VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 28, 2013) - War Eagle Mining Company Inc. (News - Market indicators) ("War Eagle" or the "Company") reports that, on August 8, 2013 the Company's BVI subsidiary, Tombstone Mining Inc. ("Tombstone BVI"), entered into a preliminary agreement with Contratista y Operaciones Mineras SA de CV ("COMSA"), a Mexican mining company, to sell all its shares of its Mexican subsidiary, Tombstone Exploration de Mexico SA de CV ("Tombstone Mexico") to COMSA. Tombstone Mexico is the owner of the Tres Marias zinc-lead-germanium project in Chihuahua, Mexico. Total consideration for the purchase of Tombstone Mexico of US$2,500,000 cash will be satisfied by (i) US$50,000 payable on signing a definitive agreement with the balance in periodic payments over three years and (ii) a 2% net smelter return royalty to a maximum of a further US$2,500,000 with a possible increase to a maximum of up to US$3,300,000 depending on metal sales volumes and prices.
President and CEO of War Eagle, Thomas Atkins, commented on the sale of the Tres Marias property stating: "Tres Marias is a unique deposit in which exploration to date has defined a resource that is unlikely to be able to be developed as a stand-alone operation. The transaction with COMSA enables the development of the mineral resource at Tres Marias such that shareholders of War Eagle can realize a return from the prior investment in the property. COMSA intends to mobilize mobile equipment that should enable the mining and processing of the mineral resource at Tres Marias to the mutual benefit of both COMSA and War Eagle."
Completion of the transaction is subject to signing a definitive agreement, approval from the TSX Venture Exchange and approval of the Company's shareholders
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.
Legal Notice Regarding Forward Looking Statements
This disclosure contains certain forward-looking statements that involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control including: the impact of general economic conditions in the areas in which the Company operates, industry conditions, changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in commodity prices, foreign exchange or interest rates, stock market volatility and obtaining required approvals of regulatory authorities. In addition there are risks and uncertainties associated with mining operations, therefore the Company's future results, performance or achievements could differ materially from those expressed in these forward-looking statements will transpire. All statements included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements include references to a future drill program and related plans. These statements are based on assumptions made by the company based on its experience, perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances.
