TORONTO, Nov. 17, 2017 (GLOBE NEWSWIRE) — McChip Resources Inc. (“McChip” or the “Company”) (TSX-V:MCS) is pleased to announce that it has successfully closed the previously announced sale of certain of its mineral rights in the Rocanville area of Saskatchewan pursuant to a purchase and sale agreement dated November 1, 2017 (the “Agreement”). The purchaser, Altius Royalty Corporation (the “Purchaser”), is a wholly owned subsidiary of Altius Minerals Corporation (TSX:ALS).
Pursuant to the terms of the Agreement, the Purchaser paid $3,000,000 on closing and in addition, agreed to pay to McChip an annual royalty of $500,000 for a term of ten years, conditional on certain potash production levels and grades of potash ore being maintained on an annual basis during the term of the Agreement.
The sale contemplated hereby provides McChip with an immediate inflow of cash and the opportunity to generate guaranteed cash flow on a term basis. The net proceeds from this transaction will also provide the Company with additional financial flexibility and help strengthen its balance sheet. It is currently anticipated that such net proceeds will be used by McChip for general corporate purposes and to potentially fund prospective investment opportunities.
About McChip Resources Inc.
McChip celebrates eighty two years of continual business operations in 2017. Prior to a name change in 1981, the Company operated as Madsen Red Lake Gold Mines Limited. The Company is listed on the TSX Venture Exchange and has 5,660,096 common shares issued and outstanding.
For further information contact:
Edward G. Dumond
McChip Resources Inc.
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 news release.
Certain statements in this news release constitute “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information contained in forward-looking statements can be identified by the use of words such as “are expected”, “is forecast”, “is targeted”, “approximately”, “plans”, “anticipates”, “projects”, “continue”, “estimate”, “believe” or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. This news release contains forward-looking information regarding: (i) whether certain future post-closing conditions or milestones will be completed in accordance with the terms of the Agreement; and (ii) expectations for the effects of the transaction or the ability of the Company to successfully achieve business objectives, including the ability of the Company to allocate the net proceeds as stated above. Forward-looking information involves a number of known and unknown risks and uncertainties, which, if incorrect, may cause actual results to differ materially from those anticipated by the Company, including, without limitation, the risks that certain future post-closing conditions or milestones may not be completed in accordance with the terms of the Agreement and/or certain potash production levels and grades of potash ore may not be achieved in the future, and/or the parties may be unable to realize on the anticipated benefits of the transaction. Accordingly, readers should not place undue reliance on forward-looking information.
For additional information with respect to these and other factors and assumptions underlying the forward-looking information made in this news release, see the Company’s most recent management’s discussion and analysis, as well as other public disclosure documents that can be accessed under the issuer profile of “McChip Resources Inc.” on SEDAR at www.sedar.com. The forward-looking information set forth herein reflects the Company’s reasonable expectations as at the date of this news release and is subject to change after such date. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law. The forward-looking information contained in this news release is expressly qualified by this cautionary statement.