Salazar Announces Funding Agreement to Advance Curipamba to Production
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/26/13 -- Salazar Resources Ltd. (TSX VENTURE: SRL)(FRANKFURT: CCG) (the "Company") is pleased to announce an investment and participation agreement (the "Agreement") with Urion Mining International BV, a wholly owned subsidiary of Trafigura Beheer B.V. (together referred to as "Urion"), a privately held international commodity trading and logistics company. Urion will provide funding to assist the Company with the advancing of the El Domo Property at the Curipamba Project to the production stage.
The Agreement provides for a series of investments with the first being a private placement of 2,500,000 units of the Company ("Units") at a price of $0.40 per Unit for total gross proceeds of $1,000,000. Each Unit consists of one common share of the Company and one-half of a share purchase warrant. Each full warrant entitles the holder to purchase an additional common share of the Company for a period of 18 months at a price of $0.50 per share. The net proceeds from this financing are to be used for working capital purposes. This transaction has been accepted by the TSX Venture Exchange and the Company has issued 2,500,000 shares and 1,250,000 warrants. The shares and warrants issued and the shares which underlie the warrants have a hold period expiring July 23, 2013.
Under the Agreement Urion undertakes to provide additional financing of $1,000,000 through a further private placement of common shares. This additional private placement will occur only when an engineering firm has been engaged to prepare a Preliminary Economic Assessment ("PEA") on the El Domo property at the Curipamba Project. This financing will be priced at prevailing market price once all conditions precedent are met. The net proceeds from this subsequent financing are to be used solely to fund tenure holding costs, costs of the engineering study and basic operating expenses in Ecuador incurred by the Company's wholly owned subsidiary, Curimining S.A. ("Curimining"). The sole asset of Curimining is the Curipamba Project.
On receipt of the engineering study, which the Company anticipates in approximately eight months, Urion may elect to provide additional financing through an investment in the Company or in its wholly owned Ecuadorian subsidiary, Curimining. In return for additional financing, beyond the $2 million referred to in this news release, on terms and conditions to be determined, Urion can earn a maximum 35% interest in either the Company or Curimining. Under the Agreement Urion is committed to provide financing for up to 50% of the total project costs to bring El Domo into production. Urion also undertakes to assist the Company in obtaining the balance of the funding required to bring El Domo into production. The Agreement grants Urion off take rights to purchase all production from future operations.
The Company will have responsibility for all administrative activities related to obtaining all the necessary permits from the Ecuadorian State in order to advance the project to the exploitation phase.
Mr. Salazar comments, "We are very enthusiastic about this agreement which marks a new stage in the life of the Company that will be of great benefit for both companies as well as for our shareholders. I believe with this new prestigious and experienced partner, we will have great support for future mining projects like El Domo."
ON BEHALF OF THE BOARD OF SALAZAR RESOURCES LIMITED
Fredy Salazar, President & CEO
Salazar Resources Limited
About Salazar Resources Limited
Salazar Resources Ltd. is a publicly-listed (TSX VENTURE: SRL)(FRANKFURT: CCG) mineral resource company engaged in the exploration and development of new highly prospective areas in Ecuador. Led by a senior Ecuadorian management team and most notably by its namesake Fredy Salazar, this team has been instrumental in other major discoveries throughout Ecuador.Being based in Ecuador, thus have thorough knowledge of local human and environmental issues, gives the company a strategic advantage, enabling it to complete exploration at a rapid pace. With an excellent property portfolio (3 projects- 42,900 hectares), good geopolitical positioning and a number of strategic corporate and financial partnerships, Salazar has positioned itself to be a strategic player in Ecuador and throughout South America.
About Trafigura Beheer B.V.
Trafigura is one of the world's leading international commodity traders, specializing in the oil, minerals and metals markets, with 81 offices in 56 countries in Europe, Africa, Asia, Australia, and North, Central and South America. The Group's primary trading businesses are the supply and transport of crude oil, petroleum products, renewable energies, coal, refined metals, ferrous and non-ferrous ores and concentrates. Trafigura is the world's second largest independent non-ferrous trading company and the third largest independent oil trader.
Founded in 1993, the company is owned by its founding shareholders and senior management. It has achieved substantial growth in recent years, growing turnover from USD18 billion in 2004 to USD120.4 billion in 2012.
This press release may contain certain forward-looking information. All statements included herein, other than statements of historical fact, is forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in the company's disclosure documents on the SEDAR website at www.sedar.com. The company does not undertake to update any forward-looking information except in accordance with applicable securities laws.
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 news release.
Contacts:
Salazar Resources Ltd.
Investor Relations
647-925-8981
info@salazarresources.com
www.salazarresources.com
Trafigura Beheer B.V.
Global Press Office
+44 207 009 1708
media@trafigura.com
www.trafigura.com
