Junior in 'exclusive negotiations' with major mining company
Aston Bay Holdings (CVE:BAY), A TSX-traded company focused on a copper and zinc prospects in Nunavut, is negotiating a joint venture with a mining major.
Announcing the period of exclusivity today in a press release, Aston Bay Holdings traded up to 25 cents at 11:49AM EDT. The company says the unnamed major has a market capitalization in excess of US$10 billion.
"Aston Bay's ability to attract the interest of a major mining company reflects the technical merit of the Storm project," said Bruce Counts, Aston Bay's COO. "We are eager to conclude the MOU and begin the task of advancing the property in partnership with the Major."
Aston Bay Holdings' administrative office is in Vancouver, Washington.
Here is the news release:
Aston Bay Holdings Enters into Period of Exclusive Negotiations with a Major Mining Company
Vancouver, British Columbia – May 26, 2014 – Aston Bay Holdings Ltd. (TSX-V: BAY) (“Aston Bay” or the “Company”) is pleased to announce that it has entered into an agreement (the “Exclusivity Agreement”) for a period of exclusivity (the “Exclusivity Period”) with a major mining company with a public market capitalization in excess of US$10 billion (the “Major”). The Exclusivity Period will last until the execution of an earn-in agreement and/or a Memorandum of Understanding (“MOU”) or June 30, 2014, whichever is earlier. The Exclusivity Agreement is an initial step towards the proposed MOU to form a joint venture on the Storm Copper and Seal Zinc projects (“Storm”).
Under the terms of the Exclusivity Agreement, Aston Bay will provide to the Major all information relevant to the Storm project, and arrange for a site visit and tour of Storm. Aston Bay also agrees not to invite or facilitate any discussions with third parties with respect to Storm and Aston Bay’s assets and shares in general, with certain exceptions. In consideration of Aston Bay entering into the Exclusivity Agreement, the Major will pay to the Company a fee of $50,000 for the Exclusivity Agreement, an amount that will be counted towards the Major’s exploration expenditures should an MOU be completed. The fee is not refundable to the Major in the event an MOU is not completed.
“Aston Bay has been actively seeking a partner to advance the Storm project, and we are excited to have attracted the interest of a major mining company with a track record of successfully developing and operating mines,” stated Benjamin Cox, President and CEO of Aston Bay. “Our discussions with the Major have advanced to the stage that both parties felt it was appropriate to enter into an Exclusivity Agreement in order to negotiate and document the final terms of the MOU.”
The complete terms and conditions of the potential MOU are still being negotiated, and there is no assurance that the MOU will be successfully concluded. In addition, the final terms and conditions of the MOU will be subject to approval of the Boards of Directors of Aston Bay and the Major and the applicable regulatory authorities.
“Aston Bay’s ability to attract the interest of a major mining company reflects the technical merit of the Storm project,” said Bruce Counts, Aston Bay’s COO. “We are eager to conclude the MOU and begin the task of advancing the property in partnership with the Major.”
About Aston Bay Holdings
Aston Bay Holdings Ltd. (TSX-V: BAY) is a publicly traded mineral exploration company focused on the 345,033-acre Storm Property located on northwest Somerset Island, Nunavut. The property hosts the Storm Copper and Seal Zinc prospects. Aston Bay holds the right to earn or buy up to a 100% undivided interest in the Storm Property from Commander Resources Ltd. (TSX-V: CMD).
CORRECTION: Original story implied that the Aston Bay Holdings is based in British Columbia. Company's administrative office is in Vancouver, Washington.