TORONTO, ONTARIO--(Marketwired - Jan. 30, 2017) - Canadian Silver Hunter Inc. ("CSH" or the "Company") (TSX VENTURE:AGH.H) is pleased to announce that it has entered into a binding option agreement (the "Option Agreement") with Cobalt Projects International Corp. ("Cobalt"), whereby Cobalt may earn up to a 100% interest in the South Lorrain Project, the Company's flagship mineral exploration property (the "Property").
The highlights of the Option Agreement are as follows:
- The Option Agreement is comprised of three separate options which permit Cobalt to earn a fifty percent (50%) interest (the "First Option"), an additional one percent (1%) interest (the "Second Option"), and an additional forty-nine percent (49%) interest (the "Third Option") in and to the Property.
- Cobalt may exercise the First Option by paying an aggregate amount of $850,000 and incurring total cumulative expenditures of $1,750,000 on the Property over a period of three (3) years from the effective date of the Option Agreement.
- Subject to the receipt of TSXV approval, Cobalt may exercise the Second Option by paying an aggregate amount of $200,000 within sixty (60) days of having exercised the First Option and by producing a report in compliance with the standards of National Instrument 43-101 - Standards of Disclosure for Mineral Projects on or before the fourth (4th) anniversary of the effective date of the Option Agreement.
- Subject to the First Option and Second Option having been exercised, Cobalt may exercise the Third Option by paying an aggregate of $750,000 and incurring expenditures of $1,250,000 on or before the fifth (5th) anniversary of the effective date of the Option Agreement.
- If at any time Cobalt exercises the First Option or Second Option but does not elect to earn a further interest in and to the Property, then CSH and Cobalt shall form a joint venture for the development and mining of any commercially exploitable ore body on the Property.
- Once the conditions of exercise of the First Option, Second Option and Third Option have been satisfied, Cobalt will own a 100% interest in the Property and shall grant a 2% net smelter return royalty to CSH with a right of Cobalt to purchase one-half of the royalty for $1.0 million at any time in the first 10 years.
About Canadian Silver Hunter Inc.
CSH 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 cobalt-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.