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QIA

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0.00 (0.00%)
Share Name Share Symbol Market Type
TSXV:QIA TSX Venture Common Stock
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 0 -

Quia Announces Sale of San Lucas Gold Property

19/06/2014 7:00pm

Marketwired Canada


Quia Resources Inc. ("Quia" or the "Company") (TSX VENTURE:QIA) announces that
it has entered into an agreement with Enneract Corporation ("Enneract"), a
private Panamanian company, to sell its subsidiary, San Lucas Gold Corp, which
holds the San Lucas gold property in Colombia, subject to approval of the TSX
Venture Exchange. The transaction is an arm's-length transaction and no finder's
fee is payable in connection with the agreement. A former director of Quia has
an interest in Enneract. 


Under the terms of the agreement, Quia will receive a number of common shares
resulting in an equity ownership of 5% of Enneract, as well as a 2% net smelter
return royalty (the "Royalty"), of which Enneract can buy back half for US
$500,000. In addition, Quia has a right to participate in financings of Enneract
to maintain its pro-rata position and a right of first refusal with respect to
the sale or joint-venture of the property. The sale will result in a reduction
in the Company's liabilities as of March 31, 2014 by $397,778.87. The purchaser
of the subsidiary is acquiring the subsidiary including its liabilities, and
therefore those liabilities will no longer be the obligation of Quia and will no
longer be part of the Company's consolidated financial statements.


Mr. Banks, Quia's CEO, commented: "Conditions in Colombia and in the financial
markets have made it challenging to continue to advance the San Lucas project.
The sale significantly improves our balance sheet, allows us to further
streamline our operation, and enables us to focus on our agromineral strategy
which is rapidly developing. We also maintain exposure to the upside potential
of San Lucas through our equity ownership in Enneract, the Royalty and our other
rights."


Debenture Closing 

The Company has received all required approvals for the closing of the first
tranche of its secured convertible debenture financing as described in its press
release dated June 4, 2014, and the closing of the first tranche in the amount
of $340,286.30 has been completed.


Investor Relations Agreement 

The Company has engaged Investor Cubed to provide the following services: 

(a) manage communications with investors, brokers and other investment
professionals; (b) organize and attend meetings with investment dealers and
investment advisors to present the Company and help to develop relationships on
the Company's behalf; (c) contact investment advisors by telephone to generate
awareness; (d) distribute the Company's news releases to its database; (e) make
recommendations about the strategy, content and design of the Company's investor
presentation materials; (f) make recommendations about the content, design and
functionality of the investor relations segment of the Company's website; (g)
assist with financing opportunities; and (h) provide general consulting on
investor communications and capital markets.


The term of the agreement will be for a period of 12 months commencing June 17,
2014 (the "Commencement Date") and expiring on June 16, 2015, subject to the
right of the Company to terminate the agreement on 30 days notice after December
16, 2014. The Company will pay a fee of $5,000 per month and issue 150,000 stock
options to Investor Cubed. Each option will be exercisable to purchase one
common share of the Company. Subject to the options being issued under the terms
and conditions of the Company's stock option plan, the options will be issued
quarterly in four tranches of 37,500 each with the first tranche being issued as
of the Commencement Date, and with the exercise price per share for the options
being set at $0.10. This agreement is subject to the approval of the TSX Venture
Exchange.


About Quia Resources Inc. 

Quia Resources is a mineral exploration and development company that is focused
on agrominerals, including the Murdock Mountain direct application phosphate
project in Nevada. The Company is also actively evaluating additional business
opportunities in the agricultural sector.


Forward-Looking Statements

This press release contains or refers to forward-looking information based on
current expectations that involve a number of business risks and uncertainties.
Factors that could cause actual results to differ materially from any
forward-looking statement include, but are not limited to, delays in obtaining
or failures to obtain required governmental, environmental or other project
approvals, political risks, uncertainties relating to the availability and costs
of financing needed in the future, changes in equity markets, inflation, changes
in exchange rates, fluctuations in commodity prices, delays in the development
of projects and the other risks involved in the mineral exploration and
development industry. Forward-looking statements are subject to significant
risks and uncertainties, and other factors that could cause actual results to
differ materially from expected results. Readers should not place undue reliance
on forward-looking statements. These forward-looking statements are made as of
the date hereof and the Company assumes no responsibility to update them or
revise them to reflect new events or circumstances other than 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.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Quia Resources Inc.
Yannis Banks
Chief Executive Officer
(416) 777-6169
ybanks@foundationmarkets.com

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