VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 06/16/16 -- Western Pacific Resources Corp. ("Western Pacific" or the "Company") (TSX VENTURE: WRP) is pleased to provide the following update on the Company's activities.
Deer Trail Mine Foreclosure
Quintana WRP Holding Company LLC ("Quintana") has accepted the Deer Trail Mine in lieu of all debts owed to Quintana by Western Pacific. In a press release dated January 27, 2016 the Company disclosed that it had entered into a Stipulation Agreement with Quintana WRP Holding Company LLC ("Quintana"), and as part of that agreement Quintana would immediately begin the foreclosure sale of the Company's Deer Trail Mine ("Property"). In addition the Company would cooperate and facilitate the foreclosure process and if Quintana was the successful bidder at the sale after bidding no more than the amounts owed on the Secured Loans and Quintana obtains the Property free and clear of liens, then Quintana would accept the Property in full satisfaction of the amounts owed to it by the Company. On March 7, 2016 a foreclosure sale occurred whereby Quintana was the successful bidder and the Company is now in the process of transferring the property to Quintana.
Sale of Mineral Gulch
Pursuant to an asset purchase agreement between the U.S. subsidiaries of Western Pacific and Pilot Gold Inc. ("Pilot Gold") the company has sold 100% of its interest in the Mineral Gulch Property located in Cassia County, Idaho.
Under the terms of the agreement, Western Pacific sold its interest in Mineral Gulch to Pilot Gold in exchange for US$800,000 and 300,000 common shares of Pilot Gold as well as a 0.5% net smelter return ("NSR") royalty on future sales or disposition of all minerals production from the property.
Return of Rock Springs to Western Pacific
In 2014 Western Pacific entered into a Mining Lease with Purchase Option Agreement with CR Rock Springs Inc. ("CR Rock Springs") on its Rock Springs project in Nevada. The agreement provided for option payments and work commitments and an option to purchase the property for $500,000. On June 3, 2016 CR Rock Springs terminated the Purchase Option Agreement.
Commenting on recent developments, Michael Callahan, President and CEO of Western Pacific, noted: "while the markets have been extremely difficult over the past few years we are pleased that we were able to, negotiate a fair agreement with Quintana that satisfies our liability to them while monetizing the Mineral Gulch property. We have Rock Springs back in our portfolio and are now focusing on evaluating assets that we believe will provide significant value to our shareholders moving forward".
About Western Pacific Resources Corp.
Western Pacific is a publicly traded resource exploration company focused on advancing a portfolio of precious metal properties in the Western United States. The Company's shares trade on the TSX Venture Exchange under the symbol "WRP".
ON BEHALF OF THE BOARD
Michael Callahan, President & CEO
For more information visit the Company's website at www.westernpacificresources.com.
Neither the 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.
Certain statements contained in this press release constitute forward-looking statements within the meaning of Canadian securities legislation. Forward-looking statements contained in this news release include, without limitation, statements in respect of the expected closing of the proposed sale of the Mineral Gulch property. These statements relate to future events, business prospects or opportunities and product development. All such statements other than statements of historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect, "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions. The Company believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. Actual results and developments may differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this news release. The Company disclaims any duty to update any of the forward-looking statements after the date of this news release to conform such statements to actual results or to changes in the Company's expectations except as otherwise required by applicable law.
Western Pacific Resources Corp.
Fiona Grant Leydier