/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
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(All dollar amounts are in United States dollars unless otherwise
indicated)
PERTH, Australia, July 30, 2018 /CNW/ - LeadFX Inc.
(the "Company" or "LeadFX") (Toronto Stock Exchange
"TSX": LFX) today announced it has signed definitive documentation
to sell its indirect equity and debt interests in Chief
Consolidated Mining Company ("Chief").
LeadFX owns, via its 100% owned subsidiary 9182357 Canada Ltd.,
an 83.5% interest in the common shares of Chief which were acquired
through a merger with GeoZone Exploration Ltd. in November 2015. 9182357 Canada Ltd is the owner of
secured and unsecured debts due from Chief.
Chief owns approximately 14,000 acres of land, of which
approximately 13,000 acres are patented mining claims, in the Main
Tintic and East Tintic Mining District, located across Utah County and Juab
County, Utah, USA. The district is about 60 miles south of
Salt Lake City near the town of
Eureka.
The Chief properties contain three potential primary mineral
projects: (i) the prospective lead, silver, gold and zinc deposits
and related infrastructure surrounding the former operating Burgin
Mine (the "Burgin Property"); (ii) the prospective gold and silver
deposit and related infrastructure surrounding the former operating
Trixie Mine; and (iii) the prospective mining or quarrying of
industrial minerals and aggregates (namely, silica and
limestone).
The Company's interests are being sold to Ruby Hollow LLC and
321888 LLC – unrelated special purpose companies associated with
Riverfield Capital – a mining, investment and capital markets
business operated by Mr. Geoff
Stanley. Mr. Stanley has over 30 years mining industry
experience and is a past Managing Director of BMO Capital Markets
and past President of New York Metals Analysts Group. He has
assembled a team of mining, corporate and legal practitioners to
advance the Chief properties. Tharp & Associates, LLC, of
Arvada, Colorado, served as the
introducer of the Chief transaction and adviser to Riverfield
Capital.
Proceeds from the sale of LeadFX's interests in Chief total
US$4.5 million of which US$3.0 million is due at closing and a further
US$1.5 million, subject to
adjustments, is due 12 months after closing. A sixty day due
diligence period is available to the buyers and should the due
diligence conditions to closing be satisfied or waived by the
buyer, closing would occur within a further period of 21
days.
Forward looking statements
This news release may contain "forward-looking statements"
within the meaning of applicable Canadian securities laws. Examples
of forward-looking information in this news release includes but is
not limited to statements and information concerning the
Arrangement and Plan of Arrangement; the Meeting of the
Shareholders; any future intentions of the Company to de-list the
Common Shares from the TSX and cease to be a reporting issuer in
the applicable provinces of Canada. Forward-looking statements are
often, but not always, identified by the use of words such as
''seek'', ''anticipate'', ''contemplate'', ''target'', ''believe'',
''plan'', ''estimate'', ''expect'', and ''intend'' and statements
that an event or result ''may'', ''will'', ''can'', ''should'',
''could'' or ''might'' occur or be achieved and other similar
expressions. Forward-looking information by its nature requires
assumptions and involves known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or
achievements to be materially different from any future results,
performance or achievements expressed or implied by the
forward-looking information, and readers are cautioned not to place
undue reliance on such information. These statements are based on
expectations, estimates and projections as at the date of this news
release and are subject to a number of risks and uncertainties.
Should one or more of these risks or uncertainties materialize, or
should assumptions underlying the forward-looking information prove
incorrect, actual results, performance or achievement may vary
materially from those expressed or implied by the forward-looking
information contained in this news release. These risk factors
should be carefully considered and readers are cautioned not to
place undue reliance on forward-looking information, which is
current only as of the date of this news release. All subsequent
forward-looking information attributable to LeadFX herein is
expressly qualified in its entirety by the cautionary statements
contained in or referred to herein. LeadFX does not undertake any
obligation to release publicly any revisions to this
forward-looking information to reflect events or circumstances that
occur after the date of this news release or to reflect the
occurrence of unanticipated events, except as may be required under
applicable securities laws.
SOURCE LeadFX Inc.