Southern Arc Amends and Closes Sale of Taliwang Project
July 24, 2014 – Vancouver, BC – Southern Arc Minerals (TSX-V: SA, OTCQX: SOACF) (“Southern Arc”) today announced that the Company has amended the sale agreement and closed the sale of its interest in the Taliwang project. Pursuant to the terms of the agreement, Southern Arc’s wholly-owned subsidiary Indotan Sumbawa Pte. Ltd. has sold its 90% share in the Indonesian company that owns the Taliwang project (remaining 10% held by the West Sumbawa Regency Government) to a prominent Indonesian businessman (the “Purchaser”). The Purchaser has paid US$1,000,000 and granted a 5% net smelter royalty (“NSR”) to Southern Arc. The Purchaser has the option to buy back 3% of the NSR by paying Southern Arc US$3,000,000.
The Purchaser is required to make additional payments to Southern Arc to fulfill the agreed purchase price. The Purchaser will pay Southern Arc 40% of gross revenue generated from the Taliwang project, after payment of the Southern Arc NSR, until the aggregate amount of such payments equals US$750,000. Alternatively, the Purchaser has the option of making a one-time payment of US$600,000 if the payment is made before January 12, 2015.
“We are pleased to have completed the Taliwang sale in today’s challenging market conditions, particularly as the net smelter royalty and buy back terms still allow Southern Arc to participate in the development and future success of the Taliwang project,” said John Proust, Chairman & Chief Executive Officer of Southern Arc.
On behalf of the Board of Southern Arc Minerals Inc.
Chairman & Chief Executive Officer
About Southern Arc
Southern Arc Minerals Inc. is a Canadian mineral exploration company focused on gold and copper-gold exploration. The Company holds two exploration properties in Indonesia: West Lombok, a resource-stage property with several gold-rich copper porphyry and epithermal gold vein prospects, and East Elang, a grassroots exploration property that will be advanced in partnership with Vale International SA. Southern Arc also owns 26% and is joint operator of Eagle Hill Exploration, which owns the high-grade Windfall Lake Gold Project in Quebec, Canada. More information is available at www.southernarcminerals.com.
Vice President, Communications & Investor Relations
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