Silver Bull Resources, Inc. (
TSX: T.SVB,
Stock Forum) has entered into a binding letter of agreement dated Dec. 13, 2013 with
BHK Resources, Inc. (
TSX: T.BHK.P,
Stock Forum) to sell all of the issued and outstanding securities of Dome International Global Inc
., a subsidiary of Silver Bull and private British Virgin Islands company which holds, indirectly, a 100% interest in and to the Ndjole manganese and gold licenses, located in Gabon. The Transaction is an arm's length transaction.
The Ndjole licenses lie 120 kilometers east of the capital city of Libreville, Gabon, and the property is accessed via a paved road. The area is prospective for gold and manganese and the property has had approximately US$$5.7 million spent on exploration.
According to the
Silver Bull Resources press release, as consideration for the Dome Securities, BHK will pay to Silver Bull an aggregate of US$$1.5 million, payable in cash, of which US$$25,000 was paid as a non-refundable deposit upon the execution of the letter agreement.
Upon the completion of the transaction, Dome International Global Inc. will become a wholly owned subsidiary of BHK.
"We are very pleased to enter into a binding letter of agreement with BHK Resources for the sale of the Ndjole property in Gabon,” said Tim Barry, Silver Bull President and CEO. “Silver Bull is fully focused on advancing its flagship Sierra Mojada silver-zinc project in Coahuila, Mexico, and if completed, this transaction will give the company the opportunity to generate $1.5 million in non-dilutive capital in a very difficult capital markets environment.”
Silver Bull is a mineral exploration company with a flagship project in Mexico and two mineral licenses in Gabon, Central Africa.
On Tuesday, Silver Bull was up 10.3% and was trading at $0.375 a share.