April 3, 2017
Silver Predator Corp. Announces Option Agreement with Montego Resources, Inc.
Toronto, Ontario, April 3, 2017: Silver Predator Corp. (TSX.V: SPD) (the “Company” or “Silver Predator”) announces that it has entered into an option agreement (the “Agreement”) with Montego Resources, Inc. (CSE: MY) (“Montego”) pursuant to which Montego has the right to acquire from the Company certain mining claims located in White Pine County in the State of Nevada commonly referred to as the “Taylor Silver Property” (the “Property”).
Under the terms of the Agreement, Montego can acquire the Property in consideration for the completion of a series of cash payments totaling US$1,200,000, issuing 2,500,000 common shares to Silver Predator, and incurring expenditures of at least US$700,000 on the Property. Upon completion of the payments, share issuances and expenditures, Montego will hold a one-hundred percent interest in the Property, subject to a two-percent net smelter returns royalty and a one-percent net profit royalty which will be retained by the Company.
The payments, share issuances and expenditures must be completed in accordance with the following schedule:
At Closing: US$200,000 cash and 500,000 common shares
6 months from Closing: US$100,000 cash and 300,000 common shares
12 months from Closing: US$200,000 cash, 400,000 common shares and expenditures of US$100,000
24 months from Closing: US$300,000 cash, 500,000 common shares and expenditures of US$250,000
36 months from Closing: US$400,000 cash, 800,000 common shares and expenditures of US$350,000
Completion of the transaction with Montego remains subject to the satisfaction of a number of conditions, including the approval of the TSX Venture Exchange on behalf of the Company, the completion of filings with the Canadian Securities Exchange by Montego, and certain other closing conditions as are customary in transactions of this nature. There can be no assurance that these outstanding conditions will be satisfied. The Company will provide further information in respect of the transaction as soon as it is available.
“This option agreement is a major step in the Company’s goal of improving the liquidity of our balance sheet to enable us to seek new exploration projects,” said Dr. John T. (“Terry”) Rickard, Chief Executive Officer of Silver Predator. “We are delighted to have Montego Resources as a partner in this transaction.”
Silver Predator Corp.
The Company holds the Taylor silver-gold project in Nevada. The Taylor project hosts a current measured and indicated silver resource estimate of 16.8 million ounces of silver at an average grade of 1.89 ounces per ton and an inferred resource of 3.9 million silver ounces at 2.30 ounces per ton (1), is open to expansion, and is in a district that has identified the potential for discovery of additional silver and gold deposits. The company also holds additional early stage exploration properties in Nevada and the Silver Valley of Idaho.
Mr. Michael Maslowski, CPG, a Qualified Person as defined by National Instrument 43-101 and a consultant for the Company, has reviewed, verified and approved disclosure of the technical information contained in this news release
For additional information:
Nathan A. Tewalt
John T. Rickard
Chief Executive Officer
1) National Instrument 43-101 Technical Report; NI 43-101 of the Taylor Silver Project, White Pine County, Nevada, USA by Thomas H. Chadwick, Dean D. Turner, and Patrick J. Hollenbeck dated March 18, 2013 filed on SEDAR.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
This press release contains forward-looking statements regarding future events, including the ability of the Company to successfully conclude the proposed sale of assets and to meet future payment obligations under the notes. There are numerous risks and uncertainties that could cause actual results and Silver Predators’ plans and objectives to differ materially from those expressed in the forward-looking statements. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, Silver Predator assumes no obligation to update forward-looking information should circumstances or management’s estimates or opinions change