Silvore Fox Minerals Amends Option Agreement on High Grade Zinc Property
MARKHAM, ONTARIO--(Marketwired - June 13, 2013) - Silvore Fox Minerals Corp. (the "Silvore Fox") (TSX VENTURE:SFX) announces that the exploration and option agreement originally signed June 15, 2011 between Silvore Fox and Orebot Inc., and later amended by an agreement dated June 13, 2012 (together called the "Exploration and Option Agreement") has been further amended pursuant to an agreement dated June 12, 2013 (the "Second Amending Agreement").
The Exploration and Option Agreement provided Silvore Fox the right to acquire a one-hundred per cent (100%) undivided interest in the Pick Lake Property from Orebot, Inc. with no Net Smelter Royalty (see the June 29, 2011 press release). This Second Amending Agreement provides SFX with much greater financial flexibility in making future payments toward the Purchase Price. The significant changes are as follows:
SFX will pay Orebot Inc. $20,000 on June 15, 2013 by issuing 200,000 common shares of Silvore Fox at an agreed upon price of 10 cents per share subject to acceptance by the TSX Venture Exchange of such issuance.
SFX will pay Orebot, Inc. $25,000 on June 15, 2014 and $30,000 on June 12, 2015.
The timing of the most significant payments toward the purchase price has been extended by a further two years, with the bulk of payments ($1,160,000) becoming payable in three instalments as follows: June 15, 2016 ($300,000), June 15, 2017 ($360,000), and June 15, 2018 ($500,000).
SFX now has the option to pay up to 50% of each of the three instalments referred to in section 3 above in common shares of SFX.
The total purchase price for the property is increased by $25,000 to $1,295,000.
Silvore Fox management would like to thank the management of Orebot Inc. for their understanding of current market conditions and their continued commitment to working with Silvore Fox on this prospective property. The 10 cent per share price of SFX common shares being used for the current installment payment to Orebot Inc. demonstrates a strong vote of confidence in Silvore Fox. It also demonstrates the commitment of SFX management to protect shareholder value.
According to Ontario government figures, reported by Inmet Mining in 1998, the Pick Lake deposit has an historical non-compliant reserve estimate of 600,000 tonnes at 21.2% Zinc, 1% Copper. SFX management understands this could potentially make it the highest grade zinc resource known in Ontario. This tonnage and grade was not verified by the Company and cannot be relied upon as a current resource. The Company's management believes that the surrounding Winston Lake and Pick Lake area has potential for further discoveries in addition to its historical deposits.
Proposed Merger with Golden Share
Silvore Fox previously announced that it has signed an amalgamation agreement with Golden Share Mining Corporation (TSX VENTURE:GSH) on May 30, 2013 and both companies will be requesting approval of the transaction at their respective shareholders' meetings currently scheduled for July 25, 2013. All major decisions concerning SFX's exploration activities will therefore be on hold until this process is finalized.