Hasbrouck and Three Hills sales completed
$20 million more cash for ANV's coffers ...
Original news release of deal
web.tmxmoney.com
Today's announcement of the closing of the deal.
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West Kirkland Completes Acquisition of Hasbrouck and Three Hills Properties from Allied Nevada
VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 23, 2014) - Further to its press release of January 27, 2014, West Kirkland Mining Inc. (TSX VENTURE:WKM) ("West Kirkland", "WKM" or the "Company") is pleased to announce that its subsidiary, WK Mining (USA) Ltd. ("WK Mining (USA)"), has completed its acquisition of an initial 75% interest in the Hasbrouck and Three Hills properties (the "Properties") for US$20,000,000 from subsidiaries of Allied Nevada Corp. (TSX:ANV) ("Allied Nevada" or "ANV").
WK Mining (USA) paid total consideration of US$20,000,000 to Allied Nevada for a 75% interest in the Properties. The Properties contain near surface oxidized gold resources and are located close to infrastructure for potential future mining operations.
Sandy McVey Chief Operating Officer of West Kirkland said, "After evaluating nearly 250 properties worldwide under strict criteria we are pleased to have acquired the Properties and completed this transaction. With the support of our institutional shareholders West Kirkland can begin the work needed to bring these assets towards permitting and a construction decision."
On February 24, 2014 West Kirkland filed on SEDAR a National Instrument 43-101 Standards of Disclosure for Mineral Projects("NI 43-101") compliant technical report on the Properties (the "Report") titled "Technical Report for the Hasbrouck Project, Esmeralda County, Nevada, USA". The Report was filed following the Company's February 24, 2014 news release which announced a revised resource estimate for the Properties as follows:
| HASBROUCK & THREE HILLS (0.005 opt AuEq Cutoff) | Category
| Tons
(000 tons) | Gold
opt | Silver
opt | AuEq
opt | Gold
(000
oz) | Silver
(000
oz) | AuEq
(000
oz) | | Measured | 15,777 | 0.015 | 0.286 | 0.020 | 231 | 4,509 | 310 | | Indicated | 62,415 | 0.012 | 0.219 | 0.016 | 731 | 13,640 | 970 | | Measured & Indicated | 78,192 | 0.012 | 0.232 | 0.016 | 962 | 18,149 | 1,279 | | | | | | | | | | | Inferred | 69,923 | 0.008 | 0.159 | 0.011 | 566 | 11,136 | 761 | | AuEq calculated AuEq= Au + (Ag/57.14) | | |
Notes:
CIM definitions are followed for classification of Mineral ResourcesMineral Resources are estimated using a gold price of US$1,200 per ounce and a silver price of US$21 per ounceTotals may not represent the sum of the parts due to rounding.The Mineral Resources have been prepared by Scott E. Wilson in conformity with CIM "Estimation of Mineral Resource and Mineral Reserves Best Practices" guidelines and are reported in accordance with the Canadian Securities Administrators NI43-101. Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the mineral resource will be converted into mineral reserve.The Report, dated effective February 21, 2014, was prepared in conformance with NI 43-101 by Mr. Scott E. Wilson, AIPG Certified Professional Geologist, who is WKM's Independent Qualified Person as defined under NI 43-101. A copy of the Report can be found at www.sedar.com and on the Company's website.
Acquisition Details
WK Mining (USA) has finalized and executed a Purchase and Sale Agreement (the "PSA") with Allied Nevada to acquire the Properties. WK Mining (USA) has paid both the deposit and initial payment with total consideration having been paid to Allied Nevada being US$20,000,000. Title to the Properties has been transferred to WK Mining (USA).
Pursuant to the PSA, WK Mining (USA) has the option of making an additional US$10,000,000 payment (the "Final Payment") on or before October 23, 2016 (the "Final Payment Deadline"). If WK Mining (USA) pays the Final Payment to ANV in accordance with the terms and conditions of the PSA, it will acquire the remaining 25% interest in the Properties and own a 100% interest in the Properties.
If WK Mining (USA) does not make the Final Payment to ANV on or before the Final Payment Deadline, or if WK Mining (USA) offers payment and ANV chooses to decline the Final Payment, the Properties shall be transferred into a joint venture (the "Joint Venture") with WK Mining (USA) retaining a 75% interest in the Joint Venture and ANV retaining 25% interest in the Joint Venture. Upon entering the Joint Venture both parties will be responsible for their share of the costs on a pro rata basis with Allied Nevada's share of the costs accruing and payable in full 30 months after the formation of the joint venture.
Go Forward Plans
WK Mining (USA) intends to advance the Properties to a Pre-Feasibility study and initiate permitting. As part of this work, WK Mining (USA) will complete exploration and condemnation drilling, geotechnical and hydrological investigations and metallurgical studies on the Properties.
Qualified Persons
Mr. Scott E. Wilson, AIPG Certified Professional Geologist, is WKM's Independent Qualified Person as defined under NI 43-101. He has recently visited the Properties and has read and approved the technical information in this news release. Mr. Wilson has reviewed and verified the data disclosed in this news release to be in conformity with generally accepted CIM "Estimation of Mineral Resource and Mineral Reserves Best Practices" guidelines and in accordance with NI 43-101.
Michael G. Allen, Vice President of Exploration for WKM, and a Qualified Person as defined by NI 43-101, has reviewed the information contained in this news release. He is the non-independent qualified person for this new release and has verified the data.
About West Kirkland Mining Inc.
West Kirkland was formed in 2010 to focus on gold exploration along major geological trends in North America. The Company has consolidated significant mineral rights positions within the Long Canyon Trend of Nevada/Utah. The founders and Board members of West Kirkland have successful experience in gold discovery, mine development and mine operations in Nevada and other gold producing jurisdictions in North America.
For further information, please see contact us by email at info@wkmining.com.
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