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United States : QUIA RESOURCES agrees to sell San Lucas Gold Property to ENNERACT CORP.

Quia Resources Inc. has inked a deal with Enneract Corporation for the sale of its subsidiary, San Lucas Gold Corp, which holds the San Lucas gold property in Colombia, subject to approval of the TSX Venture Exchange.

The transaction is an arm's-length transaction and no finder's fee is payable in connection with the agreement. A former director of Quia has an interest in Enneract.

As per the terms of the agreement, Quia will get a number of common shares resulting in an equity ownership of 5% of Enneract, as well as a 2% net smelter return royalty (the "Royalty"), of which Enneract can buy back half for US $500,000.

In addition, Quia also has a right to participate in financings of Enneract to maintain its pro-rata position and a right of first refusal with respect to the sale or joint-venture of the property. The sale will result in a reduction in the Company's liabilities as of March 31, 2014 by $397,778.87. The purchaser of the subsidiary is acquiring the subsidiary including its liabilities, and therefore those liabilities will no longer be the obligation of Quia and will no longer be part of the Company's consolidated financial statements.

Conditions in Colombia and in the financial markets have made it challenging to continue to advance the San Lucas project, said Mr. Banks, Quia's CEO, The sale significantly improves our balance sheet, allows us to further streamline our operation, and enables us to focus on our agromineral strategy which is rapidly developing. We also maintain exposure to the upside potential of San Lucas through our equity ownership in Enneract, the Royalty and our other rights.

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Publication:Mena Report
Date:Jun 24, 2014
Words:287
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