Anglo Swiss Resources (TSX-V:ASW, StockForum), a Vancouver-based exploration company controlling highly-prospective Canadian precious and base metal exploration portfolio, announced today that the company had sign a sales agreement to sell its Kenville gold property in southeastern British Columbia to 0995237 B.C. Ltd, a private BC-based entity.
According to the news release, “Total consideration for the purchase of the Property is CDN$5,900,000 which shall be satisfied by the delivery to Anglo Swiss of a $100,000 non-refundable deposit within seven (7) days of execution of this Letter Agreement, a payment of $800,000 on or before 60 days following the execution of this Letter Agreement and five (5) payments totaling $5,000,000 with annual payments of $1,000,000 starting on or before the third anniversary following the closing date.”
Anglo Swiss CEO, Jari Paakki, commented on the deal, “Completion of this transaction will provide the Company with important short term cash in one of the most stagnant junior mining markets in recent history. It allows us to move forward with our rebranding initiatives that we believe will greatly improve the Company's future ability to grow and increase shareholder value, and also provides future cash to sustain working capital, minimizing long-term financings and share dilution.”
The transaction is still subject to various conditions including confirmed due diligence, regulatory approvals and Anglo shareholder approval.
Anglo Swiss was in the news recently when the company reached an agreement in principle to purchase gold exploration properties in Sweden.
Shares rose 33.33% on the news to $0.02 per share
Currently there are 184.7m outstanding shares with a market cap of $3.7 million.