News: Alexandria Announces Binding LOI to Sell Royalty Interests on Cadillac Break Property Group in Val d'Or, QuebecprintFont size A A A
12:34 PM ET 4/1/19 | GlobeNewswire
Alexandria Announces Binding LOI to Sell Royalty Interests on Cadillac Break Property Group in Val d'Or, Quebec
TORONTO, April 01, 2019 (GLOBE NEWSWIRE) -- Alexandria Minerals Corporation (TSX-V:AZX) (OTCQB:ALXDF) (Frankfurt:A9D) ("AZX" or the "Company") is pleased to announce that it has entered into a binding letter of intent (the "LOI") to sell certain royalty interests on the Company's Cadillac Break Property Group in Val d'Or, Quebec to an arm's length third party for a cash purchase price of $801,000. The applicable royalty interests consist of a one percent (1%) net smelter return royalty on production from the Cadillac Break properties and the Company's interest in certain royalty buy-back proceeds that the Company may receive in relation to an existing 2% net smelter return royalty held by another third party. Pursuant to the LOI, the Company received $150,000 as a deposit on the signing of the LOI, which will be credited against the purchase price at the closing of the transaction. In the event that the closing does not occur, other than by reason of default or breach hereof attributable to the Company, the deposit shall be retained by the Company.
The LOI contemplates the parties entering into a royalty agreement and a purchase agreement by April 6, 2019, as well as other related assignment and security agreements on closing, to complete the sale of the applicable royalty interests. The LOI also contains additional terms and conditions that must be satisfied or waived prior to the completion of the sale of the applicable royalty interests, including that the sale of the royalty interests is to be completed on April 26, 2019, unless otherwise agreed by the parties.
"This transaction is consistent with our stated strategy of selling non-core assets to fund on a non-dilutive basis, the Company's on-going corporative objectives," commented Walter Henry, Acting President and CEO of the Company.
The proceeds from the sale of the royalty interests will be used to fund working capital and to pursue the Company's ongoing exploration program on its Cadillac Break properties in Quebec.
Next Steps
Company planned activities for the next fiscal quarter include the following:
1) The monetization of current assets and the continued selling of non-core assets;
2) The ongoing evaluation of the strategic opportunities currently presented to the Company;
3) The evaluation of acquiring additional strategic land positions that are proximate to the Company's existing core land package; and finally
4) to continue processing approximately 1000 samples of drill core currently held for assay at laboratories from the 2018 winter drilling campaign at the Bulldog Zone and Centremaque, as well as holes from the western extensions of the Cadillac Break properties.
