area once covered by the Retention License .
Cheetah paid Montero a non -refundable CDN$100,000 fee on s ignature of the LOI to acquire the rare earth IP
rights to the Wigu Hill deposit . Cheetah will initially fund a CDN$500,000 development program over 6 months to
complete a legal and technical due diligence of the IP . Cheetah will have an option to acquire all Montero’s equity
interest for CDN$1.1 million in Wigu Hill (BVI) Ltd. after which Cheetah will grant and regis ter a 1% net smel ter
return royalty payable to Montero on any production from the IP and Licenses awarded. Should Cheetah decide at
any time not to proceed then all the IP will revert to Montero. The final agreement is also subject to Montero
receiving regulatory approval if required.
Dr. Tony Harwood, President and Chief Executive Officer of Montero c ommented, “Montero has elected to sell its
rare earth intellectual property and assets for CDN$1,200,000 and retain a 1% net smelter return royalty on any
future production. Cheetah Reso urces i s a rare earth resource company and focussed on funding and advanc ing
rare earth projects . The transaction will allow Montero to focus on advancing our lithium projects in Namibia and
Chile.”
Cheetah is a n Australian special purpose vehicle company established to focus on the fast -track development of
rare earth and other specialty metal projects.
About Montero
Montero has acquired the Soris lithium -tantalum-tin Project and optioned the UIS lithium -tin tailings Project in
Namibia in order to pro ve up a significant Lithium resource s with tin and tantalum credits . The Company has also
made a lithium discovery in the Atacama region of northern Chile. Lithium is a cri tical battery metal. Montero’s
focus is to advance its Namibian assets while seeking partners to advance the balance of its assets. Montero trades
on the TSX Venture Exchange under the symbol MON.
For more information, contact:
Montero Mining and Exploration Ltd.
Dr. Tony Harwood, President and Chief Executive Officer
E-mail: [email protected] Tel: +1 416 840 9197 | Fax: +1 866 688 4671. | www.monteromining.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 release.
CAUTIONARY STATEMENT REGARDING FORWAR D-LOOKING INFORMATION: This news release includes certain "forward -looking information" within the meaning of applicable
Canadian securities laws. Forward -looking informat ion includes, but is not limited to, statements, projections and estimates . Generally, forward -looking information can be
identified by the use of forward -looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “schedu led”, “estimates”, “forecasts”, “intends”,
“anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or resu lts “may”, “could”, “would”, “might” or
“will be taken”, “occur” or “be a chieved”. Such information is based on information currently available to Montero and Montero provides no assurance that actual results will
meet management's expectations. Forward -looking information by its very nature involves inherent risks and uncertai nties that may cause the actual results, level of activity,
performance, or achievements of Montero to be materially different from those expressed or implied by such forward -looking information. Actual results relating to, among other
things, results of e xploration, project development, reclamation and capital costs of Montero’s mineral p roperties, and financial condition and prospects, could differ materially
from those currently ant icipated in such statements for many reasons such as: changes in general economic conditions and conditions in the financial markets; changes in
demand and pr ices for miner als; litigation, legislative, environmental and other judicial, regulatory, politica l and c ompetitive developments; technological and operational
difficulties encountered in connection with Montero’s activities; and other matters discussed in this news rel ease and in filings made with securities regulators. This list is not
exhaustive of the factors that may affect any of Montero’s forward -looking statements. These and other factors should be considered carefully and accordingly, readers shoul d
not place un due reliance on forward -looking information. Montero does not undertake to update an y forwa rd-looking information, except in accordance with applicable
securities laws.