NELSON, BC, Oct. 5 /CNW/ - Oromonte Resources Inc. ("Oromonte") announces
that the previously announced transfer of all of its Nambija interests to
Canuc Resources Corporation (Canuc) has been completed today.
The Asset Purchase Agreement signed today transfers to Canuc all of
Oromonte's interests in its Nambija, Ecuador gold mining property held
indirectly by Oromonte through its wholly owned Ecuadorian subsidiary, Ecuaoro
Resources S.A. In exchange for the transfer and quit claim of its interests,
Oromonte has received a total of 15,000,000 common shares of Canuc (14% of
Canuc's current outstanding capital) and 3,750,000 warrants exercisable for a
period of 18 months at $0.05 (increasing to $0.07 per share if Canuc shares
shall trade for in excess of $0.07 for a period of 20 days) for the purchase
of additional common shares of Canuc. In addition, Canuc has granted to
Oromonte a 2.5% gross royalty on the Nambija property, subject to a
US$2,000,000 cumulative cap on principal royalty payments. Canuc has also
assumed responsibility for certain payments made or to be made relating to the
property in the aggregate of up to approximately US $110,000 (including the
reimbursement of US$76,000 already paid out by Oromonte) and the
responsibility for certain senior employees of Oromonte in Ecuador whose
principal responsibilities have been with respect to the Nambija property.
Oromonte has completed the private placement of approximately 3.3 million
common shares of Canuc at $0.03 per common share (aggregate $100,000), as part
of the transaction.
Management of Oromonte believes that its shareholders can realize on the
value of the Nambija property through the continued equity interest held in
Canuc as well as the royalty interest acquired as part of this transaction.
"We are confident Canuc Resources can successfully develop the Nambija
properties for the benefit of all shareholders and other stakeholders in
Ecuador. With the completion of this Agreement, our Company can now focus its
attention on its other mining interests in Ecuador," said Bruce Cottingham,
CEO, of Oromonte.
The transaction has received the required regulatory approvals, including
that of the TSX Venture Exchange.
Oromonte is a mineral exploration company engaged in the acquisition,
development and exploration of mining properties in Ecuador. The Company has
acquired 100% owned mining concessions consisting of three consolidated
properties namely: Chimbuza Property, Pangui Property, and Virgen del Cisne
Property. The related projects are in early stage development with
environmental studies and/or exploration programs currently being implemented
to identify drilling targets. The Company trades common shares and warrants on
the TSX Venture Exchange under the symbol ORR and common shares on the
Frankfurt Stock Exchange under the symbol OF6.
For further information you can visit the Company's website at:
The TSX Venture Exchange has not reviewed, and does not accept
responsibility for the adequacy or accuracy of this release.
No stock exchange, securities commission or other regulatory authority
has approved nor disapproved the information contained herein. The News
Release includes certain "forward looking statements". All statements other
than statements of historical fact, included in this release, including,
without limitation, statements regarding potential mineralization and
reserves, exploration results, and future plans and objectives of Oromonte,
are forward looking statements that involve risks and uncertainties. There can
be no assurance that such statements will prove to be accurate and actual
results and future events could differ materially from those anticipated in
such statements. Important factors that could cause actual results to differ
materially from Oromonte's expectations are exploration risks detailed from
time to time in the filings made by Oromonte with securities regulations.
For further information:
For further information: Bruce Cottingham, CEO, Oromonte Resources Inc.,
Suite 206, 507 Baker Street, Nelson, British Columbia, Canada, V1L 4J2, Tel:
(250) 352-9923, Fax: (250) 352-9926