Huakan International Mining Inc. Extends Closing DHuakan International Mining Inc.
TSX VENTURE :
HK
June 16, 2011 08:30 ET
Huakan International Mining Inc. Extends Closing Date of Sale of Greenwood Gold Project Assets
VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 16, 2011) -Huakan International Mining Inc. (TSX VENTURE:HK) (the "Company")reports that further to the announcement of the sale of its GreenwoodGold project assets to Gold Crown LLC (NR 11-06), the parties haveagreed to extend the deadline for closing of the transaction to June 30,2011.
Under the terms of the asset purchase agreement, theCompany has agreed to sell a 100% interest in its Greenwood GoldProject, located near Greenwood, British Columbia, to Gold Crown, inconsideration for C$5,000,000 and a 2% net smelter returns royalty(subject to reduction to 1% if the price of gold drops below US$1,050)on any ore milled at the Greenwood mill, up to a maximum of $9,000,000over a ten year period. Gold Crown has also agreed to make annualminimum net smelter royal payments of $500,000 and will make a lump sumpayment at the end of the ten year period, if necessary, to bring thetotal net smelter royalty payments to $9,000,000.