SYDNEY, AUSTRALIA July 26, 2017 – Aguia Resources Limited (“Aguia”, or the “Company”) is pleased to announce that the Company has repurchased a Net Smelter Royalty (“NSR”) for cancellation. The NSR was granted to Sulliden Mining Capital Inc. (“SMC”) on November 3, 2014, at which time SMC invested AUD 2,000,000 in exchange for 40 million ordinary shares and a 1% NSR in respect of the future production at Aguia’s Três Estradas phosphate project.
Under the original terms of the NSR agreement, Aguia had the option to buy back the NSR for cancellation in exchange for USD 1,000,000 up until November 3, 2017. After analysing the cost of paying the NSR based on a 14-year mine life, management and the Board of Directors determined that the NSR buyback has substantially greater value and cancellation of the NSR is beneficial to the Company’s shareholders and the economics of the Três Estradas project. The NSR value has potential to further increase with any new resources identified at the project.