TORONTO, ONTARIO--(Marketwired - Feb. 19, 2014) - Canadian Silver Hunter Inc. (the "Company") (TSX VENTURE:AGH) is pleased to announce that it has acquired a 100% interest in 26 patented mineral claims in South Lorrain, Ontario (the "Veinlode Claims") adjacent to the Company's flagship South Lorrain Project. The claims were purchased from Veinlode Silver Mines Limited ("Veinlode"), a private company.
Under the terms of an asset purchase agreement dated February 19, 2014, between the Company and Veinlode (the "Agreement"), the Company acquired all of the Veinlode Claims from Veinlode. The consideration for this acquisition consisted of the issuance of 40,000 common shares of the Company to Veinlode. The transaction was approved by Veinlode's shareholders at a meeting held on April 26, 2013.
The Company holds a one-third equity interest in Veinlode, acquired pursuant to a share purchase transaction which closed on November 20, 2012, as announced in a press release issued by the Company on the same date. Jeffrey Hunter, President and Chief Executive Officer and a director of the Company, serves as President and a director of Veinlode. In addition, Audrey Lee, Mr. Hunter's spouse, also serves as a director of Veinlode. As such, the purchase of the Veinlode Claims is a "related party transaction" for the purposes of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company is relying on an exemption from the minority approval and formal valuation requirements of MI 61-101 due to the fact that the value of the Veinlode Claims does not represent greater than 25% of the Company's market capitalization.
Jeffrey Hunter, President and Chief Executive Officer of the Company, stated, "Our purchase of the Veinlode Claims is a natural extension of the strategic investment we made in Veinlode. With this acquisition we are expanding our land package at the South Lorrain Project, and we are excited to explore the undeveloped potential of the Veinlode Claims."
About Canadian Silver Hunter Inc.
Canadian Silver Hunter Inc. is a Canadian exploration company focused on the exploration of silver-cobalt deposits on its flagship South Lorrain Project (formerly the Keeley Frontier Project). The South Lorrain Project is located within the historic South Lorrain Silver Camp, which along with the historic Cobalt and Gowganda silver camps is part of a world class silver district in the Abitibi Greenstone Belt between Temagami and Kirkland Lake, in northeastern Ontario.
CAUTIONARY STATEMENT: Neither the 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. This release includes certain "forward-looking statements". These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management's expectations. Forward-looking statements include, or may be based upon, estimates, forecasts and statements as to management's expectations with respect to, among other things, the timing of the Company's exploration, development and business plans, strategic acquisitions, the focus of the Company in the future, progress in and success of development of the Company's mineral properties, and the Company's performance, business prospects and opportunities. Forward-looking statements may be identified by such terms as "believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", or "plan". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to, among other things, outcomes of acquisitions or other corporate transactions, exploration or development on the Company's mineral properties, and the Company's financial condition and prospects, could differ materially from those currently anticipated in such statements for many reasons such as: changes in general economic conditions and conditions in the financial markets; changes in demand and prices for minerals; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; operational difficulties encountered in connection with the activities of the Company; and other matters discussed in this release. This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements. These and other factors should be considered carefully, and readers should not place undue reliance on the Company's forward-looking statements. The Company does not undertake to update any forward-looking statements that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws.