West Vancouver, British Columbia - March 5, 2015 - Cobra Venture Corporation (“Cobra” or the “Company”) is pleased to announce that it has entered into a purchase agreement (the “Purchase Agreement”) dated for reference February 24, 2015, with International Bethlehem Mining Corp. (“International Bethlehem”) and Magnum Goldcorp Inc. (“Magnum”), pursuant to which Magnum has agreed to sell and Cobra has agreed to purchase one half of Magnum’s 51% option interest in certain properties owned by International Bethlehem.
The Option Agreement and Description of the Properties
International Bethlehem holds a 100% undivided interest in 19 crown granted mineral claims known as the ‘LH Property’ located in the Kootenay Land District, Slocan Mining Division, British Columbia. The LH Property is subject to a 1% net smelter return royalty in favour of Andaurex Industries Inc. (“Andaurex”) (which royalty reduces to a 0.5% net smelter return once royalties of $350,000 have been paid to Andaurex) and such royalty can be purchased from Andaurex for $1.2 million at any time up until December 31, 2015.
International Bethlehem also holds a 100% undivided interest in 4 mineral claims known as the ‘Willa Property’ located in the Slocan Mining Division, British Columbia. The Willa Property is subject to a 1% net smelter return royalty (together with the 1% LH Property net smelter return royalty, the “NSR Royalty”) in favour of Michael Hudock, Peter Leontowicz and William Wingert (the “Vendors”) (which royalty reduces to a 0.5% net smelter return once royalties of $500,000 have been paid to the Vendors) and such royalty can be purchased from the Vendors for $3 million at any time up until July 15, 2015. International Bethlehem has staked 3 additional mineral claims located near the Willa Property (such claims, together with the Willa Property and the LH Property, the “Properties”).
By option agreement dated September 6, 2012 (the “Magnum Option Agreement”) Magnum was granted an option by International Bethlehem to acquire a 51% interest (“Option”) in the Properties. Under the Option, Magnum agreed to incur expenditures on the Properties totaling $500,000 and to issue 3,000,000 shares to International Bethlehem. [See news release of Magnum (TSXV: MGI) dated September 21, 2012 for further information on the Option.]
Pursuant to the terms of the Purchase Agreement, Cobra will purchase one half (25.5%) of Magnum’s 51% interest in the Properties in exchange for a $300,000 payment. Magnum is required to use $200,000 of this payment to complete certain expenditures on the Properties in accordance with the Magnum Option Agreement and is required to use reasonable commercial efforts to fulfil its obligations under the Magnum Option Agreement such that the Option becomes exercised. Upon exercise by Magnum of the Option in accordance with the Magnum Option Agreement, Cobra will acquire 25.5% of the legal and beneficial interest in and to the Properties.
Upon Magnum exercising the Option, a joint venture will be deemed to have been formed between Magnum, International Bethlehem and Cobra, the terms of which will be negotiated in good faith and finalized upon the full exercise of the Option.
For further information, contact Mr. Clive Shallow, Shareholder Communications, at 604-922 2030.
Cobra Venture Corporation
Daniel B. Evans, President and CEO
Canadian Toll Free: 1-888-888-9122
US Toll Free: 1-888-888-9123
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 includes certain statements that may be deemed “forward-looking statements” within the meaning of applicable securities legislation. All statements, other than statements of historical facts, that address such matters as future exploration, exploration activities, potential resources and events or developments that the Company expects, are forward looking statements and, as such, are subject to risks, uncertainties and other factors of which are beyond the reasonable control of the Company. Such statements are not guarantees of future performance and actual results or developments may differ materially from those expressed in, or implied by, this forward-looking information. Factors that could cause actual results to differ materially from those in forward-looking statements include such matters as market prices, exploitation and exploration results, continued availability of capital and financing, and general economic, market or business conditions. Any forward-looking statements are expressly qualified in their entirety by this cautionary statement. The information contained herein is stated as of the current date and subject to change after that date and the Company does not undertake any obligation to update publicly or to revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.