Silver Rock signs Letter of Intent to acquire 60% interest in past producing Gold properties
VANCOUVER, Nov. 23, 2011 /CNW/ - Silver Rock Resources Inc. (the "Company") is pleased to announce that it has entered a binding Letter of Intent with Olympus Gold Corp (the "Optionor") to option 60% undivided interest in several previously producing gold claims in Sierra County, California. The Olympus controlled Kate Hardy - Omega Mine Properties are located near the northern end of the historic MotherLode district. The Company anticipates receipt of an NI 43-101 Technical Report within the next few weeks and plans to embark on permitting and exploration activities in early 2012 as weather permits.
Under the terms of the option agreement, the Optionor agrees to grant to Silver Rock the sole and exclusive right and option (the "Option") to acquire a 50% undivided interest in and to the Properties free and clear of all charges, encumbrances and claims by incurring 50% of the cumulative Exploration Expenditures going forward, estimated to be $500,000, and making payments to the Optionor as follows: Payments totaling $200,000 within fifteen (15) days of the Listing Date; an additional $100,000 to be made by May 1, 2012; and final payment of $200,000 to be made by May 1, 2013.
Furthermore, upon completion of earning an undivided 50% interest in and to the Kate Hardy - Omega Mine Properties, the Company can acquire an additional 10% undivided interest (the "Second Option") to a total of 60% undivided interest free and clear of all charges, encumbrances and claims in the Kate Hardy - Omega Mine Properties by paying an additional $200,000 in cash; Incurring the next $500,000 of exploration or development expenditures solely; and Issuing to the Optionor an aggregate of 800,000 Shares.
Silver Rock Resources CEO, Ian Lambert commented; "The Company believes that with a fresh approach it has the potential to uncover substantial new value on this Gold property. With Gold prices hitting record highs of late, we feel strongly that this acquisition will add tremendous shareholder value to the Company. Mr. Lambert has recently joined Silver Rock Resources as President and CEO. He was a founding director of Trade Winds Ventures Inc. (TSXV: TWD) and has recently entered into a transaction to sell Trade Winds Ventures to Detour Gold Corporation, valued at $84 million.
About the Kate Hardy - Omega Mine Properties
The mine was operated for about eighty years, beginning in 1879 and operated through 1959, back when Gold was priced at around $30 per ounce. Reported production is estimated at 25,000 to 30,000 ounces of gold, from 25,000 to 30,000 tons of mined material. This would indicate an average grade mined of about one ounce per ton as the MotherLode veins are known to be relatively rich, and the mine would have operated for many years against a fixed gold price. The Company anticipates that, with further exploration drilling and expansion of existing historic resources, it will be able to maximize gold production in the coming years.
The Company invites shareholders and other interested parties to call Investor Communications at: +1 604-267-7010.
About Silver Rock Resources Inc.
Silver Rock Resources Inc. is a Gold and Silver exploration and development company with high-potential properties located in Mexico. With this option agreement, the Company will expand operations into California. Silver Rock is a private company incorporated in British Columbia and is currently seeking a public listing in early 2012.
On behalf of the Board
CEO, President & Director
This document may contain "forward-looking information" within the meaning of Canadian securities legislation and "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively, "forward-looking statements"). These forward-looking statements are made as of the date of this document and Silver Rock Resources Inc. (the "Company") does not intend, and does not assume any obligation, to update these forward-looking statements, except as required under applicable securities legislation.
Forward-looking statements relate to future events or future performance and reflect Company management's expectations or beliefs regarding future events and include, but are not limited to, statements with respect to the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, success of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative of these terms or comparable terminology. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of resources; possible variations in ore reserves, grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; as well as those factors detailed from time to time in the Company's interim and annual financial statements and management's discussion and analysis of those statements, all of which are filed and available for review on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.
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