April 13, 2016 TSX-V: AMK
American Creek Resources Ltd. (TSX-V: AMK) (“the Corporation”) is pleased to announce that it has successfully negotiated and has entered into an amended agreement with an arm’s length third party that holds an NSR interest (“NSR Holders”) related to the Corporation’s 51% interest in the Treaty Creek property located in NW British Columbia. The amended agreement reduces the prior $6 million payment obligation which was potentially triggered by entering into a deal in which the Corporation reduced its 51% interest in the property, or granted access for development and tunnel construction.
The Corporation is seeing a resurgence of interest in the “Golden Triangle” region of British Columbia and several parties have identified the Treaty Creek property as noteworthy and have expressed an interest in the project.
The amended agreement allows the Corporation to better position itself to take advantage of the increased activity and awareness associated with Seabridge Gold and Pretivm Resources advancing their respective projects located adjacent to and very near the Treaty Creek property.
The terms of the amended and restated agreement are as follows:
1) The NSR Holders will be issued 15,000,000 common shares of the Corporation.
2) The NSR Holders will hold a 2% NSR on certain Treaty Creek property mineral tenures (“Group I”) and a 1% NSR on the remaining Treaty Creek mineral tenures (“Group II”). The NSR interests apply only to the Corporation’s 51% interest in the Treaty Creek property. Within 30 days of a Treaty Creek property feasibility study being completed, the NSR Holders will be paid an aggregate sum of $1,500,000 in order for the Corporation to collectively buy out 0.75% of the Group I NSR and 0.25% of the Group II NSR. At any time the Corporation may buy out a further 0.75% of the Group I and 0.25% of the Group II NSR for the aggregate sum of $1,500,000. The NSR Holders will retain a 0.5% NSR on the Group I and Group II mineral tenures.
3) The NSR Holders will be entitled to 25% of any cash payments or securities the Corporation may receive related to the Corporation entering into an agreement with a third party to advance the Treaty Creek project such that it disposes directly or indirectly of any of its current 51% interest in the Treaty Creek property.
4) The Corporation will pay the NSR Holders 25% of any consideration the Corporation may receive from any non-governmental party for access, easement or right of way over, on, under or through any part of the Treaty Creek property for a mining infrastructure purpose, or fees for the use of the Corporation’s own infrastructure facilities.
5) The Corporation will pay the NSR Holders 25% of any compensation proceeds the Corporation may receive from any governmental or quasi-governmental agency for the loss of any rights resulting from the expropriation of access, easement or right of way over, on, under or through any part of the Treaty Creek property for a mining infrastructure purpose.
Darren Blaney, President & CEO stated: “We are very pleased to have negotiated and finalized this deal as it opens up many more possibilities in advancing the Treaty Creek Project. Interest in the region in and around Seabridge and Pretivm’s projects is picking up considerably and the Treaty project is poised to benefit from that interest”.
The shares issued under this agreement will be subject to the statutory four month and a day hold period.
This Agreement is subject to approval by the TSX Venture Exchange.
American Creek Resources Ltd. is a Canadian junior mineral exploration company focused on the acquisition, exploration and development of mineral deposits within the Province of British Columbia, Canada.
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.