Mr. Derek White reports
ASCOT COMPLETES ACQUISITION OF THE PREMIER PROPERTY
Ascot Resources Ltd. has completed the previously announced purchase of the Premier property held by Boliden Ltd., which is located in Stewart, B.C.
Derek White, president and chief executive officer of Ascot Resources, commented: "We are pleased to have successfully closed this transaction and look forward to the successful integration of the recently announced Silver Coin property (expected to close mid-October), expanding Ascot's high-grade resources and utilizing the existing infrastructure of the Premier mill site."
Pursuant to the definitive agreement, Ascot Resources paid Boliden a total purchase price of $11.05-million, subject to certain expense adjustments at completion.The final payment, held in escrow by Ascot Resources since June 30, 2017, was released to Boliden.In addition, Ascot Resources has agreed to pay Boliden a net smelter return royalty of 5 per cent on any future mine production at the Premier property and, in conjunction with net smelter return royalties pursuant to previous agreements, including the Dilworth property, these net smelter return royalties may be purchased by Ascot Resources for the total sum of $14.7-million, payable to various parties. Pursuant to the agreement, Ascot Resources assumed all obligations and liabilities of Boliden in connection with the Premier property, subject to certain exceptions. In addition, Boliden retains the right of first refusal in the event that Ascot Resources wishes to dispose of all or any part of its interest in the Premier property following the establishment of the presence of significant base metal mineral reserves at the Premier property. Under the agreement, Boliden has the option to enter into a long-term base metals offtake agreement with Ascot Resources upon the commencement of commercial production at the Premier property. Ascot Resources now holds a 100-per-cent interest in the Premier and Dilworth properties.
The Premier mill site has existing facilities and infrastructure, including a mill building, tailings facility, underground infrastructure and a power line. The current drill program is being conducted to expand the existing resource base to support engineering studies that commenced in the second quarter of 2018.
About Ascot Resources Ltd.
Ascot Resources is a gold-and-silver-focused exploration company with a portfolio of advanced and grassroots projects in the Golden Triangle region of British Columbia. Ascot Resources' flagship Premier project is a near-term high-grade advanced exploration project with large upside potential. Ascot Resources is poised to be the next Golden Triangle producer with an experienced and successful exploration, development and operating team, coupled with a highly regarded major shareholder.
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