Vancouver, B.C., April 17, 2015 -Global Minerals Ltd. (TSX V: CTG; Frankfurt: DFPM - "Global" or the "Company") with regret has agreed to transfer and right down 100% of its interest in the Strieborná Silver-Copper Project to a private local investor group ("Group") in exchange for the Group assuming all of the associated liabilities that include amongst other things, mine dewatering, mine site security, and local regulatory costs. The estimated costs to maintain the mine are approximately $1.2M per annum. Global currently has approximately $120,000 cash and does not have sufficient funds to maintain the Strieborná project. Upon Strieborná transfer completion the Company will have no material assets.
The Company has aggressively sought all potential avenues for securing financing for continuing operations at Strieborná, including but not limited to multilaterial institutions, portfolio investors, private equity investors, investment banks, commercial banks and private individuals. Simultaneously, the Company aggressively pursued strategic investors, including several dozen public companies in the same or similar asset class as Global. The common issue for all such investors was the low silver price environment and the high holding costs for the project. Multiple interested parties signed Non-Disclosure Agreements to conduct due diligence, and the Company has received definitive negative decisions from all such interested parties.
The divestiture of Strieborná requires shareholder approval under British Columbia corporate law and TSX Venture Exchange rules. As a result, the Company will be preparing and distributing to shareholders an information circular with more detailed information regarding the proposed transaction and will be seeking shareholder approval for the transaction at an upcoming special shareholders meeting.
For further information about Global, visit www.globalminerals.com, or contact Tim McCutcheon, CEO at [email protected], 877.356.0674.
FORWARD-LOOKING STATEMENTS AND FORWARD-LOOKING INFORMATION: This news release contains certain "forward-looking statements" within the meaning of applicable Canadian securities laws. Forward-looking statements and forward-looking information are frequently characterized by words such as "plan," "expect," "project," "intend," "believe," "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur.
FORWARD-LOOKING STATEMENTS are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other geological data, fluctuating metal prices, the possibility of projectcost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future and other factors. The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.
Readers are advised that National Instrument 43‑101 of the Canadian Securities Administrators requires that each category of mineral reserves and mineral resources be reported separately. Readers should refer to the continuous disclosure documents filed by Global and available at www.sedar.com, for detailed information, which is subject to the qualifications and notes set forth therein.
The mineral resources are reported in accordance with Canadian Securities Administrators' National Instrument 43-101 and have been estimated in conformity with generally accepted CIM Estimation of Mineral Resource and Mineral Reserves Best Practices Guidelines. Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the mineral resource will be converted into mineral reserve.
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy
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