Lucky Minerals Provides Progress Report on Ecuadorian Mining Acquisition
For Immediate Release
NEWS RELEASE
LUCKY MINERALS PROVIDES PROGRESS REPORT ON ECUADORIAN MINING ACQUISITION
Vancouver, B.C. April 11, 2018 – Lucky Minerals Inc. (TSX.V: LJ) (OTCQB: LKMNF) (FRA:8LM) (“Lucky” or the “Company”) is pleased to announce that, further to the Company’s news release dated as of February 20, 2018, it is on track to acquire 100% of Goldmindex S.A. (“Goldmindex”), a private Ecuadorian company, by way of a share exchange between Lucky and Monterra Resources S.A. (“Monterra”). Lucky will acquire all of the issued and outstanding shares of Goldmindex from Monterra and one individual (collectively the “Vendors”). in exchange for common shares of the Company to be issued to the Vendors (the “Transaction”). Robert Rosner, Lucky Minerals’ CEO commented, “Although the Transaction has taken longer than originally expected mainly due to administrative delays in Ecuador and due diligence proceedings, I can confirm that the acquisition process is on track to be completed during the month of April, the whole being subject to regulatory and TSX Venture Exchange’s approval on the Transaction”.
As part of the due diligence process, Lucky has received positive reports from geological site inspections, which support the Company’s view that this acquisition is set to provide the Company with several development opportunities in the heart of a prolific Ecuadorian mineral belt.
Lucky is gaining Goldmindex’s 100% interest in a 54,985 hectare (550 km2) contiguous property position comprising 12 individual mineral concessions located 50km south of Cuenca, the capital of Azuay province in Ecuador (the “Fortuna Property”). As previously described, the Fortuna Property is a prospective land package located in the heart of a prolific Ecuadorian mineral belt near a number of significant gold and copper discoveries made during the last 20 years.
Due Diligence
Following signing of the binding letter of intent between Lucky and Monterra on February 8, 2018 (the “LOI”), Lucky and its representatives undertook a due diligence review of Goldmindex, Monterra, and the Fortuna Property, with the intention of signing a definitive agreement following receipt of satisfactory results from due diligence by the Company (the “Definitive Agreement”). Lucky and Monterra further agreed to amend the LOI in order to extend the due diligence period and the contemplated signing date of the Definitive Agreement to April 30, 2018 (the “Due Diligence Period”).
Initial and Second Loans
Under the terms of the LOI, Lucky agreed to advance to Goldmindex the amount of US$253,000 (the “Initial Loan”) to be used to honor immediate concession payment obligations for the year 2017 for six concessions out of the twelve concessions comprising the Fortuna Property, where these payments were outstanding. Lucky also agreed to advance an amount of US$531,000 (the “Second
202-905 W. Broadway Street, Vancouver, BC V5Z 4M3 | T: (866) 924-6484
Loan”) to be used to pay concession payment obligations for all 12 concessions comprising the Fortuna Property for 2018.
Following due diligence findings and in order to honor payment of the 2018 patent rights on the 12 concessions comprising the Fortuna Property, Lucky has agreed to already advance the amount of the Second Loan to Goldmindex, such Second Loan being fully secured by way of a pledge granted by the Vendors on the shares of Goldmindex to the sole benefit of Lucky. The payment of the concession fees due on six concessions for 2017 is subject to a process that involves the government firstly establishing a ‘cure period’ for the payment to be made. Consequently, the payment of the outstanding 2017 concession fees will be subject to this process which we understand will be put in place in the coming weeks.
If, during the Due Diligence Period, Lucky should decide not to complete the Transaction, Goldmindex will have 45 days from the date Lucky has given formal notice to repay the Second Loan. Failure to do so will result in Lucky receiving the Goldmindex shares that are currently being held in a fiduciary trust to the benefit of Lucky as a security for the Second Loan.
Closing
Once satisfactory due diligence has been completed to the satisfaction of Lucky, the Definitive Agreement with Vendors will be signed and then, as soon as all conditions precedent to completion of the Transactions are satisfied, the Transaction will close. the Company anticipates that this will happen before the end of April.
About Lucky Minerals:
Lucky Minerals Inc.’s strategy is to acquire and advance property interests located in mineral districts proven to have world class potential, primarily for gold and copper. Lucky’s Emigrant Project is focused on the exploration and development of several targets located in the core of the mineralized and intensely altered Emigrant Mining District, South-central Montana. Lucky Minerals shares trade on the TSX Venture Exchange under the trading symbol LJ and through the OTCQB under the symbol LKMNF.
ON BEHALF OF THE BOARD
“Robert Rosner”
Chief Executive Officer
Contact Information: For more information please contact Robert Rosner at (866) 924-6484 or
NEITHER 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.
202-905 W. Broadway Street, Vancouver, BC V5Z 4M3 | T: (866) 924-6484