Valencia Enters Into Revised Royalty Agreement
TORONTO, ONTARIO, Jun 23, 2010 (Marketwire via COMTEX News Network) -- Valencia Ventures Inc. (TSX VENTURE:VVI) ("Valencia" or the "Company") is pleased to announce that it has entered into a revised royalty agreement with Premium Exploration, USA, Inc., a wholly-owned subsidiary of Premium Exploration Inc. ("Premium") (TSX VENTURE:PEM). The revised royalty agreement replaces the previous royalty agreement entered into among Clearwater Mining Corporation, Kria Resources Limited (TSX VENTURE:KIA), and the Company governing the acquisition of the Buffalo Gulch projects located in central Idaho (the "Buffalo Gulch Property"). Pursuant to the terms of the revised royalty agreement Premium will pay the Company US$500,000, which is payable in cash or in common shares of Premium and shall pay the Company a 0.75% net smelter return royalty ("NSR") on the Buffalo Gulch Property. The NSR is payable in quarterly instalments on commencement of commercial production of gold on the Buffalo Gulch Property to a maximum of US$1,500,000. In addition, the Company announces that it has entered into a loan agreement with a private Ontario company ("Ontario Co.") whereby the Company has agreed to lend Ontario Co. CAD $700,000 (the "Loan"). Valencia has agreed to acquire the Diana Property from Ontario Co., subject to TSX Venture Exchange approval (See Valencia press release dated May 25, 2010). Ontario Co. has committed to use the proceeds of the Loan to carry out a comprehensive $700,000 exploration program on the Diana Property to satisfy the 2010 work commitments in respect of the Diana Property. The principal under the Loan will incur interest at a rate of 10% per year and shall be secured by a personal guarantee of the sole director of Ontario Co. and shall mature on September 30, 2010. About Valencia Ventures Valencia is a Canadian resource company traded under the symbol VVI on the TSX Venture Exchange. For additional information, e-mail info@valenciaventures.com. Forward Looking Statements This press release contains "forward-looking information" within the meaning of applicable securities legislation. Forward-looking information includes, but is not limited to, statements regarding the impact and terms of the revised royalty and Loan, including without limitation the likelihood that it will be capitalized or repaid on time or at all on the Company and the receipt of regulatory approvals. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, political and social uncertainties; the actual results of current exploration activities; conclusions of economic evaluations; changes in project parameters, future prices of mineral prices; and risks of the mining industry. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws. SOURCE: Valencia Ventures Inc. Valencia Ventures Inc. Frederic W.R. Leigh President and CEO fleigh@forbesmanhattan.com Copyright (C) 2010 Marketwire. All rights reserved. |