Quia Announces Sale of San Lucas Gold Property
19 Juin 2014 - 8:00PM
Marketwired
Quia Announces Sale of San Lucas Gold Property
TORONTO, ONTARIO--(Marketwired - Jun 19, 2014) - Quia Resources
Inc. ("Quia" or the "Company") (TSX-VENTURE:QIA) announces that it
has entered into an agreement with Enneract Corporation
("Enneract"), a private Panamanian company, to sell its subsidiary,
San Lucas Gold Corp, which holds the San Lucas gold property in
Colombia, subject to approval of the TSX Venture Exchange. The
transaction is an arm's-length transaction and no finder's fee is
payable in connection with the agreement. A former director of Quia
has an interest in Enneract.
Under the terms of the agreement, Quia will receive a number of
common shares resulting in an equity ownership of 5% of Enneract,
as well as a 2% net smelter return royalty (the "Royalty"), of
which Enneract can buy back half for US $500,000. In addition, Quia
has a right to participate in financings of Enneract to maintain
its pro-rata position and a right of first refusal with respect to
the sale or joint-venture of the property. The sale will result in
a reduction in the Company's liabilities as of March 31, 2014 by
$397,778.87. The purchaser of the subsidiary is acquiring the
subsidiary including its liabilities, and therefore those
liabilities will no longer be the obligation of Quia and will no
longer be part of the Company's consolidated financial
statements.
Mr. Banks, Quia's CEO, commented: "Conditions in Colombia and in
the financial markets have made it challenging to continue to
advance the San Lucas project. The sale significantly improves our
balance sheet, allows us to further streamline our operation, and
enables us to focus on our agromineral strategy which is rapidly
developing. We also maintain exposure to the upside potential of
San Lucas through our equity ownership in Enneract, the Royalty and
our other rights."
Debenture Closing
The Company has received all required approvals for the closing
of the first tranche of its secured convertible debenture financing
as described in its press release dated June 4, 2014, and the
closing of the first tranche in the amount of $340,286.30 has been
completed.
Investor Relations Agreement
The Company has engaged Investor Cubed to provide the following
services:
(a) manage communications with investors, brokers and other
investment professionals; (b) organize and attend meetings with
investment dealers and investment advisors to present the Company
and help to develop relationships on the Company's behalf; (c)
contact investment advisors by telephone to generate awareness; (d)
distribute the Company's news releases to its database; (e) make
recommendations about the strategy, content and design of the
Company's investor presentation materials; (f) make recommendations
about the content, design and functionality of the investor
relations segment of the Company's website; (g) assist with
financing opportunities; and (h) provide general consulting on
investor communications and capital markets.
The term of the agreement will be for a period of 12 months
commencing June 17, 2014 (the "Commencement Date") and expiring on
June 16, 2015, subject to the right of the Company to terminate the
agreement on 30 days notice after December 16, 2014. The Company
will pay a fee of $5,000 per month and issue 150,000 stock options
to Investor Cubed. Each option will be exercisable to purchase one
common share of the Company. Subject to the options being issued
under the terms and conditions of the Company's stock option plan,
the options will be issued quarterly in four tranches of 37,500
each with the first tranche being issued as of the Commencement
Date, and with the exercise price per share for the options being
set at $0.10. This agreement is subject to the approval of the TSX
Venture Exchange.
About Quia Resources Inc.
Quia Resources is a mineral exploration and development company
that is focused on agrominerals, including the Murdock Mountain
direct application phosphate project in Nevada. The Company is also
actively evaluating additional business opportunities in the
agricultural sector.
Forward-Looking Statements
This press release contains or refers to forward-looking
information based on current expectations that involve a number of
business risks and uncertainties. Factors that could cause actual
results to differ materially from any forward-looking statement
include, but are not limited to, delays in obtaining or failures to
obtain required governmental, environmental or other project
approvals, political risks, uncertainties relating to the
availability and costs of financing needed in the future, changes
in equity markets, inflation, changes in exchange rates,
fluctuations in commodity prices, delays in the development of
projects and the other risks involved in the mineral exploration
and development industry. Forward-looking statements are subject to
significant risks and uncertainties, and other factors that could
cause actual results to differ materially from expected results.
Readers should not place undue reliance on forward-looking
statements. These forward-looking statements are made as of the
date hereof and the Company assumes no responsibility to update
them or revise them to reflect new events or circumstances other
than as required by law.
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.
Quia Resources Inc.Yannis BanksChief Executive Officer(416)
777-6169ybanks@foundationmarkets.com
Quia Resources Inc. (TSXV:QIA)
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