Copper Reef Mining Corporation (CNSX: CZC) (The "Company") wishes to announce that it has purchased a 2% NSR Royalty from Vista Gold Corp. held on 16 of the Company's 33 properties for a payment of $100,000 in cash and the issuance of 1,000,000 shares of Copper Reef. The 1,000,000 shares issued to Vista have a hold period of three years (expiring on June 26, 2015). The 2% NSR covering 16 of Copper Reef Properties totalled 14,300 hectares on 166 claims. The original buy back agreement was that 1% of the 2% NSR could be purchased for $1,000,000. This purchase removes the 2% NSR completely.
Copper Reef views this transaction as a key component in the restructuring of its large land position removing royalty burdens on the properties which have hindered optioning out certain properties to other players. This purchase is part of Copper Reef's strategic plan to either remove underlying agreements on its properties or to purchase additional royalties on key properties.
Copper Reef will use part of the funds from payments made to Copper Reef by the Manitoba government as part of their incentive MEAP grant and cash in lieu programs to cover the purchase. In addition, this year Copper Reef has received approval, as part of Manitoba's MEAP grants, for $84,000 on its North Star - Gold Rock Property in Snow Lake.
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