|2014-02-12 07:55 ET - News Release|
Mr. Chris Robbins reports
ANGLO SWISS REACHES AN AGREEMENT IN PRINCIPLE TO ACQUIRE GOLD EXPLORATION PROPERTIES IN SWEDEN
Anglo Swiss Resources Inc. has reached an agreement in principle to acquire a private Ontario company, Gungnir Resources Inc., and all of its exploration properties in northern Sweden. The properties cover approximately 22,500 hectares (or 225 square kilometres) within a highly underexplored and prospective area known as the gold line in the Skellefte mining district of Sweden. The region hosts more than 12 million ounces of gold delineated in existing and mined resources plus several producing and past-producing VMS base metal mines.
"This is an exceptional opportunity for the company moving forward," stated Chris Robbins, Anglo Swiss's vice-president. "The acquisition combines a huge exploration land package, targeting expertise and turnkey entry into a new country. We are very excited to begin exploration in Sweden."
Sweden is a leading miner and major gold, silver, copper and iron ore producer in the European Union and globally ranks second in a 2012 Fraser Institute survey for most attractive jurisdictions for mineral exploration and development. Sweden offers great infrastructure for exploration and excellent potential for new discoveries particularly under the extensive but thin layer of glacial till that masks bedrock over large areas of Sweden.
The Gungnir properties consist of the Nordanas and Knaften projects located along the southeastern extension of the gold line. The main target is intrusion-related gold mineralization, an attractive but underexplored deposit type. Examples of this type of gold deposit include the Pogo, Fort Knox mine, and Donlin in Yukon/Alaska, and Bjorkdal in Sweden which recently produced its millionth ounce of gold. Initial prospecting by Gungnir Resources has identified large clusters of anomalous gold and important pathfinder elements in locally derived boulders and in outcrop. No drilling is reported on either property in the Swedish Geological Survey archived drill hole database. A $200,000 minimum exploration budget is proposed for 2014.
The consideration to be paid is $300,000 (to cover land acquisition costs and exploration expenditures to date), issuing 32,586,512 shares of Anglo Swiss, representing a 15-per-cent equity interest in Anglo Swiss after giving effect to the acquisition, and the retention of a 2.4-per-cent net smelter royalty (NSR) by three of the shareholders of Gungnir with a buyout option of 50 per cent on the NSR for $1-million. Closing is expected by no later than May 30, 2014, or such other date agreed to by all parties.
Jari Paakki, chief executive officer of Anglo Swiss, is a minority investor in Gungnir and will be issued $30,000 cash, 6,517,303 shares of Anglo Swiss and a one-third interest in the NSR on closing. The insider consideration issuable to Mr. Paakki is exempt from the valuation and minority shareholder approval requirements of Multilateral Instrument 61-101 by virtue of the exemptions contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 in that the fair market value of the insider consideration to be issued to Mr. Paakki does not exceed 25 per cent of the company's market capitalization. Disinterested shareholder approval to the issuance of the insider consideration will be sought at the annual and special meeting of the company to be held in Toronto on March 28, 2014.
Completion of the transaction is subject to execution of a formal agreement and a number of conditions, including, but not limited to, financing of at least $500,000, confirmatory due diligence, the receipt of all required regulatory approvals, including the approval of the TSX Venture Exchange, and approval of the shareholders of Anglo Swiss.
Jari Paakki, PGeo, chief executive officer of Anglo Swiss, is the qualified person as defined by National Instrument 43-101 and has reviewed and approved the technical information in this news release.
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