TORONTO, ONTARIO--(Marketwire - Dec. 21, 2011) - McChip Resources Inc. (TSX VENTURE:MCS) ("McChip or the "company") is pleased to announce the commencement of actual royalties earned from potash production during November 2011.
Under the terms of the lease agreement, effective September 17, 2008, with Potash Corporation of Saskatchewan Inc. (POT-T) ("PCS"), PCS has the right to mine potash from lands leased from the Company in the Rocanville area of Saskatchewan.
To date the Company has received $400,000 in advance royalties. During the month of November actual royalties were $18,351.78, earned at a rate equivalent to the royalty rate payable to the Crown calculated on Potash Ore from time to time pursuant to the provision of the regulations provided under The Crown Minerals Act of the Province of Saskatchewan. The advance royalty will be recouped by PCS from actual royalties due McChip.
Richard McCloskey, President and CEO of the company said that based on production and price expectations the Company anticipates the royalty stream to have a significant impact on income for future periods.
Statements in this press release other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, constitute forward looking statements. Forward looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the business of the Company, including risks inherent in resource development. As a result, actual results may vary materially from those described in the forward-looking statement.
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Contact Information:
Edward G. Dumond
Corporate Secretary
416.364.2173
416.814.3965 (FAX)