First Mining Finance Completes Sale of Three Mexican Silver Assets to Silver One Resources
September 27, 2016
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sept. 27, 2016) - First Mining Finance Corp. (TSX VENTURE:FF)(OTCQX:FFMGF) ("First Mining" or the "Company") is pleased to announce that it has completed its previously announced transaction with Silver One Resources Inc. ("Silver One") by selling all of the issued and outstanding shares of one of its wholly-owned subsidiaries to Silver One. As a result, Silver One has acquired from First Mining the following three silver assets located in Mexico: the Peñasco Quemado, La Frazada and Pluton properties (collectively, the "Properties").
As consideration for this purchase, Silver One has issued six million common shares of Silver One to First Mining. In addition, First Mining has retained a 2.5% net smelter return ("NSR") royalty on the Properties, and Silver One may buy back 1.5% of the NSR by paying US$1 million to First Mining.
Keith Neumeyer, Chairman of First Mining stated, "We are pleased to have completed this transaction with Silver One. We have confidence in Silver One's management team and are looking forward to them advancing these under-explored properties further and unlocking their true value. Through the equity position that we now have in Silver One, along with our residual royalty interest in these three properties, our company will reap the benefits from continued exposure to the silver sector, and any future upside as sentiment in the mining sector continues to improve."
ABOUT FIRST MINING FINANCE CORP.
First Mining is a mineral property holding company whose principal business activity is to acquire high quality mineral assets with a focus in the Americas. The Company currently holds a portfolio of 25 mineral assets in Canada, Mexico and the United States with a focus on gold. Ultimately, the goal is to continue to increase its portfolio of mineral assets through acquisitions that are expected to be comprised of gold, silver, copper, lead, zinc and nickel.
ON BEHALF OF THE BOARD OF
FIRST MINING FINANCE CORP.
This press release includes certain "forward-looking information" and "forward-looking statements" (collectively "forward-looking statements") within the meaning of applicable Canadian and United States securities legislation including the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements are frequently, but not always, identified by words such as "expects", "anticipates", "believes", "intends", "estimates", "potential", "possible", and similar expressions, or statements that events, conditions, or results "will", "may", "could", or "should" occur or be achieved. Actual future results may differ materially. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements reflect the beliefs, opinions and projections on the date the statements are made and are based upon a number of assumptions and estimates that, while considered reasonable by the respective parties, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Such statements include, without limitation: the successful advancement of the Properties by Silver One; any future improvements to the mining sector; increases to the price of silver and other commodities; any future benefits that may be realized by First Mining as a result of, or in connection with, the transaction.
Many factors, both known and unknown, could cause actual results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements and the parties have made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation: the risk that the TSX Venture Exchange will not approve the transaction and the risk that Silver One will be unable to advance the Properties. Readers should not place undue reliance on the forward-looking statements and information contained in this news release. First Mining assumes no obligation to update such forward-looking statements or information, should they change, except as required by law.
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.