Silver Elephant Mining Corp. (TSX: ELEF) (OTCQX: SILEF) (FSE: 1P2) (“Silver Elephant” or “the Company”) is pleased to announce the closing of sale of the Company’s Titan vanadium-iron-titanium project (“Titan Project”) in Ontario to Cachee Gold Mines Corp. (“Cachee”) and Cachee’s subsidiary Osprey Advanced Materials Corp.
To acquire the Titan Project, Cachee paid Silver Elephant an aggregate of approximately $1.29 million, comprised of the following: i) $231,000 in cash; and ii) issued 13,283,801 common shares in the capital of Cachee (“Shares”), valued at a price of $0.08 per Share, being the last financing price of Cachee. In addition, Cachee granted to Silver Elephant a net smelter royalty (“NSR”) equal to 0.5% applicable after the commencement of commercial production if the V205 Flake 98% price per pound exceeds US$12.00/lb. NSR may be purchased back by Cachee at any time for $500,000 in cash. The number of Shares issued to Silver Elephant in connection with the transaction, equals 19.99% of total issued and outstanding Shares as of the date hereof. The Shares issued to Silver Elephant are subject to certain contractual and regulatory resale restrictions. Furthermore, Cachee granted to Silver Elephant a pre-emptive right for a period of 18 months from the closing date to participate in future equity financings of Cachee to maintain its 19.99% interest in Cachee.
John Lee, Chairman and CEO of Silver Elephant Mining Corp. commented:
“Working with Alex and his team at Cachee has been a top-notch experience. We are confident Cachee will make great strides with Titan Project.”
About the Titan Project
The Titan vanadium-iron-titanium project is located at Flett and Angus Townships, 120 kilometres northeast of Sudbury, Ontario. The Titan Project consists of 262 contiguous hectares comprising 17 patented claims, with access to water, roads and electrical power.
About Cachee Gold Mines Corp.
Cachee Gold Mines Corp. is a private mineral exploration company headquartered in Toronto. Cachee’s leadership team is comprised of seasoned individuals with a track record in mining, technology, life sciences and finance.
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