Anyone still in this gismo?
Americas Bullion Royalty Lender Indicates Intention to Exercise Royalty Purchase Option for US$35 Million Using Default Provision
06:00 EDT Monday, June 24, 2013
TSX:AMB
www.aubullion.com
HAYDEN, ID, June 24, 2013 /CNW/ - Americas Bullion Royalty Corp. (TSX: AMB) announces that MF Investment Holding Company 1 (Cayman) Limited, part of the Red Kite Group, has indicated that it has or intends on issuing notices alleging an Event of Default under the secured facility agreement dated September 25, 2012 (the "Facility Agreement") and asserting rights to exercise an option to purchase twenty-six royalty interests including the Pan and Bald Mountain interests by paying Americas Bullion US$35,000,000 in cash as set forth in section 7.6 of the Facility Agreement. Americas Bullion rejects that any Event of Default has occurred under the Facility Agreement, asserts that no valid and effective notice has been issued upon it as required by the Facility Agreement and has engaged legal counsel to challenge the recent conduct of MF Investments.
Americas Bullion Royalty Corp.
Americas Bullion Royalty Corp. focuses on acquiring precious metal royalties and streaming assets which provide revenue as well as lower risk exposure to shareholders through project diversity in stable, mining-friendly jurisdictions. The Company's existing portfolio is highlighted by Gross in-kind Royalties on Midway Gold's Pan and Gold Rock deposits, as well as 2 separate royalties encompassing more than 34 square miles at Barrick Gold's Bald Mountain project in Nevada.
The Company holds additional royalties including Net Smelter Return Royalties on the Taylor Silver project and a portion of the Tonkin Springs project also in Nevada. The Company's royalty holdings comprise more than 100,000 acres located primarily in Nevada, with 7 of the projects located in Wyoming, Oregon, California and Mexico. Current royalty revenue is expected to accelerate as early as 2014 as several of these projects commence production. Americas Bullion Royalty Corp.'s prime royalty portfolio is unique in the mineral royalty industry due to its ability to receive the majority of projected revenues in-kind (gold bullion as opposed to cash), its concentration of gross royalties with no exposure to operator cost, as well as its security of title with no buyback or buyout provisions. The Company continues to advance or monetize other assets including its significant Yukon property holdings, security holdings and the Taylor Mill in Nevada. |
