VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct 29, 2014) - Savant Explorations Ltd. (TSX VENTURE:SVT) ("Savant") is pleased to announce the signing of an Option Agreement (the "Agreement") with Quantum Pacific Exploration SpA (Quantum Pacific), a private Chilean Company on Savant's wholly-owned Yuby-Gabriela Property, Chile (the "Property").
Quantum Pacific may acquire a 100% interest in the Property by making staged cash payments totalling US$2.5 million to Savant over a five (5) year period from the effective date of the Agreement.
Regarding the transaction, John McClintock, President & CEO of Savant states; "We received more than $1-million in cash payments and a significant amount of new technical data from our previous partner on the Yuby-Gabriela Property. We are very pleased that Quantum Pacific will now work to advance the potential of the property and continue to add value for the benefit of both Savant and Quantum Pacific shareholders."
Main Business Terms
Payments made by Quantum Pacific to Savant during the initial 12 months of the Agreement include an initial cash payment of US$25,000 on signing, followed by subsequent optional cash payments of US$50,000 after six months and US$100,000 after 12 months.
Quantum Pacific may continue to keep the Agreement in good standing by making annual cash payments to Savant of US$200,000, US$225,000, US$600,000 and US$1.3 million, respectively, in years 2 through 5 of the Agreement.
Quantum Pacific will not earn fractional interests in the property and may elect to terminate the option at any time after the initial cash payment is made.
If Quantum Pacific completes all of the necessary cash payments to exercise its option, Savant will retain a 2.0% Net Smelter Returns Royalty ("NSR"); Quantum Pacific will have the right for five (5) years after vesting its interest to reduce the NSR to 1.0% by paying Savant US$2 million in cash.
Savant considers the Yuby Gabriela Property as a non-core asset and any funds received from the option payments will be used to advance its Southwest U.S. copper strategy and for general corporate purposes.
About Savant
Savant is an exploration and discovery stage company focused on generating and exploring high quality precious and base metal properties in stable jurisdictions. Savant has recently initiated a new exploration and discovery strategy in Southwest United States with the acquisition of the Buckhorn, Jasper Canyon, and Frazier Creek properties. Savant's other properties and assets are 100% owned with combined annual holding costs of approximately $30,000. In addition to the Yuby-Gabriela property, Savant also owns two other high-quality properties, Blue Moon and Yava that Savant's management is seeking to monetize for maximum value to Savant and its shareholders.
This news release contains forward-looking statements concerning the Yuby Gabriela Property. In particular, statement regarding the receipt of future option payment are forward looking because these payments are in the future and there is no assurance that all these payments will be received by Savant.. These statements are based on assumptions and judgments of management regarding future events or results that may prove to be inaccurate as a result of failure to obtain necessary regulatory approvals, the failure to reach agreement on final documentation, exploration results and other risk factors that are beyond Savant's control. There can be no assurance that such forward-looking statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements contained in this news release.
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.