CENTRAL, Hong Kong, April 1 /CNW Telbec/ - SKY ALLIANCE RESOURCES, INC.
("SARI") announces that on March 31, 2011, it acquired ownership of
24,500,000 common shares of West African Iron Ore Corp. (TSX-V: WAI)
(the "Issuer" or "WAIOC") pursuant to the terms of a share purchase agreement dated January 28,
2011, as amended on February 22, 2011 (the "Share Purchase Agreement"). In addition to cash consideration in the amount of USD 1,000,000.00,
the Issuer issued 24,500,000 common shares to SARI as part of the
purchase price for all of the issued and outstanding shares in the
capital of SKY ALLIANCE RESSOURCES GUINEE SA which were held by SARI.
As of the date hereof, SARI owns 24,500,000 common shares of the
Issuer, representing 14.03% of the issued and outstanding common shares
of the Issuer.
As disclosed by the Issuer in its press release dated March 31, 2011,
WAIOC is also obliged, under the terms of the Share Purchase Agreement
to pay further consideration to SARI upon completion of certain
resource milestones, as follows:
a) an additional US$1,000,000 and the issuance of a further
16,000,000 common shares of the Issuer upon establishment of an iron
ore mineral resource of greater than 750,000,000 tonnes;
b) an additional US$1,500,000 and the issuance of a further
40,000,000 common shares of the Issuer upon establishment of an iron
ore mineral resource of greater less than 2 billion tonnes;
c) an additional 50,000,000 common shares of the Issuer and grant of a
1% royalty to SARI upon establishment of an iron ore mineral resource
of greater than 3 billion tonnes. The royalty can be purchased by the
Issuer for US$300 million at any time within one year of the
commencement of commercial production;
d) an additional 10,000,000 common shares of the Issuer upon
establishment of each additional 500,000,000 tonne iron ore mineral
resource, up to a maximum 120,000,000 additional common shares.
The securities issued pursuant to the Share Purchase Agreement are
subject to a four-month hold period and to the applicable escrow
requirements of the TSX Venture Exchange.
The common shares of the Issuer acquired by SARI were acquired for
investment purposes. Although SARI may receive additional shares of the
Issuer in the event that the previously mentioned resource targets are
met, SARI has no current intention to acquire further shares of the
Issuer. In the future, SARI may, from time to time, acquire additional
securities of the Issuer, may continue to hold its present position or
may dispose of its securities.
This press release is being issued in order to comply with the
disclosure requirements under applicable securities legislation. This
press release is not an admission that SARI owns or controls any WAIOC
securities, or is a joint actor, with another entity.
The TSX Venture Exchange has neither approved nor disapproved the
information contained herein.
For further information:
Mr. Guy Duport, President and Chief Executive Officer
Sky Alliance Resources, Inc.
+ 852 2522 1114