Huakan International Provides Update on NSR Royalty Buyout on Greenwood Gold Project

Huakan International Mining Inc. (HK.V) has entered into an amended and restated letter agreement with Mineral Invest International MII AB, a Swedish-listed company, Gold Crown LLC and AMT Industries Canada Inc., Gold Crown's wholly owned subsidiary, to amend the terms of a letter agreement entered into by HK, Gold Crown and AMT on August 7, 2012 regarding HK's sale of the Greenwood Gold Project.

Pursuant to the terms of the Amended Agreement, Mineral Invest will guarantee the performance by Gold Crown and AMT of the following:

- pay an amount to the Company sufficient to replace the Company's reclamation bond on the Greenwood Gold Project which amount the Company shall pay to the Government of British Columbia in order to release the security (currently approximately $450,000) that was posted by the Company;

- cooperate with the Company to execute and deliver a Safekeeping Agreement with the Government of British Columbia, which relates to the reclamation security to be provided to the Government of British Columbia by Gold Crown and AMT;

- pay to the Company the amount of $4,000,000 which represents the balance of the purchase price for acquisition of the NSR; and

- pay a total of $400,000 in extension fees, consisting of a fee of $200,000 to extend certain deadlines under the third amendment (dated February 6, 2013) to the letter agreement dated August 7, 2012 among the Company, Gold Crown and AMT, and a fee of $200,000 to further extend such deadlines under the Amended Agreement.

- he Purchasers must complete all of the above by no later than 3 p.m. (Pacific Standard Time) on the earlier of June 10, 2013, and the date that is five business days after either Mineral Invest or Gold Crown complete a financing of at least $11,000,000.

- Despite the delay in receiving the full payment, the Company did receive $530,000 from the Purchasers in January and in addition to receiving $624,568 refund from the Canada Revenue Agency related to the 2011 Mineral and Exploration Tax Credit (METC) in March, there is sufficient cash on hand for the Company's general and administrative expenses and for advancing the J&L Gold Project metallurgy testwork planned for 2013.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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