Mar 10 2015
Banks Island Gold Ltd. is pleased to announce that it has signed a Binding Letter of Intent with SilverStream SEZC, effective March 4, 2015, for the advancement of the Yellow Giant Gold Project, located on Banks Island British Columbia.
The Company has been remitted the initial deposit of US$250,000 from SilverStream for the purchase of a silver metal stream from the Yellow Giant Project. Under the terms of the agreement SilverStream will purchase 100% of the silver ounces produced from the project for a purchase price of US$4.00 per oz. SilverStream will be remitted a minimum of 6,667 ounces of silver each month under the agreement and will retain the option to purchase 50% of the silver production greater than the minimum amount. The minimum amount of monthly delivery will remain in place until 140,000 ounces of silver or payments in kind have been settled under the metals purchase agreement. Silver delivery can be made in silver, gold equivalent, or cash payments. The parties have agreed to execute a binding metals purchase agreement within thirty (30) days pending the lodgment of certain security provisions and subject to a positive due diligence review.
"We are pleased to welcome SilverStream as a partner to the continued advancement of the Yellow Giant Gold Project. The investment by SilverStream is a significant milestone for Banks Island Gold Ltd. as it brings both capital and the technical validation and support of two significant strategic investors Metallica Commodities Corp ("MCC") and SilverStream. Both our existing debt facility with MCC and now the investment by SilverStream are non-dilutive to our shareholders and assist us in preserving the significant value being presently produced and in-situ to our Company" stated Ben Mossman, CEO and Director.
Kyle Floyd, Chief Executive Officer of SilverStream SEZC, added that "The Yellow Giant Gold Project combines a highly prospective land package with increasing current production. The executive and mining team at Banks Island have demonstrated an ability to execute in tough market environments bringing a highly productive asset into commercial production. We are excited to be a part of their next phase of growth and assisting the Banks Island team in building shareholder value."
Benjamin Mossman, P.Eng. is the qualified person who reviewed and approved the contents of this news release.
Source: http://www.banksislandgold.com/