TORONTO , Oct. 20, 2014 /CNW/ - Sulliden Mining Capital Inc. (SMC.TO) ("Sulliden" or the "Company") has entered into an agreement with Aguia Resources Ltd ("Aguia") (AGR.AX) to acquire 40,000,000 Aguia ordinary shares, representing a 15.7% interest in Aguia. The Company has also acquired a 1% net smelter return royalty ("NSR") on the Rio Grande project held by Aguia. The aggregate purchase price for the shares and NSR royalty is AUD$2 million.
As part of the agreement, Sulliden will receive a board seat at Aguia, and has the right to participate in any future equity offerings by Aguia in order to maintain its proportionate equity interest. Furthermore, Aguia has the option to buy-back the NSR royalty for AUD$1 million at any time for up to three years after the closing of the transaction.
Justin Reid , President and CEO of Sulliden Mining Capital, commented, "We believe this investment is a great opportunity for Sulliden. Our management has completed an extensive due diligence review of Aguia and the Rio Grande project, and we have great confidence in their team's ability to successfully advance this asset. Our board seat will allow us to take an active role in our investment by overseeing the execution of the project; and if needed, we also intend to offer support to Aguia's management as the project moves forward."
Sulliden is acquiring shares of Aguia for investment proposes. Other than the purchased shares, Sulliden has no current intention to increase the beneficial ownership of, or control or direction over, additional securities of Aguia.
About Aguia Resources Ltd.
Aguia is an exploration and development stage phosphate and potash company with a portfolio of projects located along the eastern coast of Brazil . The Company is primarily focused on the flagship Rio Grande phosphate deposit, located in Rio Grande Do Sul, Brazil's southernmost state. This established farming area currently imports 100% of its phosphate needs (~500,000 tpa P2O5) as there are no existing operating mines nearby. The Rio Grande project is a collection of four new phosphate discoveries, one of which has JORC compliant resource of 9.9 Mt at 5.03% P2O5 (Indicated category) and 20.6 Mt at 3.94 % P2O5 (including a higher grade oxide zone from surface of 1.8Mt @ 10.9% P2O5, with only 45% of the mapped strike length drilled to date. The site has excellent infrastructure, including roads, power, and railway links to the Rio Grande port (one of only two ports in Brazil with an acid terminal). For further information about Aguia, including details of the mineral resource estimate, please visit www.aguiaresources.com.au.
About Sulliden Mining Capital
Sulliden Mining Capital is a venture capital company focused on acquiring and advancing brownfield, development-stage and early production-stage mining projects in the Americas.
Sulliden Mining Capital Inc.
On behalf of the Board
"Justin Reid"
President & Chief Executive Officer
Cautionary statement regarding forward-looking information
This press release contains "forward looking information" within the meaning of applicable Canadian securities legislation. Forward looking information includes without limitation, statements regarding the acquisition of Aguia common shares and future intention, the prospective mineralization of any of Aguia's properties, and anticipated acquisitions. Generally, forward looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, geopolitical and social uncertainties; the actual results of current exploration activities; other risks of the mining industry and the risks described in the annual information form of the Company. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
SOURCE Sulliden Mining Capital