About 2 months ago, Pistol Bay Mining Inc. reported that mining giant Rio Tinto has started to drill 4-6 holes on the C5 uranium property in the prolific Athabasca Basin. Today, Pistol Bay announced to have entered into an amending agreement with Rio Tinto Exploration Canada Inc. with regard to the C 4, 5 and 6 Uranium properties, whereby Rio Tinto will make an initial cash payment of $750,000 to Pistol Bay within the next 3 weeks.
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 today:
“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.”
Gwen Preston comments on Pistol Bay
Pistol Bay Mining Inc.
Suite 760 - 777 Hornby Street
Vancouver, B.C. V6Z 1S4 Canada
Phone: +1 604 369 8973
Shares Issued & Outstanding: 30,020,757
Canadian Symbol (TSX.V): PST
Current Price: $0.12 CAD (March 27, 2017)
Market Capitalization: $3.6 Million CAD
German Symbol / WKN (Frankfurt): 0QS2 / A12DZH
Current Price: €0.076 EUR (March 28, 2017)
Market Capitalization: €2.3 Million EUR
Report #4: "Rio Tinto to drill for uranium while Pistol Bay focuses on zinc, copper and gold" (January 24, 2017)
Report #3: "Pistol Bay acquires high-grade zinc-copper deposits and becomes dominant land holder in the prolific Confederation Lake VMS Belt" (October 19, 2016)
Report #2: "Pistol Bay acquires new zinc project amidst smoking hot zinc prices" (September 1, 2016)
Report #1: "Early Bird Special Report: Pistol Bay with Zinc like a Phoenix from the Ashes?" (July 29, 2016)
Disclaimer: Please read the full disclaimer within the full research report as a PDF (here) as fundamental risks and conflicts of interest exist.