|Mon Dec 19, 2016|
Century Energy Enters into Letter of Intent to Acquire a 100% Interest in the Tassawini Property
|Vancouver, BC -- Century Energy Ltd. (NEX: CEY.H) ("Century" or the "Company") is pleased to announce that it has entered into a letter of intent dated December 16, 2016 to acquire the Tassawini gold property located in Guyana (the "Transaction"). The Tassawini Property is located in the Barama-Waini District of north western Guyana, approximately 170 kilometres northwest of the capital, Georgetown, Guyana, South America. Gold exploration around the Tassawini Property area has been ongoing actively since the beginning of the twentieth century. Additional information on the property will be provided in a subsequent news release. |
Pursuant to the letter of intent, Century is proposing to acquire the Tassawini Property from the property vendors in consideration for the payment of US$250,000 in cash on completion of initial due diligence and a further US$1,750,000 in cash on closing, the issuance of 45,000,000 common shares at a deemed price of $0.20 per share on closing, and the grant of a net smelter return royalty of 1.5% which may be repurchased by the Company at any time until the commencement of commercial production at the price of US$2,400,000. The vendors will also be granted the right to nominate one director to Century's Board of Directors effective on closing of the transaction.
In connection with the acquisition of the Tassawini Property, the Company will conduct an offering of common shares for proceeds of up to $5 million at a price of $0.20 per common share.
Closing of the Transaction is subject to a number of conditions including the parties entering into a binding definitive agreement by January 31, 2017, Exchange approval, completion of technical and legal due diligence, and completion of the concurrent private placement. The transaction was negotiated at arm's length and will constitute a reverse take-over of Century under the policies of the TSX Venture Exchange.
For more information, contact:
President and Director
Telephone: (604) 218-7400
Completion of the transaction is subject to a number of conditions, including but not limited to, Exchange acceptance and if applicable, disinterested shareholder approval. Where applicable, the transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the transaction will be completed as proposed or at all.
Investors are cautioned that, except as disclosed in the management information circular or filing statement to be prepared in connection with the transaction, any information released or received with respect to the transaction may not be accurate or complete and should not be relied upon. Trading in the securities of Century Energy Ltd. should be considered highly speculative.
The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this news release.
You can view the Previous News item: Mon Oct 17, 2016, Century Energy Announces Results Of AGM And Director Reappointment
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