Salazar Resources Ltd. (the "Company") provides an update on the letter-of-intent ("LOI") with Guangshou Group Co. Ltd. ("Guangshou"), a privately-held Chinese international mining conglomerate, for a joint venture to develop the Curipamba Project.
Pursuant to the LOI the Company has been working to complete a private placement financing of 4,545,455 units (a "Unit"), at a price of $0.22 per Unit, for gross proceeds of $1,000,000. Each Unit consists of one common share (a "Share") of the Company and one-half of one share purchase warrant (a "Warrant"). Each whole Warrant entitles the holder to purchase an additional Share of the Company for a period of 18 months from the closing date at a price of $0.35 per Share. The Company has received initial funding of $500,000 and has issued 2,272,727 Units. Completion of the remaining $500,000 of the $1,000,000 private placement remains a condition precedent to moving to the Definitive Agreement. A finder's fee of 6% of gross proceeds is payable in cash to Scarsdale Equities LLC.
The Company has been working with Mr. Guoqin Huang, the Chairman and CEO of Guangshou, to advance completion of the private placement and the joint venture negotiations. In September Mr. Huang met with the Company's management team in Ecuador for initial joint venture meetings. On completion of the meetings in Ecuador Mr. Huang returned to China and the Company has recently been advised that Mr. Huang was involved in an automobile accident. Mr. Huang has suffered serious injuries and is unable to participate in the day to day management of Guangshou or to advance negotiations to finalize the Definitive Agreement. Representatives of Guangshou have advised the Company that Guangshou remains committed to completing the Definitive Agreement with the Company, but have requested additional time to finalize the Definitive Agreement. The Company has agreed to amend the LOI to provide additional time to Guangshou while allowing the Company to investigate other opportunities for moving the Curipamba project forward.
Mr. Salazar, CEO of Salazar Resources, stated: "We were extremely saddened to hear this news from China regarding the health of Mr. Huang. Our thoughts and prayers are with him and his family and we wish him the best for a full recovery. In the interim we must work in the best interest of the Company and our goal of developing the El Domo deposit."
More news regarding this transaction will be announced when it becomes available.
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 having 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.
ON BEHALF OF THE BOARD OF SALAZAR RESOURCES LIMITED
Fredy Salazar, President & CEO
Salazar Resources Limited