Montero Mining and Exploration Ltd. ("Montero") has entered a binding letter agreement with Greenflash 251 (Pty) Limited to acquire up to a 75% interest in the Greenflash Off-Shore Phosphate Project in South Africa (the "Greenflash Project").
Montero has 6 months from signing to complete financial, legal and technical due diligence and seek TSXV approval. Upon fulfillment of all conditions precedent, Montero shall immediately earn a 49% interest in the Greenflash Project by committing to complete a NI43-101 compliant resource and earn up to a 75% interest by completing a Bankable Feasibility study.
Montero has also entered into a Memorandum of Understanding ("MOU") with Ovation Capital ("Ovation") to co-fund the due diligence investigation and ultimately provide project finance for the Greenflash Project. Upon completion of successful due diligence Ovation will have the right to earn 49% of Montero's interest by providing funding to complete a compliant resource.
Ovation has already committed to complete a pre-feasibility study on Montero's Duyker Eiland phosphate and fertilizer project for equity in the project (news release 2 March, 2015). The Greenflash Project could potentially provide additional feedstock to a Fertilizer Plant envisaged to be developed in Saldanha Bay by Montero and Ovation.
Dr. Tony Harwood, President and Chief Executive Officer of Montero commented, "Montero is expanding its portfolio of phosphate projects in South Africa with funding partner Ovation Capital. The Greenflash Project has seen extensive drilling providing Montero with meaningful information to serve as basis for developing a resource. Montero and Ovation will focus initially on developing a resource from existing drill core where large areas of phosphate rich sediments have been identified. The acquisition fits with our strategy of developing phosphate rock assets to support a fertilizer plant in Saldanha Bay port."
The Greenflash Project contains phosphate-rich sediments that are located on the continental shelf off the western coastline of South Africa and at its nearest point is 30km from Saldanha Bay. The initial license area is approximately 65,000km2 in extent and follows the coastline for 400km.
Exploration in the Greenflash Project area started in the 1980's for diamonds. The area was mapped and geophysical surveys were completed in the search for diamonds which are extensivly mined along this coastline on the continental shelf. Drill core from the diamond exploration was made availalbe to the University of Cape Town ("UCT") for research purposes. Studies were advanced by the Geological Survey and UCT's Marine Geoscience Group based on the drill core samples. An extensive area of phosphate-rich sediment has been identified offshore from Saldanha Bay and forms the principal evaluation target.
A Qualified Person is currently reviewing the available reports on the Greenflash Project as part of the due diligence and updates will be provided during this process.
Qualified Person's Statement
This press release was reviewed by Mr. Mike Evans, M.Sc. Pr.Sci.Nat., who is a qualified person for the purpose of National Instrument 43-101 and a Consulting Geologist to Montero.
About Montero Mining & Exploration
Montero Mining and Exploration Ltd. is a mineral exploration and development company engaged in the identification, acquisition, evaluation and exploration of mineral properties. These include rare earth elements (REE) in Tanzania and phosphates in South Africa. Montero remains focused on bringing in a strategic investor for the further development of the Wigu Hill Rare Earth Element Project in Tanzania, which is a high-grade, undeveloped Light Rare Earth Element deposit. Montero has entered into agreement to develop its portfolio of phosphate properties in South Africa with Ovation Capital. Montero trades on the TSX Venture Exchange under the symbol MON.
Signed. Dr. Tony Harwood, President and CEO