VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sept. 2, 2014) - Scott Baxter, President and CEO of Sniper Resources Ltd. (TSX VENTURE:SIP) ("Sniper" or the "Company") is pleased to announce:
Acquisition of Weepah Gold Property, Nevada
Sniper has closed its acquisition of the Weepah gold property ("Weepah") in Esmeralda County, Nevada, TSX approval having been received. Weepah was previously held under an option agreement.
Sniper acquired a 100% interest in Weepah as follows:
a) Sniper issued 7,647,503 shares subject to a hold period expiring December 30, 2014 to Columbus Gold Corporation ("Columbus")which, when added to Sniper shares already held by Columbus, will total 12,785,503 shares (19.99% of Sniper's issued capital) and Sniper in return for a 50.01% vested ownership of Weepah, and
b) on July 1, 2017 Sniper will issue to Columbus additional shares which, when added to 12,785,503, will be a sum to equal 19.99% of the then issued capital to acquire the final 49.99% beneficial interest in Weepah.
Columbus retains a 1% Net Smelter Return royalty ("NSR") which may be purchased for US$1,500,000. Additionally Sniper will honour certain terms of an underlying agreement with Cordilleran Exploration Company ("Cordex") including a 2% NSR and a US$10,000 per annum advance royalty commencing July 1, 2016.
Sniper a shares-for-debt settlement with one arm's length creditor issuing 1,271,233 shares to settle $63,561.67 of debt. The shares are subject to a hold period expiring December 30, 2014.
"The Weepah purchase agreement negotiated by Sniper CFO John Cumming and I removed all uncertainty regarding title thereby significantly reducing the investment risk for both existing shareholders and future new investors," said Sniper President Scott Baxter. "Sniper will get clear title to 100% of Weepah without paying any cash. We are now clear to focus on raising capital that will devoted to a drill program which could commence as soon as funds are in hand. Additionally settling Sniper's only significant arm's length debt with stock will preserve all new cash raised for Weepah drilling. Management's opinion is that a prompt drill program at Weepah is the fastest path to increasing shareholder value and with title now secure I look forward to moving the project forward as soon as possible."
About Sniper Resources Ltd.
Sniper Resources Ltd. is engaged in the identification, acquisition and exploration of gold properties in the State of Nevada, USA. Sniper owns a 100% interest in the Laura exploration property and is acquiring at 100% interest in the Weepah property, all in Nevada.
For further information about Sniper Resources and its Nevada projects please contact Mr. Scott Baxter, President and CEO at (604) 263-5614 or via email firstname.lastname@example.org.
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Please visit the Sniper Resources Ltd. website at www.sniperresources.com
Sniper Resources Ltd.
Scott Baxter, President and CEO
This press release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future exploration drilling, exploration activities and events or developments that the Company expects, are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions.
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.