Montero Announces Sale of Subsidiary for CDN$1.2 million and a 1% Royalty
27 June 2019 - 1:21AM
Montero Mining and Exploration Ltd. (TSX-V: MON or “Montero”) has
signed a Letter of Intent (“LOI”) with Australian registered
Cheetah Resources Pty Ltd (“Cheetah”) to purchase 100% of its
British Virgin Island subsidiary company holding its rare earth
Intellectual Property (“IP”). Montero previously held a Retention
License (“Licenses”) over the Wigu Hill deposit. Changes made in
2017 to the 2010 Mining Act resulted in the Retention Licence
classification being abolished and ownership transferred to the
Government of Tanzania. Montero has applied for a Mining License
over the area once covered by the Retention License.
Cheetah paid Montero a non-refundable
CDN$100,000 fee on signature of the LOI to acquire the rare earth
IP rights to the Wigu Hill deposit. Cheetah will initially fund a
CDN$500,000 development program over 6 months to complete a legal
and technical due diligence of the IP. Cheetah will have an option
to acquire all Montero’s equity interest for CDN$1.1 million in
Wigu Hill (BVI) Ltd. after which Cheetah will grant and register a
1% net smelter return royalty payable to Montero on any production
from the IP and Licenses awarded. Should Cheetah decide at any time
not to proceed then all the IP will revert to Montero. The final
agreement is also subject to Montero receiving regulatory approval
if required.
Dr. Tony Harwood, President and Chief Executive
Officer of Montero commented, “Montero has elected to sell its rare
earth intellectual property and assets for CDN$1,200,000 and retain
a 1% net smelter return royalty on any future production. Cheetah
Resources is a rare earth resource company and focussed on funding
and advancing rare earth projects. The transaction will allow
Montero to focus on advancing our lithium projects in Namibia and
Chile.”
Cheetah is an Australian special purpose vehicle
company established to focus on the fast-track development of rare
earth and other specialty metal projects.
About MonteroMontero has
acquired the Soris lithium-tantalum-tin Project and optioned the
UIS lithium-tin tailings Project in Namibia in order to prove up a
significant Lithium resources with tin and tantalum credits. The
Company has also made a lithium discovery in the Atacama region of
northern Chile. Lithium is a critical battery metal. Montero’s
focus is to advance its Namibian assets while seeking partners to
advance the balance of its assets. Montero trades on the TSX
Venture Exchange under the symbol MON.
For more information, contact:
Montero Mining and Exploration Ltd. Dr.
Tony Harwood, President and Chief Executive OfficerE-mail:
ir@monteromining.com Tel: +1 416 840 9197 | Fax: +1 866 688
4671. | www.monteromining.com
Neither 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 release.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
INFORMATION: This news release includes certain "forward-looking
information" within the meaning of applicable Canadian securities
laws. Forward-looking information includes, but is not limited to,
statements, projections and estimates. Generally, forward-looking
information can be identified by the use of forward-looking
terminology such as “plans”, “expects” or “does not expect”, “is
expected”, “budget”, “scheduled”, “estimates”, “forecasts”,
“intends”, “anticipates” or “does not anticipate”, or “believes”,
or variations of such words and phrases or state that certain
actions, events or results “may”, “could”, “would”, “might” or
“will be taken”, “occur” or “be achieved”. Such information is
based on information currently available to Montero and Montero
provides no assurance that actual results will meet management's
expectations. Forward-looking information by its very nature
involves inherent risks and uncertainties that may cause the actual
results, level of activity, performance, or achievements of Montero
to be materially different from those expressed or implied by such
forward-looking information. Actual results relating to, among
other things, results of exploration, project development,
reclamation and capital costs of Montero’s mineral properties, and
financial condition and prospects, could differ materially from
those currently anticipated in such statements for many reasons
such as: changes in general economic conditions and conditions in
the financial markets; changes in demand and prices for minerals;
litigation, legislative, environmental and other judicial,
regulatory, political and competitive developments; technological
and operational difficulties encountered in connection with
Montero’s activities; and other matters discussed in this news
release and in filings made with securities regulators. This list
is not exhaustive of the factors that may affect any of Montero’s
forward-looking statements. These and other factors should be
considered carefully and accordingly, readers should not place
undue reliance on forward-looking information. Montero does not
undertake to update any forward-looking information, except in
accordance with applicable securities laws.
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