OAKVILLE, ON, Oct. 21, 2014 /CNW/ - Canoe Mining Ventures Corp.
(TSXV: CLV) ("Canoe") has completed a settlement agreement
(the "Agreement") with Alto Ventures Ltd. ("Alto")
whereby upon satisfying the terms and conditions set out in the
Agreement a debenture held by Alto charging a 40% interest in
Canoe's Coldstream Property will be discharged resulting in Canoe
holding an unencumbered 100% interest in the Coldstream Property
located in the Shebandowan Belt in Ontario.
Duane Parnham, President and CEO
of Canoe, stated: "We have executed an agreement with Alto which
settles the debenture at a reduced price and provides Canoe with
full unencumbered ownership of the Coldstream Property. Canoe will
now realize the full benefits of any exploration success and is
well-positioned to carry out its planned exploration programs
targeted at expanding the compliant copper and gold deposits on the
Coldstream Property and extending a gold trend on the southern
portion of the Coldstream Property that borders Wesdome Gold Mines
Ltd.'s Moss Lake gold deposit."
By way of a background to the Agreement, Canoe acquired Birch
Hill Gold Inc. ("Birch Hill") on March 26, 2014, whereby Birch Hill owed a debt to Alto in the amount
of $768,942 (the "Debt") which
was secured by way of a debenture that charged a 40% interest in
the Coldstream Property. The Agreement represents the full and
final satisfaction of the Debt owing to Alto. Pursuant to the terms
of the Agreement and subject to the approval of all required
regulatory approval, including that of the TSX Venture Exchange
Inc., Canoe will issue a deemed value of $250,000 in shares of Canoe priced at the 10 day
weighted average closing price of Canoe on October 20, 2014 and has agreed to pay Alto
$50,000 immediately with an
additional $200,000 payable in 3
instalments between December 31, 2014
and June 30, 2015. Canoe has granted
Alto net smelter returns royalties ranging from 0.5% to 1.5% on
certain portions of the Coldstream Property.
Canoe has the first right to arrange for the purchase of any of
the common shares issued to Alto in connection with the Agreement.
In the event that Alto wishes to dispose of any portion of their
common shares of Canoe they must notify Canoe in writing, after
which Canoe will have five business days to repurchase or arrange
for the repurchase of these shares.
Additional information and corporate documents may be found on
www.sedar.com and on the Canoe Mining website:
www.canoemining.com.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this news release.
On Behalf of the Board of Directors of Canoe Mining,
Duane Parnham, President and CEO
SOURCE Canoe Mining Ventures Corp.
