Rio Tinto to Provide $750,000 Cash Injection to Pistol Bay
VANCOUVER, BC / ACCESSWIRE / March 28, 2017 / Pistol Bay Mining Inc. (OTC PINK: SLTFF) (TSX-V: PST) (FSE: OQS2) ("Pistol Bay" or the "Company") is pleased to report that the Company has entered into an amending agreement with Rio Tinto Exploration Canada Inc. ("RTECI" or "Rio Tinto"), with regards to the C 4, 5 and 6 Uranium properties, whereby Rio Tinto will make an initial cash payment of $750,000 to Pistol Bay.
The C block of Uranium properties, located in the Athabasca Basin of Saskatchewan, is under option to Rio Tinto, which has earned a 75-per-cent interest to date. Rio Tinto has previously indicated its intention to exercise the further option to acquire a 100-percent interest by paying Pistol Bay $5-million on or before Dec. 31, 2019, and granting Pistol Bay a 5-per-cent net profit interest (see Pistol Bay news release of Feb. 16, 2015).
Under the amending agreement, Rio Tinto will acquire an additional 25% interest in the Property (thereby increasing its aggregate interest to 100%), by:
(a) paying Pistol Bay $750,000 on or before April 17, 2017; and
(b) paying Pistol Bay one of the following payments:
(i) $1,500,000 on or before 31 December 2017;
(ii) $2,000,000 on or before 31 December 2018; or
(iii) $2,250,000 on or before 31 December 2019.
Pistol Bay will retain a 5% net profits interest in the Property.
Charles Desjardins, CEO of Pistol Bay, commented: "Rio Tinto's payment does not dilute the Company and allows Pistol Bay to expand the scope of its upcoming exploration work, including drilling, on its Confederation Lake greenstone belt zinc-copper-gold project. We look forward to continuing our working relationship with Rio Tinto."
About Pistol Bay Mining Inc.
Pistol Bay Mining Inc. is a diversified junior Canadian mineral exploration company with a focus on precious and base metal properties in North America. For additional information please contact Charles Desjardins - pistolbaymining@gmail.com.
On Behalf of the Board of Directors
Pistol Bay Mining Inc.
"Charles Desjardins"
Charles Desjardins,
President and Director
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.
Cautionary note:
This report contains forward-looking statements. Resource estimates, unless specifically noted, are considered speculative. Any and all other resource or reserve estimates are historical in nature, and should not be relied upon. By their nature, forward-looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Cautionary Note to US investors: The U.S. Securities and Exchange Commission specifically prohibits the use of certain terms, such as "reserves" unless such figures are based upon actual production or formation tests and can be shown to be economically and legally producible under existing economic and operating conditions.
SOURCE: Pistol Bay Mining Inc.
