Toronto, ON / March 24 2014 / Chilean Metals Inc. ("Chilean Metals" or the "Company") (TSX.V:CMX), is pleased to announce that it has closed the sale of the Company's Copaquire project through its wholly owned Chilean subsidiary, Minera IPBX Ltda. ("IPBX") to Teck Resources Chile Ltda. ("Teck"), a subsidiary of Teck Resources Limited. The consideration received for the sale of Copaquire is US$3,033,556 cash plus a 3% net smelter royalty (NSR) payable to IPBX as and when resources from the property are processed. Additionally, Teck will have the option to buy back 1% of the NSR for US$3 million at any time.
"We are glad to finally close this transaction and we look forward to our new future with a clean balance sheet and a focus on realizing value from our extensive historic Chilean land position. We had some very positive discussions at PDAC and sense that the Industry has bottomed out and from here we can rebuild and position ourselves for a brighter future," commented Terry Lynch CEO of Chilean Metals. "Our immediate next step is to continue to explore our 100% owned Tierra De Oro ("TDO") property. Historically we have spent over $5 million on exploring numerous gold veins on the property, but not on exploration for more economically-significant IOCG (iron oxide-copper-gold) deposits. VP Exploration Chris Hodgson, has reviewed previous exploration data and identified three large, untested and near-surface IOCG targets on TDO. Discussions are ongoing with potential joint venture partners on a farm-out deal that we expect will lead to additional drilling on the project later this year".
In addition, the Company announces it has extended and re-priced all outstanding warrants subject to TSX Venture Exchange approval. Total outstanding warrants of 2,151,758 (post consolidation) now have an expiry date of August 31, 2014 and have a re-priced post consolidation exercise price of $0.25. Please refer to the following table which outlines in detail each of the warrant tranches outstanding and the effect of the amendments to each tranche.
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Terry Lynch commented, "We had contemplated this with the extensions announced in December and January but could not finalize our strategy of this until after stock was consolidated. We believe this positioning will provide an exercise price that we feel will prove valuable in the not too distant future and it dovetails with our plans on funding as we move forward with building Chilean Metals Inc."
Chilean Metals Inc. owns six 100%-owned properties comprising over 50,000 acres strategically located in the prolific IOCG ("Iron oxide-copper-gold") belt of Chile. Three of these projects are under review by third parties for possible purchase or joint venture.
ON BEHALF OF THE BOARD OF DIRECTORS OF
Chilean Metals Inc.
Terry Lynch, CEO
Forward-looking Statements: This news release may contain certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical fact, that address events or developments that CMX expects to occur, are forward looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Forward-looking statements in this document include statements regarding current and future exploration programs, activities and results. Although CMX believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration success, continued availability of capital and financing, inability to obtain required regulatory or governmental approvals and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward looking statements.
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 release.
Release ID: 37644