Suburban Minerals Corp. Signs Diamond Concession Rights Acquisition Agreement
30.01.2014 | Marketwire
HENDERSON, Jan 30, 2014 - Suburban Minerals Corp. (OTC Pink: SUBB) announced today the signing of the acquisition agreement to acquire the exploration, production and commercialization rights to a Diamond Concession in the Republic of Central Africa. According to the agreement, the company will acquire the Diamond Concession Rights located in the Republic of Central Africa for a total of 300 million restricted common shares of Suburban Minerals at a price of $0.20 and 10 million convertible preferred shares at a price of $10.00, establishing the acquisition price at $160 million USD. Each Preferred share is convertible into 50 common shares of the company upon Suburban Minerals receiving financing in the amount of $300 million USD from the Intergovernmental Organization.
In addition to the issuance of common and preferred shares, Suburban Minerals will pay a royalty of 2.5% of gross profits to the Intergovernmental Organization and 10% of the operational budget up to a maximum payment of $500,000 yearly.
The company expects to complete due diligence, satisfy all regulatory requirements and close the acquisition on or before February 28, 2014.
"This is another significant milestone for our company, our shareholders and stakeholders," said Tim Sperling, President & CEO of Suburban Minerals Corp. "This acquisition is the stepping stone for the creation of sustainable value."
About Suburban Minerals Corp.
Suburban Minerals Corp. is a publicly traded company seeking to acquire and operate producing mines in challenging world economies, to provide the highest return on investments and create long term sustainable value to its shareholders.
Safe Harbor Statement:
This press release contains statements, which may constitute forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of Suburban Minerals Corp., members of their management, and assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements.
Contact
Suburban Minerals Corp.
Tim Sperling, President & CEO
Email: info@suburban-minerals.com
Phone: 702-664-1334