Updated: 2013-06-19 - 15:27:00
UC Resources Symbol: UC.V
VANCOUVER, BRITISH COLUMBIA, January 06, 2012 (MARKETWIRE via COMTEX) -
UC Resources Ltd. ("UC" or the “Company”) is pleased to announce that it received final approval on the sale of its interest in the McFaulds Lake area property from the TSX Venture Exchange on January 4, 2012 and closed the sale on January 6, 2012. In its letter to UC, the TSX Venture Exchange further advised that a bulletin will be issued upon notification from the Company of the closing of the transaction on January 6, 2012.
On November 10, 2011, UC Resources announced that it had entered into a definitive agreement (the “Purchase Agreement”) with Freewest Resources Inc. (“Freewest”), a wholly owned subsidiary of Cliffs Natural Resources Inc. (NYSE: CLF) (Paris: CLF) (“Cliffs”), for Freewest to acquire 100% of the UC owned 55% Joint Venture Interest in the McFaulds Lake area property (the “Joint Venture Interest”), subject to and in accordance with the Joint Venture Agreement dated as of July 26, 2011 (the “Joint Venture Agreement”) between KWG Resources Inc. (“KWG”), Cliffs Chromite Far North Inc. (f/k/a Spider Resources Inc.), a wholly owned subsidiary of Cliffs, and UC Resources.
On November 11, 2011, UC received notice from Cliffs Chromite Far North Inc. electing to exercise its pre-emptive right in accordance with the Joint Venture Agreement to acquire the Joint Venture Interest from UC for the same consideration and on the same terms as set forth in the Purchase Agreement.
UC did not receive a pre-emptive rights exercise notice from KWG within the time period required by the Joint Venture Agreement, which resulted in Cliffs Chromite Far North Inc. obtaining from Freewest the rights under the Purchase Agreement to acquire 100% of UC’s 55% Joint Venture Interest.
Following Cliffs Chromite Far North Inc.’s acquisition of UC’s 55% Joint Venture Interest, Cliffs Chromite Far North Inc. holds approximately 80% and KWG holds approximately 20% of the McFaulds Lake area property under the Joint Venture Agreement.
Under the Purchase Agreement, the purchase price payable to UC was $6,000,000 CDN ($6 Million), payable by deposit of $850,000 on the signing date followed by the balance on the closing date. The deposit amount of $850,000 was received by the Company from Freewest on November 9, 2011, and, because of the pre-emptive right exercised by Cliffs Chromite Far North Inc., the balance of $5,150,000 was received by the Company from Cliffs Chromite Far North Inc. on January 6, 2012. The transaction is now closed.
The Company has notified the TSX Venture Exchange of the transaction closing for the bulletin to be issued.
UC Resources is an active explorer and producer of precious metals in Mexico.
Mexico is one of the world’s largest silver and gold producers. UC Resources is advancing in Mexico to acquire an asset base of high quality silver and gold production assets with significant upside on their exploration potential. UC Resources plans to acquire quick turnaround to production assets, consisting of previous producing mines or tailings deposits, which can be rehabilitated and entered into production in reasonable time frames.
On behalf of the Board of Directors,
Gary Monaghan, CEO
We seek safe harbour.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Investors or interested parties are invited to visit the UC Resources Website at http://www.ucresources.net where they can choose to join the opt in e-mail list to receive all future press releases and updates in real time.
This news release includes certain forward-looking statements or information. All statements other than statements of historical fact included in this release, including, without limitation, statements relating to the terms of the Purchase Agreement and other future plans, objectives or expectations of the Company are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's plans or expectations include risks relating to general economic, market or business conditions, regulatory changes, timeliness of government or regulatory approvals and other risks detailed herein and from time to time in the filings made by the Company with securities regulators. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation.
UC Resources Ltd.
Mr. Gary Monaghan