Online, June 4, 2015 (Newswire.com) - VANCOUVER, BC - Highbank Resources Ltd. (the "Company"), (TSX VENTURE: HBK)(FRANKFURT: V7O)
Further to our news release dated May 15, 2015; Highbank Resources Ltd. ("Highbank") has received approval from the TSX Venture Exchange of the $900,000 working capital financing. As a result of additional expenditures incurred during pre-production; commissioning of the production equipment; further site and roadway upgrades; changes required to the aggregate wash plant in order to maximize output; and costs incurred in the preparation of the Preliminary Economic Assessment ("PEA"); Highbank requires additional financing before product sales and cash inflows.
The financing will not result in any further dilution of the share capital, no share loan bonuses will be issued, and is expected to be repaid from production sales.
The Company has received $675,000 from a non-related third party and $225,000 from Melsar Management Inc. (a company controlled by William Loucks, Director).
The Company has signed an Amended Agreement with Stan Spletzer/ Solid Holdings Ltd. ("Solid Holdings").
The Company and Solid were parties to a management agreement dated February 20, 2012 relating to the Company's Swamp Point North ("SPN") aggregate project. The Company agrees to retain Spletzer as Interim Vice-President of Aggregate Operations. After such time as a qualified candidate is engaged, Spletzer and/or Solid Holdings will then accept the role of Consultant to the Company and continue to provide the following:
- Manage procurement, labor hiring and camp administration;
- Act as Consultant for purchasing and problem solving for the SPN project, when directed by the Company management;
- Such other duties as may be reasonably directed from time to time by the Company.
In consideration for Spletzer and Solid Holdings entering into this new agreement and further providing the services, the Company shall:
- Waive the $50,000 cash advance forwarded April 4, 2014 in consideration for Spletzer and Solid Holdings agreeing to release the Company from its obligation to pay the management fee of $1 per ton of aggregate sold and/or delivered as noted in the management agreement dated February 20, 2012;
- Continue to honor the stock option agreement between the Company and Spletzer dated February 28, 2012 for the right to purchase up to 500,000 common shares at the exercise price of $0.10 per share until February 28, 2017 (already exercised 200,000 stock option common shares); and
- In the event that the Company received an offer from an independent third party to acquire the SPN project, and the Company accepts such an offer, the Company agrees to pay Spletzer or Solid Holdings a percentage cash settlement of the sales price, as compensation for developing and building the deposit of 3% (the "PCS").
Highbank is continuing development and expansion of the SPN site and has secured two larger excavators for the extraction, production and stockpiling of aggregate for future sales.
Highbank is continuing its efforts to secure long-term contracts for its aggregate products from Swamp Point North.
On behalf of the Board of Directors of HIGHBANK RESOURCES LTD.
Victor N. Bryant
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.
This news release may contain forward-looking statements based on assumptions and judgments of management regarding future events or results. Forward-looking statements are projections of events, revenues, income, future economic performance or management's plan and objective for future operations and include, without limitation, statements with respect to the anticipated production from the Swamp Point North Aggregate Project, the realization of mineral estimates, success of mining operations, the timing and amount of estimated future production, title disputes or claims, environmental risks, limitations on insurance coverage, current and anticipated purchase negotiations and arrangements, requirements for additional capital; and government regulation of mining operations. In some cases, you can identify forward- looking statements by the use of terminology such as "may", "should", "expects", "plans", "anticipates", "believes", "estimates", "predicts", "potential" or "continue" or the negative of these terms or other comparable terminology. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors, including: fluctuations in worldwide prices and demand for aggregates; changes in project parameters as plans continue to be refined; possible variations in grade and or recovery rates; accidents, labour disputes as well as those factors detailed from time to time in the Company's interim and annual financial statements and management's discussion and analysis of those statements, are filed and available for review on SEDAR at www.sedar.com.
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