OAKVILLE, ON--(Marketwire -03/01/12)- Sarissa Resources Inc. ("Sarissa" or "the Company") (Pinksheets: SRSR.PK - News) wishes to update shareholders on the option and financing agreement (the "Option") entered into in 2011 as well as other potential financing options.
Under the terms of the original Option, when exercised between CDN$5,500,000 and CDN$10,000,000 was to have been raised to conduct pre-feasibility metallurgical studies and scoping studies, designed to qualify as a Preliminary Assessment under NI 43-101, including geological modeling and further resource estimates of the mineral potential of the Company's subsidiary, Nio-Star Corp's wholly-owned Nemegosenda niobium property.
To date the optionor ("HKHE") has contributed a portion of the anticipated funding, and the first part of the metallurgical studies were contracted for and started in September, 2011. These are substantially completed now, and we are waiting for the report and for recommendations for the next phase. The geological modeling and further resource estimates, including further diamond drilling, have not yet been completed.
The team we have assembled, including HKHE, continues to work toward completion substantially along the lines of the original Option, although the timing has had to be extended due to the challenging market conditions. While the Company continues to work with HKHE toward an anticipated closing, we have also considered it prudent to evaluate other financing options, both in China and Hong Kong, as well as North America and Europe. During the period in which HKHE had an exclusive option, the Company was approached by other companies with financing proposals, and is now evaluating these potential financing opportunities and partners to determine the best fit to quickly move the project to the next phase.
Sarissa CEO, Scott Keevil commented, "The timing of the Option was such that we and the optionors have been caught up in the general stock market and financing malaise, resulting in some of the anticipated funding groups involved in the original consortium having to drop out of their planned commitments. While this has been frustrating for all of us, the fact remains that we are continuing to advance our interest in this major asset. As well as beginning the advanced metallurgical engineering studies, we have now completed all option payments under the various acquisition agreements on the Nemegosenda property and now hold complete title to all of the ground, subject only to normal royalties, land taxes on our patented holdings, and provincial work commitments on our mining claims.
"This puts us in a very strong position in evaluating the various financing options, as we have no major time sensitive commitments to make that could be used as leverage against us in negotiations.
"This has been a pretty trying period for all of us. I know I have been frustrated by the timing over the past six months and I know what is going on behind the scenes, so I can only imagine how frustrating it has been for shareholders who are not able to see all of the efforts taking place in the background."
Sarissa management continues to believe that a financing arrangement along the lines contemplated, and the proposed Spin-Out plan represent the best route forward in the development of the Nemegosenda property and in realizing maximum value for Sarissa shareholders.
This press release contains statements, which may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of Sarissa Resources Inc., and members of its management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-statements include fluctuation of operating results, the ability to compete successfully and the ability to complete before-mentioned transactions. The Company does not undertake any obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.
About Sarissa Resources Inc.
Sarissa Resources Inc. is a junior exploration company with interests in properties with base metal, precious metal, uranium, niobium and rare-earth prospects in Northern Ontario, Canada. The Company is specifically focused on the development of its Nemegosenda niobium project.