TORONTO, ONTARIO--(Marketwired - May 5, 2014) - Melior Resources Inc. (TSX VENTURE:MLR) ("Melior" or the "Corporation"), is pleased to announce that Belridge Enterprises Pty Ltd ("Belridge") has today entered into an agreement to repurchase a 1.0125% royalty from Goody Investments Pty Ltd ("Goody") on the gross income from all ilmenite and apatite sold from the Goondicum project. Goody will maintain a royalty interest over other minerals on the property. Belridge will pay Goody A$600,000 for the royalty interest.
The purchase of the royalty by Belridge will be funded through the extension of the existing short term financing facility between Melior and Belridge. The loan has been increased by a further C$900,000, to a total of C$1,400,000, to include the payment of the royalty and to fund ongoing operational costs though to closing of acquisition of Belridge, as detailed in a press release of 31 March 2014 (the "Potential Transaction").
Charles Entrekin, Chairman and CEO of Melior commented "We are very pleased with the purchase of the royalty interest in the Goondicum project which is an important milestone in lowering the overall cost structure of the business.
We have made significant progress towards the closing of the Potential Transaction and look forward to being able to start the redevelopment of the Goondicum operation in the near future."
About the Corporation
The Corporation is incorporated under the provisions of the Business Corporations Act (British Columbia) and has a registered office in Toronto, Ontario. The Corporation currently operates as a Tier 1 Investment Issuer under the policies of the Exchange. After completion of the Proposed Transaction, the Corporation is expected to be classified as a Tier 1 Mining Issuer under the policies of the Exchange.
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.
Forward Looking Statements Disclaimer
Certain information contained in this news release constitutes forward looking information under the provisions of Canadian securities laws. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the use of forward-looking terminology such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", "projects", "potential", "believes" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "should", "might" or "will" be taken, "occur" or "be achieved" or the negative connotation. Such statements and information include, without limitation, statements regarding, the estimated mineral resources at the Goondicum property, and other benefits of the Potential Transaction. This forward looking information is subject to numerous risks, uncertainties and assumptions, certain of which are beyond the control of Melior, including, without limitation, risks relating to acquisitions, such as the parties may be unable to complete the acquisition, problems may arise with the ability to successfully integrate the businesses of Belridge and Melior, the parties may be unable to obtain regulatory approvals required for the acquisition, Melior may not be able to achieve the benefits from the acquisition or it may take longer than expected to achieve those benefits; and the acquisition may involve unexpected costs or unexpected liabilities. Other risks include the impact of general economic conditions; industry conditions; volatility of minerals prices; volatility of commodity prices; currency fluctuations; mining risks; risks associated with foreign operations; governmental and environmental regulation; competition from other industry participants; the lack of availability of qualified personnel or management; stock market volatility. Readers are cautioned that the material assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise. Actual results, performance or achievement could differ materially from those expressed in, or implied by, this forward-looking information and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking information will transpire or occur, or if any of them do so, what benefits Melior will derive therefrom. Melior disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.