VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 3, 2017) -
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.
Redzone Resources Ltd. ("Redzone" or the "Company") (TSX VENTURE:REZ) is pleased to announce that it has entered into an option agreement ("Option Agreement") with two vendors (the "Vendors") providing for the grant to the Company of an option to acquire a 100% interest in the Lucky Mica Claim Group (the "Property") located approximately eight miles south west of the city of Wickenburg in Maricopa County, Arizona.
The claims cover the "Fortner and Boyd Lithium Deposit" recorded as such by the USGS (United States Geological Survey) as Deposit 10064183 and catalogued as MRDS (Mineral Resources Data System) ID TC38458.
Option Agreement Terms
The original terms of the option were announced by the Company in a news release dated August 2, 2016 ("2016 NR") pursuant to a binding letter agreement which the Option Agreement supersedes and replaces. Further information about the Property is described in the 2016 NR available on the Company's issuer profile on SEDAR at www.sedar.com.
Under the terms of the Option Agreement, the Company has the option to acquire a 100% interest in the Property by making the following cash payments and share issuances:
1. cash payment of US$47,500, which has been fully paid as at the date
2. Issuance of 300,000 common shares in the capital of the Company (the
"Shares") of which 200,000 Shares has been issued.
Under the terms of the Option Agreement, the Company will pay a 0.667% net smelter return royalty (the "NSR") to the Vendors on all minerals produced, mined or otherwise recovered from the Property. The Company will have the right, at any time, to purchase 100% of the NSR for C$1,000,000.
One of the Vendors, Alan Matthews, is a non-arm's length party to the Company by virtue of being a director of the Company. The entering into of the Option Agreement was considered a "related party transaction" pursuant to Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company was exempt from the requirements to obtain a formal valuation or minority shareholder approval in connection with Mr. Matthew's participation in the transaction in reliance of sections 5.5(b) and 5.7(a) of MI 61-101.
About Redzone Resources Ltd.
Redzone is a mineral exploration company. Redzone is listed on the TSX Venture Exchange (REZ) and more information can be found at www.redzoneresources.ca.
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.
This News Release includes certain "forward-looking statements" which are not comprised of historical facts. Forward-looking statements include estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", or "plan". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to the Company, the Company provides no assurance that actual results will meet management's expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, the Company's objectives, goals or future plans, statements, exploration plans and estimates of market conditions. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to failure to identify mineral resources, failure to convert estimated mineral resources to reserves, the inability to complete a feasibility study which recommends a production decision, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, political risks, inability to fulfil the duty to accommodate indigenous peoples, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, capital and operating costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry, and those risks set out in the Company's public documents filed on SEDAR. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.
Redzone Resources Ltd.
President and Chief Executive Officer