SOURCE: War Eagle Mining Company Inc.

War Eagle Mining Company Inc.

March 03, 2015 17:54 ET

War Eagle Receives Cash From Sale of Tres Marias Project, Mexico

VANCOUVER, BC--(Marketwired - March 03, 2015) - War Eagle Mining Company Inc. (TSX VENTURE: WAR) ("War Eagle" or the "Company") is pleased to report that it has received a further US$300,000 (approximately Cdn$375,000) installment of the proceeds of the sale in 2014 of the Tres Marias zinc-lead-germanium project in Chihuahua, Mexico to Contratista y Operaciones Mineras SA de CV ("Comsa"), a private Mexican mining company. Total consideration for the sale was US$5,000,000 cash which is to be satisfied by (i) loan repayments totaling US$400,000 cash (now received) plus (ii) the balance in fixed periodic loan repayments totaling $2,100,000 to be received over a period to July 2016, the next such repayment to be US$600,000 in July 2015, (iii) an additional US$400,000 if sales of product are US$20 million or more, (iv) a further US$400,000 if sales of product are US$25 million or more and (v) a 2% net smelter return royalty to a maximum of a further US$2,500,000. Accordingly, total consideration could be as much as US$5,800,000. 

Comsa has numerous permits in place to facilitate mine development and has significantly advanced the final permit application to enable commercial production.

This news release was prepared by management of War Eagle, which takes full responsibility for its contents. 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.

Contact Information

  • For additional information please contact:

    War Eagle Mining Company Inc.

    Thomas R. Atkins
    President and CEO
    416-509-4326

    Malcolm P. Burke
    Director
    604-689-1515 x 308

    Email: info@wareaglemining.com
    Website: www.wareaglemining.com