SOLOMON RESOURCES LTD. (TSX-V:SRB) (“Solomon” of the “Company”), is pleased to advise further to its news release of March 21, 2014, it has received TSX Venture Exchange (the “Exchange”) approval on the option to acquire from Helio Resource Corp (“Helio”) up to a 60% interest in Helio’s Damara Gold Project (DGP) in Namibia in two stages.
Consideration for the option includes the aggregate issuance of 15,000,000 common shares of Solomon and exploration work expenditures of $1,500,000 over a three year period to earn the initial 51% interest (Stage 1). If Solomon successfully completes Stage 1 of the earn-in but elects not to proceed to Stage 2 to earn a 60% interest in the DGP, the companies will form a 51:49 Joint Venture company in favour of Solomon.
After successful completion of the Stage 1 earn-in requirements, Solomon has the option to increase its ownership in the DGP from 51% to 60% by spending an additional $1.5M in Year 4 and issuing an additional 5,000,000 common shares to Helio. Upon successful completion of Stage 2 the companies will form a 60:40 Joint Venture company in favour of Solomon.
In connection with the transaction, Dr. James Oliver, PH,D., P.GEO an independent Qualified Person has completed on behalf of the Company, a NI 43-101 Technical Report (the “Report”) dated June 2, 2014 revised July 4, 2014 – “Technical Report on the Gold Kop – Damara Gold Project Central, Namibia with an effective date of May 15, 2014. The Report will be filed on www.sedar.com under the Company’s profile and Company’s website www.solomonresources.com within 45 days of this release.
In accordance with the Policies of the Exchange a finders’ fee of 10% of the number of shares issued in connection with the option agreement has been granted.
The Company further advises it has entered into loan agreements (the “Loans”) with private investors and related parties (the “Lenders”) in the aggregate amount of $285,000 to provide short term working capital and commence initial work on the DGP. The Loans bear interest at 15% per annum and will mature 24 months from date of issue. The Company will issue 200,000 bonus shares in connection with a portion of the Loans advanced.
About Solomon Resources
Solomon Resources Limited is a Canadian public company focused on the acquisition, exploration and development of quality mineral properties worldwide.
ON BEHALF OF THE BOARD OF DIRECTORS OF SOLOMON
David Stone, President and CEO
For additional information contact:
Solomon Resources Limited
David M R Stone
Chief Executive Officer or
Larry Nagy, Director
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.
Statements Regarding Forward-Looking Information
Certain statements contained in this news release may contain forward-looking information within the meaning of Canadian securities laws. Such forward-looking information is identified by words such as “estimates”, “intends”, “expects”, “believes”, “may”, “will” and include, without limitation, statements regarding the company’s plan of business operations (including plans for progressing assets), estimates regarding mineral resources, projections regarding mineralization and projected expenditures. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others, metal prices, risks inherent in the mining industry, financing risks, labour risks, uncertainty of mineral resource estimates, equipment and supply risks, title disputes, regulatory risks and environmental concerns. Most of these factors are outside the control of the company. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, the company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.