Ridgestone Mining Inc. (TSX Venture-RMI) (the “Company” or “Ridgestone“), is pleased to announce that it has entered into an assignment agreement with 1082223 B.C. Ltd. pursuant to which the Company has obtained 1082223 B.C. Ltd.’s rights (the “Assignment“), under a letter of intent (the “LOI“) with YQ Gold de Mexico, S. de R.L. de C.V. (“YQ Gold“), to a proposed option to acquire a 100% interest in what is known as the gold-copper Rebeico Property.
The Rebeico Property is comprised of 6 mining concessions covering approximately 167 hectares in Sonora, Mexico.
The Company is currently working towards completion of a definitive agreement with YQ Gold to govern the grant and exercise of the Option, which will be subject to approval of the TSX Venture Exchange (“Exchange Approval“).
Under the terms of the Option, Ridgestone would be required to pay an aggregate of US$500,000 in cash payments to YQ Gold over a period of six months from receipt of Exchange Approval of which US$350,000 may be satisfied through the issuance of Ridgestone shares having an equivalent fair market value, and also incur exploration expenditures of US$1,000,000 within two years from Exchange Approval. In addition, exercise of the Option would also require Ridgestone to pay 50% of the profit derived from commercial production from the Rebeico Property, to a maximum amount of US$1,450,000, to YQ Gold and grant a 2% NSR (subject to an optional repurchase by Ridgestone for US$1,000,000) to certain shareholders of YQ Gold.
As part of the Assignment, Ridgestone will reimburse CDN$55,000 to 1082223 B.C. Ltd. for a deposit and related expenses previously paid by 1082223 B.C. Ltd. to YQ Gold under the LOI.
For further information, please contact:
Chief Financial Officer and Corporate Secretary
Ridgestone Mining Inc.
About the Company
Ridgestone Mining Inc. is engaged in the business of mineral exploration and holds an option to acquire a 100% interest in the Cimarron Gold Propertylocated in Nye County, Nevada, USA.
Neither 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.
This news release contains forward-looking statements or information (collectively referred to herein as “forward-looking statements”). Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements and are not guarantees of future performance of the Company. In this news release such statements include but are not limited to the preparation of a definitive agreement and the requirement of TSX Venture Exchange approval therefor. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. These forward-looking statements reflect management’s current views and are based on certain expectations, estimates and assumptions which may prove to be incorrect. A number of risks and uncertainties could cause our actual results to differ materially from those expressed or implied by the forward-looking statements, including those described in the Company’s Prospectus dated February 9, 2018 available on www.sedar.com. Should one or more of these risks or uncertainties materialize, or should any of the Company’s assumptions prove incorrect, actual results may vary in material respects from those projected in the forward-looking statements. Readers are cautioned that the foregoing list of risks, uncertainties and other factors is not exhaustive. Unpredictable or unknown factors not discussed could also have material adverse effects on forward-looking statements. The impact of any one factor on a particular forward-looking statement is not determinable with certainty as such factors are dependent on other factors, and the Company’s course of action would depend on its assessment of the future considering all information then available. All forward-looking statements in this news release are expressly qualified in their entirety by these cautionary statements. Except as required by law, the Company assumes no obligation to update forward-looking statements should circumstances or management’s estimates or opinions change.