VANCOUVER, June 18, 2012 /CNW/ - SIERRA IRON ORE CORPORATION (the "Company") is pleased to announce that it has entered into an agreement (the
"Mazomique Agreement") with Aztec Zinc de Mexico S.A. de C.V. (the
"Owner"), an arm's-length party, to acquire up to an 80% interest in a
highly prospective iron ore property (the "Mazomique Property")
comprising of one concession covering an area of 3,055.27 ha near the
northeast boundary of Sinaloa and Chihuahua states. The Mazomique
property has excellent infrastructure to transport drill equipment and
heavy machinery with an existing 25km partly sealed and all weather
gravel road from the city of Choix.
In order to earn its 80% interest, the Company is required to pay the
Owner a total cash amount of USD$100,000 in stages: $10,000 upon
execution, $20,000 on or before 6-months after regulatory approval;
$20,000 on or before 12-months after regulatory approval, $20,000 on or
before 18-months after regulatory approval and $30,000 on or before
24-months after regulatory approval. In addition, a total of 14,500,000
shares must be issued to the Owner in stages: i) 2,000,000 shares no
later than 5-days after regulatory approval; ii) 2,000,000 shares
6-months after regulatory approval; and iii) 10, 500,000 shares on or
before the earliest of the expenditure of $2,000,000 on work programs
over three years, the presentation of a positive feasibility study and
the commencement of commercial iron-ore production on the Mazomique
This acquisition remains subject to regulatory approval which will, in
turn be subject to shareholder approval. The Mazomique Agreement will
be put to shareholders for a vote at the Company's upcoming Annual
General Meeting scheduled for July 9, 2012.
"We are very excited at the prospect of acquiring the Mazomique
Property," stated Wally Boguski, CEO and President. "The proximity to
an operating mine and existing infrastructure will mean that our
company will now have the potential for two near term operating iron
ore mines in the region."
There will be no finder's fees paid.
The Mazomique concession encloses and surrounds the El Rosario iron mine
currently being operated by Paradox Global Resources S.A. de C.V.
Paradox regularly exports a reported 20 to 30 thousand metric tons of
iron ore per month to overseas markets. The iron mineralization at El
Rosario consists primarily of magnetite and hematite enclosed ore at
the periphery of a skarn zone developed at the contact between
limestone and Tertiary granodiorite. Recent rock chip geochemistry
survey suggests a western extension of the El Rosario iron
mineralization into the Mazomique concession.
About Sierra Iron Ore
Sierra Iron Ore is a growth focused mineral exploration company creating
value through the exploration and development of the El Creston
property located in the Sinaloa State of Mexico. The company has a
continual fieldwork program at the El Creston Property that is
comprised of drilling, mapping, sampling and planning for further
property development. Roads have been built and upgraded as well as
equipment has been mobilized for further developing the known iron ore
mineral zones identified by recent exploration work.
Mr. Ruben Verzosa, P. Eng., a Qualified Person (QP) as defined by NI
43-101 has approved the geological content of this Press Release.
On behalf of The Board of Directors of Sierra Iron Ore Corporation.
Paul Lee, Director
This news release contains certain forward looking statements which
involve known and unknown risks, delays, and uncertainties not under
the control of Sierra Iron Ore Corp. which may cause actual results,
performance or achievements of Sierra Iron Ore Corporation to be
materially different from the results, performance or expectation
implied by these forward looking statements. 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 press release, which has been prepared
SOURCE Sierra Iron Ore Corporation
For further information:
Corey Safran, Investor Relations, at 609-228-0595, or by email at firstname.lastname@example.org.