VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan. 16, 2014) - War Eagle Mining Company Inc. (TSX VENTURE:WAR) ("War Eagle" or the "Company") reports that it has completed the sale of the Tres Marias zinc-lead-germanium project in Chihuahua, Mexico to Contratista y Operaciones Mineras SA de CV ("COMSA"), a Mexican mining company. Total consideration for the sale was US$5,000,000 cash which will be satisfied by (i) US$65,000 cash received on closing with the balance of US$2,435,000 in fixed periodic cash payments over three years and (ii) a 2% net smelter return royalty to a maximum of a further US$2,500,000 with (iii) a possible increase in the royalty to a maximum of up to US$3,300,000 depending on metal sales volumes and prices.
President and CEO of War Eagle, Thomas R. Atkins, commented on the sale of the Tres Marias project, stating: "The transaction with COMSA enables the development of the mineral resource at Tres Marias such that shareholders of War Eagle can realize a return from the prior investment in the property. COMSA intends to mobilize mobile equipment that should enable the mining and processing of this small, but high grade zinc-lead germanium mineral resource at Tres Marias to the mutual benefit of both COMSA and War Eagle. Numerous permits are in place to facilitate rapid development and much of the mineral resource at Tres Marias is of such high grade that it can simply be mined and sent to a smelter."
The sale of Tres Marias has received the approval of the shareholders of the Company and the approval of the TSX Venture Exchange.
Mr. Atkins will be attending the Cambridge House Vancouver Resource Investment Conference January 19-20, 2014, occupying booth #1811. He looks forward to meeting investors and discussing Company activities.
This news release was prepared by management of War Eagle, which takes full responsibility for its contents. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Legal Notice Regarding Forward-Looking Statements
This disclosure contains certain forward-looking statements that involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control including: the impact of general economic conditions in the areas in which the Company operates, industry conditions, changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in commodity prices, foreign exchange or interest rates, stock market volatility and obtaining required approvals of regulatory authorities. In addition there are risks and uncertainties associated with mining operations, therefore the Company's future results, performance or achievements could differ materially from those expressed in these forward-looking statements will transpire. All statements included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements include references to a future drill program and related plans. These statements are based on assumptions made by the company based on its experience, perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances.