Borealis Exploration Limited - Subsidiary Roche Bay Announces Material Transaction with Advanced Exp
Advanced Explorations Inc. Announces Amendment to Roche Bay Royalty
Agreement
TORONTO, ONTARIO--(Marketwired - Dec. 16, 2013) - Advanced Explorations Inc.
(the "Company" or "AEI") (TSX VENTURE:AXI)(FRANKFURT:AE6) announced today
that it has entered into an amendment agreement (the "Amendment Agreement")
with Roche Bay plc and Roche Bay East Limited (collectively "Roche Bay")
pursuant to which the Parties have agreed to amend the terms of the royalty
agreement dated for reference March 23rd, 2009 and entered into on March
31st, 2009 (the "Royalty Agreement"). This Amendment Agreement is intended
by the Parties to extend the payment terms for the Mandatory Minimum Payment
(as defined in the Royalty Agreement), and to grant AEI an additional option
to buy out a portion of the royalty, as further set out below.
Amendment to Mandatory Minimum Payment
The Parties agree to amend the payment terms of the 2013 Mandatory Minimum
Payment currently due and owing to Roche Bay, as follows:
* An initial installment of $50,000 payable on or before December
31st, 2013;
* The amount of $100,000 payable on or before January 31st, 2014; and
* The amounts of $50,000 on each of March 15, 2014, June 15, 2014, and
September 15, 2014
In addition to the cash consideration, AEI shall issue 5,500,000 common
shares within 5 business days of execution of the Amendment Agreement, and
shall further issue common shares to Roche Bay on September 15th, 2014, such
shares are to be deemed to have a total monetary value of $300,000 at a
price per share equal to the volume weighted average price on the 30-day
period prior to issuance.
All securities issuances contemplated herein shall be subject to any
statutory or regulatory requirements with respect to hold period, including
compliance with all rules and policies of the TSX Venture Exchange (the
"Exchange") and subject to ultimate approval by the Exchange. For the
avoidance doubt, the Mandatory Minimum Payments due to Roche Bay on December
15 of each year subsequent shall remain unchanged by the Amendment
Agreement.
Royalty Reduction
Pursuant to the Amendment Agreement, Roche Bay has granted AEI the option
until December 15th, 2020 to exercise a royalty purchase to reduce the
royalty rates set out in the Royalty Agreement to as low as 2%, other than
relating to the Precious Metals Royalty Interest.
ON BEHALF OF THE BOARD
John Gingerich, President & CEO
ABOUT Advanced Explorations Inc.
Advanced Explorations Inc., based in Toronto, Ontario, is a resource
development company focused on developing its Roche Bay and Tuktu Iron Ore
Projects in one of the world's largest developing iron ore districts, the
Melville Peninsula in Nunavut. The Ocean-based Roche Bay Project boasts an
NI 43-101 compliant resource estimate of over 500 million tonnes outlined
within a small portion of the potential 140 km of banded iron formation. A
positive feasibility study for the project's C Zone revealed a net present
value of $642M on a base case 5.5 Mtpa start-up concentrate operation and
substantial upside potential including becoming a low quartile cost
producer. To date, the Company has delineated over 1 billion tonnes of iron
under NI 43-101 among its Roche Bay and Tuktu deposits and continues to
explore other targeted deposits in areas to the north, south and west of
Roche Bay. The management team has extensive technical, exploration and
Canadian Arctic mining expertise to effectively develop the high quality
iron ore opportunities on the Melville Peninsula.
This news release also includes forward-looking statements that involve a
number of risks and uncertainties. The information reflects numerous
assumptions as to industry performance, general business and economic
conditions, regulatory and legal requirements, taxes and other matters, many
of which are beyond the control of the company. Similarly, this information
assumes certain future business decisions that are subject to change. There
can be no assurance that the results predicted here will be realized. Actual
results may vary from those represented, and those variations may be
material.
This news release does not constitute an offer to sell or a solicitation of
an offer to sell any securities in the United States. The securities have
not been and will not be registered under the United States Securities Act
of 1933, as amended (the "U.S. Securities Act") or any state securities laws
and may not be offered or sold within the United States or to U.S. Persons
unless registered under the U.S. Securities Act and applicable state
securities laws or an exemption from such registration is available.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS
THAT TERM IS DEFINED WITHIN THE POLICIES OF THE TSX VENTURE EXCHANGE)
ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Advanced Explorations Inc.
Brendan Purdy
416-203-0057 (ext 320)
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