OAKVILLE, ON, April 9 /CNW/ - Sheltered Oak Resources Corp. ("OAK") announces that, through its wholly-owned subsidiary Sheltered Oak Resources Inc. ("SOR Inc."), it has entered into an agreement (the "Purchase Agreement") with two individuals (the "Owners") to acquire an interest in the Terry Zone Property (as described below) and it has entered into an agreement with a corporation (the "Optionee") which also has an interest in the Terry Zone Property (the "Optionee's Agreement") in connection with the acquisition.
Subject to the terms and conditions set out in the Purchase Agreement, SOR Inc. has agreed to acquire four unpatented mining claims comprising a total of eight units and the mining rights of one patented claim comprising four units in the Larder Lake Mining District located in the Pacaud and Catharine Townships in the Province of Ontario (the "Terry Zone Property"). In consideration thereof the Owners will receive 100,000 common shares of OAK and $75,000 in cash to be paid to the Owners in three equal annual payments starting on September 26, 2010 and ending on September 26, 2012. On closing of the acquisition, the Owners will receive a 2% Net Smelter Royalty ("NSR") on the Terry Zone Property of which 1% can be purchased from the Owners by OAK at any time for $1,000,000. OAK will also pay to the Owners a 2% NSR as an advance royalty payment on any bulk sample of 30,000 tons or less of treated ore.
Subject to the terms and conditions set out in the the Optionee's Agreement, the Optionee will abandon all of its rights and interests under an existing option agreement with the Owners and in consideration thereof the Optionee will receive $60,000 worth of common shares in the capital stock of OAK and $80,000 in cash to be paid to the Optionee in annual payments starting on the date the transaction contemplated by the Purchase Agreement is completed and ending on September 26, 2012.
The transactions contemplated by the Purchase Agreement and the Optionee's Agreement are subject to regulatory approval from the TSX-V.
Neither 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.
This news release may contain certain information that constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as "plan," "expect," "project," "intend," "believe," "anticipate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include comments regarding the completion of transactions contemplated by the Purchase Agreement and the Optionee's Agreement. The Company disclaims any obligation to update or revise any forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.
SOURCE SHELTERED OAK RESOURCES CORP.
For further information: For further information: Sheltered Oak Resources Corp., Robert K. Hanson, Chief Executive Officer, Phone: (905) 847-6029, Fax: (905) 847-9575, Email: firstname.lastname@example.org; CHF Investor Relations, Christopher Haldane, Account Manager, Phone: (416) 868-1079 ext.237, Fax: (416) 868-6198, Email: email@example.com