Revolution Resources (RV-T) to sell Concepcion for $4-million (U.S.)
April 30, 2013 - News Release
Revolution Resources Corp. has entered into an agreement to sell the Concepcion property, totalling 117 hectares, to Minera Rio Tinto SA de CV for $4-million (U.S.). Concepcion is located within Revolution's 26,000-hectare Montana de Oro property in Sonora state, Mexico.
Revolution's focus in Mexico is gold, silver and copper. Given that the Concepcion property is primarily a zinc exploration property, it was deemed a non-core asset for Revolution.
"The sale of the Concepcion property to Minera Rio Tinto will provide the company with non-dilutive capital to advance additional deals within our Mexican project generator model," stated president and chief executive officer Aaron Keay. "We will continue our capital preservation plan in these challenging markets, while focusing our efforts on executing additional joint venture or property sale agreements."
Under the terms of the agreement, the sale price is payable to Revolution by Minera Rio Tinto as follows:
- A deposit of $200,000 (U.S.) that has been delivered into escrow and is refundable only in the limited circumstance described below;
- $800,000 (U.S.) at the closing of the sale, which is expected to be 60 to 90 days from this announcement;
- $1-million (U.S.) nine months after the closing date;
- $1-million (U.S.) 12 months after the closing date;
- $1-million (U.S.) 15 months after the closing date.
Completion of the transaction is subject to completion of the previously announced purchase by Revolution of Lake Shore Gold Corp.'s interests in the Mexico property portfolio (see Revolution news release dated Jan. 30, 2013), which includes the Concepcion property, and is also subject to a 60-day due diligence period. The $200,000 (U.S.) deposit referred to above was paid into escrow on signing and will be released to Revolution unless the transaction with Lake Shore Gold does not complete. The Lake Shore Gold transaction is expected to close early in May.
About Concepcion
Concepcion, totalling 117 hectares, is a replacement massive sulphide/breccia zinc-copper-silver-gold system. The mineralized zone, as it has been drill delineated to date, is approximately 200 metres by 100 m, though offset by faulting. Historical drilling highlights include: 31.16 m of 6.7 per cent Zn, 0.94 per cent Cu, 51.48 grams per tonne Ag and 0.80 g/t Au; 8.18 m of 11.06 per cent Zn, 0.81 per cent Cu, 20.65 g/t Ag and 0.18 g/t Au; and 15.45 m of 5.96 per cent Zn, 0.49 per cent Cu, 25.49 g/t Ag and 0.54 g/t Au.
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