TORONTO, ONTARIO--(Marketwired - Dec. 6, 2013) - Ryan Gold Corp. (TSX VENTURE:RYG) ("Ryan Gold" or the "Company") announces that it has amended the option agreement (the "Agreement") with respect to the sale of the Company's Los Jarros and Jarros Norte Properties (the "Properties") in Mexico. Under the current closing terms Minera Frisco SAB de CV ("Minera Frisco") has purchased the Properties by making a final US$1.35 million payment to Minera Valdez SA de CV ("Minera Valdez"), the Company's 100% owned subsidiary.
In August 2010, Minera Valdez and the Company entered into an Agreement with AuRico Gold Inc. ("AuRico") to sell the Properties for US$2.5 million, with payments staged over 4 years. Over the first two years of the Agreement, AuRico made US$400,000 in payments. A payment of US$400,000 was owed in August, 2013, and $US1.7 million was to be owed in August, 2014. In addition, should commercial production be initiated on the Properties, Minera Valdez would be paid a royalty equal to 2% of the Net Smelter Returns ("NSR") from such production. If cumulative royalty payments reached US$2.5 million, the NSR would be reduced to 1%. In December, 2012 Minera Frisco acquired a number of assets from AuRico, including the option to purchase the Properties.
Ryan Gold and Minera Frisco have agreed to amend the Agreement as follows: rather than making two payments totaling US$2.1 million by August 2014, Minera Frisco has made one US$1.35 million payment. The NSR remains in place. This final payment concludes the sale of the Properties.
This press release contains forward-looking statements within the meaning of applicable securities legislation. Such statements include, without limitation, statements regarding the future results of operations, performance and achievements of the Company, including potential property acquisitions, the timing, content, cost and results of proposed work programs, the discovery and delineation of mineral deposits/resources/reserves, geological interpretations, proposed production rates, potential mineral recovery processes and rates, business and financing plans and business trends. Although the Company believes that such statements are reasonable, it can give no assurances that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward-looking statements as a result of various factors, including, but not limited to, variations in the nature, quality and quantity of any mineral deposits that may be located, significant downward variations in the market price of any mineral that may be produced, the Company's inability to obtain any necessary permits, consents or authorizations required for its activities, to produce minerals from its properties successfully or profitability, to continue its projected growth, to raise the necessary capital or to be fully able to implement its business strategies. All of the Company's public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials, including any technical reports filed with respect to the Company's mineral properties. This press release is not, and is not to be construed as an offer to buy or sell securities in the United States.
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