October 23, 2013 – Vancouver, British Columbia. Huakan International Mining Inc. (“Huakan” or the “Company”) today provided an update with respect to the defaults of Gold Crown LLC, AMT Industries Canada Inc. (“AMT”) and Mineral Invest International MII AB (collectively, the “Debtors”) in performing their respective obligations under the Letter Agreement dated March 26, 2013 (the “Letter Agreement”) and the Forbearance Agreement dated September 30, 2013 (the “Forbearance Agreement”) (see the News Releases of the Company dated March 28, 2013, July 31, 2013, August 19, 2013 and October 8, 2013).
According to the Forbearance Agreement, the Debtors were obligated to make ten installment payments to the Company, totaling $5.15 million and to provide certain financial information to the Company. The Debtors did not make the first two installment payments of $100,000 and $150,000 to the Company, which were due on September 30, 2013 and October 7, 2013, respectively. The Debtors also did not provide all of the required financial information to the Company by the due date of October 7, 2013. The above constituted termination events within the meaning of the Forbearance Agreement.
As a result, the Company resumed its application for the appointment of a Receiver in the Supreme Court of British Columbia (the “Court”) against the Debtors. On October 22, 2013, the Court has granted an order of appointing Grant Thornton Limited as Receiver over all of the assets and undertakings of AMT. The Receiver has been authorized to, among other things, sell the assets and undertakings of AMT, including the Greenwood Gold Property.
For further information please contact:
Fiona Leung, Chief Financial Officer at (604) 694-2344
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CAUTIONARY STATEMENTS REGARDING FORWARD LOOKING INFORMATION
Certain of the statements made and information contained herein may contain forward-looking statements or forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or forward-looking information include, but are not limited to, statements concerning the Greenwood Gold Property. Forward-looking statements or information include statements regarding the expectations and beliefs of management. Often, but not always, forward-looking statements and forward-looking information can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements or information include, but are not limited to, statements or information with respect to known or unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information.
Forward-looking statements or information are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements or information, including, without limitation, risks and uncertainties relating to: completion of announced transactions, history of losses; requirements for additional capital; dilution; loss of its material properties; interest rates increase; global economy; limited history of production; speculative nature of exploration activities; periodic interruptions to exploration, development and mining activities; environmental hazards and liability; industrial accidents; failure of processing and mining equipment; labour disputes; supply problems; commodity price fluctuations; uncertainty of production and cost estimates; the interpretation of drill results and the estimation of mineral resources and reserves; legal and regulatory proceedings and community actions; title matters; regulatory restrictions; permitting and licensing; volatility of the market price of common shares; insurance; competition; hedging activities; currency fluctuations; and loss of key employees. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements or information. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information. The Company disclaims any intent or obligation to update forward-looking statements or information except as required by law, and you are referred to the full discussion of the Company’s business contained in the Company’s reports filed with the securities regulatory authorities in Canada.