Discovery Signs US$12 Million Term Sheet for WillaMAX Project With Focus on Near Term Gold and Copper Production Repayment
18 Junio 2014 - 7:00AM
Marketwired
Discovery Signs US$12 Million Term Sheet for WillaMAX Project With
Focus on Near Term Gold and Copper Production Repayment
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jun 18, 2014) -
Discovery Ventures Inc. (TSX-VENTURE:DVN) ("Discovery") is pleased
to announce that it has signed a non-binding term sheet for a
US$12.1 million (the "Principal Amount") gold prepayment agreement
with a New York based financing firm (the "Facility"). The Facility
would bear interest at a rate of 9% per annum on funds advanced and
would be repaid by the delivery of 14,400 ounces of gold and 900
tons of copper over a maximum 36 month period starting no later
than the 19th month following the closing date. The Principal
Amount will be provided in two tranches with the first tranche of
$4.1 million provided at closing and the second tranche of $8.0
million to be funded no later than 12 months after closing, subject
to conditions precedent to be mutually agreed upon.
Proceeds from the Facility will be used to complete the
acquisition of FortyTwo Metals Inc. (including the MAX Mine,
existing permits, mill/concentrator and tax loss pools) and advance
and develop the WillaMAX Project in British Columbia to sustainable
production as outlined in Discovery's Preliminary Economic
Assessment (PEA) Report dated May 26, 2014.
Subject to satisfactory legal and technical due diligence, the
entry into of a definitive agreement, and the completion of
conditions to be contained in the definitive agreement, the
Facility is targeted to close by September 2014 and will be secured
by Discovery's assets. Discovery will enter an off-take agreement
for all production from the WillaMAX Project during the repayment
period.
The Facility was arranged by BayFront Capital Inc. and Discovery
anticipates paying a finder's fee of 5% in cash and in warrants of
any amount drawn through the Facility. Any agreement and the
issuance of all fees and shares shall be subject to the prior
approval of the TSX Venture Exchange.
Discovery also anticipates strategic restructuring of both its
management team and board of directors when the Facility agreement
closes. The changes are expected to add significant leadership,
technical expertise and experience to the senior management team to
maximize the consolidated value of the WillaMAX project.
Akash Patel, President & CEO commented, "Discovery
management is excited to attract a gold and copper loan type
financing to advance the WillaMAX Project through to near term
production. We believe that the agreement's repayment by way of
metal concentrates signals a very positive outlook of our project's
production potential."
Akash Patel, President and Director
Discovery Ventures Inc.
Neither the TSX Venture Exchange Inc. nor its Regulation
Service Provider (as that term is defined in the policies of the
TSX Venture Exchange Inc.) accepts responsibility for the adequacy
or accuracy of this press release.
This press release contains forward-looking information that
involve various risks and uncertainties regarding future events.
Such forward-looking information can include without limitation
statements based on current expectations involving a number of
risks and uncertainties and are not guarantees of future
performance of the Discovery, such as the terms of the financing in
the term sheet, the timing of the closing of the Facility and the
use of proceeds from the Facility. There are numerous risks and
uncertainties that could cause actual results and Discovery's plans
and objectives to differ materially from those expressed in the
forward-looking information, including: (i) adverse market
conditions; (ii) risks inherent in the mineral exploration industry
in general; (iii) inability of Discovery to complete any required
equity raises in connection with the debt Facility; (iv) the
inability of Discovery to enter into a definitive agreement with
the lender; or (v) the TSX Venture Exchange not approving the
Facility or any required equity financing. 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,
Discovery does not intend to update these forward-looking
statements.
Discovery Ventures Inc.(604)-818-1706Discovery Ventures
Inc.Investor Relations:Ron Birch(250)-545-0383Toll free:
1-800-910-7711
Discovery Ventures Inc. (TSXV:DVN)
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