NELSON, BC, Aug. 22 /CNW/ - Oromonte Resources Inc. ("Oromonte")
announces that it has entered into a letter of intent with Canuc Resources
Corporation (Canuc) to effectively transfer all of its interest in its
Nambija, Ecuador gold mining property. In exchange for the transfer and quit
claim of its interests to Canuc, Oromonte will receive 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 will grant 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 will also assume 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 a portion of the amount 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 also agreed to complete 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.
Oromonte currently holds a majority of its interests in the Nambija
property under a lease expiring in 2013 with a wholly owned subsidiary of
Canuc and other interests by direct ownership in a number of mining
concessions and specific interests in the Goldstar mine. The lease provided
that Canuc's shareholders would consider the sale of their entire interest in
the Nambija property. The matter was considered and rejected by Canuc
shareholders at their meeting held on June 28, 2007.
The proposed transaction involves the transfer of the interests held
indirectly by Oromonte through its wholly owned Ecuadorian subsidiary as well
as the quit claim of interests in the lease from Oromonte's subsidiary to the
Management of Oromonte believes that Canuc management, now with long term
control over the consolidated asset, can more effectively plan the
exploitation of the value of the Nambija property. Oromonte and 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. At the same time Oromonte will be able
to focus its management team and resources on its other mining interests in
"Senior Management of Canuc has lengthy experience with, and significant
knowledge of, the Nambija property. With their recent re-organization and
re-capitalization we believe they will be very well positioned to exploit the
Nambija property" said Burkhard Franz, President of Oromonte.
The transaction is subject to receipt of any required regulatory
approvals, including that of the TSX Venture Exchange. The closing has been
targeted for on or before September 19, 2007.
Oromonte is now focusing on continuing exploration of its three other
properties in Ecuador, namely: Chimbuza, Pangui and Virgen del Cisne.
Exploration crews are in the field conducting the exploration work that is
permitted while waiting for the company's environmental studies to be reviewed
and approved by the Government of Ecuador. In conjunction with our VP
Exploration & Mine Development, Mr. Alex Cruz, the company has hired Mr. Pablo
Velez to manage the company's social and environmental initiatives to ensure
local communities are familiar with our projects, have an opportunity for
input through community consultations, and are supportive of them. The company
is in the process of reorganising its corporate structures and management team
in Ecuador to better support its exploration program, social and environmental
initiatives, government relations and corporate opportunities.
While Oromonte's exploration schedules have been temporarily set back due
to government permitting processes, management is confident the Government of
Ecuador is now instituting measures to provide the mining industry,
bureaucracy and local communities with clear policy direction and efficient
administrative processes. A new Ministry of Mines and Petroleum has recently
been created and a new Minister has been appointed who is familiar with, and
expected to be supportive of, the mining industry.
Oromonte is a mineral exploration company engaged in the acquisition,
development and exploration of mining properties in Ecuador. The Company has
acquired mining concessions through lease and outright purchase consisting of
four consolidated properties namely: Chimbuza Property, Nambija Property,
Pangui Property, and Virgen del Cisne Property. These projects are in early
stage development with environmental studies and/or exploration programs
currently being implemented to identify drilling targets. The Nambija property
interests are now being transferred to Canuc Resources Corporation.
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