PAW Signs Formal Agreement for Sale of Tantalum Assets
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 18, 2012) - Pacific Wildcat Resources Corp. (TSX VENTURE:PAW) ("PAW" or the "Company") is pleased to announce that it has entered into an agreement (the "Sale Agreement") with Muscadine Limited ("Muscadine") or its duly appointed Nominee, for the sale of 100% of the shares of Tantalum Mineração e Prospecção Limitada ("TMPL"), a 100% wholly owned Mozambique subsidiary of the Company, that owns the Muiane Tantalum mine and associated leases in northern Mozambique. Muscadine is the owner of the gemstone rights on all TMPL properties and will now acquire the tantalum rights. The transaction is scheduled to close no later than November 15, 2012, or such other date as may be agreed upon by the parties.
Key Terms of the Sale Agreement
Under the terms of the Sale Agreement, Muscadine will purchase the TMPL Shares and associated tantalum rights in consideration of the payment to PAW on closing of:
1) a cash payment of US $3 million, and
2) the transfer and delivery to PAW of an aggregate of 8,872,727 PAW shares currently owned by Muscadine.
Conditions of Closing
The closing of the transaction is subject to the satisfaction of certain conditions, including among others, the acceptance of the TSX Venture Exchange, the receipt of various regulatory approvals, if required.
Comment
PAW's President & CEO said "Now that we have closed on the acquisition of the 70% indirect interest in the Mrima Hill Niobium and Rare Earth project in Kenya, we feel it appropriate to concentrate our efforts on advancing the Mrima Hill project. Whilst we believe in a strong future for TMPL, given the current state of the capital markets and with a view to minimizing dilution of shareholders at current low equity prices, we believe the sale of the TMPL asset to finance ongoing activities at Mrima Hill is beneficial to the Company and its shareholders and we look forward to working with Muscadine to facilitate completion of the sale."
ON BEHALF OF THE BOARD OF DIRECTORS OF PACIFIC WILDCAT RESOURCES CORP.
Darren Townsend, President & CEO