Huakan International Mining Inc.

Huakan International Mining Inc.

October 09, 2012 09:07 ET

Huakan International Mining Inc. Announces an Amendment to the Agreement Relating to the Net Smelter Returns Royalty on the Greenwood Gold Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 9, 2012) - Huakan International Mining Inc. (TSX VENTURE:HK) (the "Company") reports that the Company has agreed to allow Gold Crown LLC and its wholly owned subsidiary, AMT Industries Canada Inc. (collectively, the "Purchasers") an extra 30 days to execute and deliver to the Company a safekeeping agreement (the "Safekeeping Agreement") and post a reclamation bond with the Government of British Columbia in an amount and form acceptable to the Government of British Columbia (the "Reclamation Bond") to enable the release of the Company's reclamation bond of C$450,000 and the assignment of the mine permits from the Company to the Purchaser according to the amended asset purchase agreement in respect of the Company's Greenwood Gold Project (the "Agreement").

As part of a letter agreement entered into on August 7, 2012 (see the News Release of the Company dated August 8, 2012), the Purchasers agreed to provide the Safekeeping Agreement and to post the Reclamation Bond by October 6, 2012. The deadline for the Purchasers to complete the above has been extended to November 5, 2012. Following the execution and delivery of the Safekeeping Agreement and the posting of the Reclamation Bond by the Purchasers, the parties have agreed to cooperate in order to transfer the mining permits in respect of the Greenwood Gold Project from the Company to the Purchasers. All other terms and conditions of the Agreement remain unchanged.


Certain of the statements made and information contained herein may contain forward-looking statements or forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or forward-looking information include, but are not limited to, statements concerning the sale of the Greenwood Gold Project assets. Forward-looking statements or information include statements regarding the expectations and beliefs of management. Often, but not always, forward-looking statements and forward-looking information can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements or information include, but are not limited to, statements or information with respect to known or unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information.

Forward-looking statements or information are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements or information, including, without limitation, risks and uncertainties relating to: completion of announced transactions, history of losses; requirements for additional capital; dilution; loss of its material properties; interest rates increase; global economy; limited history of production; speculative nature of exploration activities; periodic interruptions to exploration, development and mining activities; environmental hazards and liability; industrial accidents; failure of processing and mining equipment; labour disputes; supply problems; commodity price fluctuations; uncertainty of production and cost estimates; the interpretation of drill results and the estimation of mineral resources and reserves; legal and regulatory proceedings and community actions; title matters; regulatory restrictions; permitting and licensing; volatility of the market price of common shares; insurance; competition; hedging activities; currency fluctuations; and loss of key employees. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements or information. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information. The Company disclaims any intent or obligation to update forward-looking statements or information except as required by law, and you are referred to the full discussion of the Company's business contained in the Company's reports filed with the securities regulatory authorities in Canada.

Neither the TSX Venture Exchange nor its Regulations 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.

Contact Information

  • Huakan International Mining Inc.
    Fiona Leung
    Chief Financial Officer
    (604) 694-2344