The Company is pleased to announce it has received a National Instrument 43-101 technical report on Uitvalgrond PGE-Chromite (platinum group elements) Project, which is the property on which the Company plans on initially conducting exploration activities. The technical report has been submitted to the TSX Venture Exchange for review as part of the regulatory filing process and is available for viewing on the Company's website www.currierose.com.
In order to facilitate the transaction progressing to completion, the Company and Rock & Stock Investments (Pty) Ltd. ("R&S") have agreed to modify the purchase agreement to an option agreement. The result of the amended agreement is that the Company will not issue the 7,500,000 common shares or 4,000,000 warrants on closing. Instead, the Company has been granted an option to earn up to a 44% interest in the shares of Isibaya owned by R&S by the expenditure of $3,000,000 US, over a three year period, with a firm commitment of $350,000 US during the initial year. The $100,000 US payment to R&S remains as a term of the option agreement.
Upon earning the 44% interest of shares of Isibaya, the Company has a call and R&S has a put during a period of one year for the Company to acquire R&S' remaining 30% interest in shares of Isibaya owned by R&S by the payment of cash or, at the election of the Company, issuance of common shares in the capital stock of the Company equal to fair market value of the 30% interest.
In the event neither the Company or R&S exercise the call or put options, then other provisions of the option agreement apply, and the Company may earn 74% of the outstanding shares of Isibaya by funding the property to a definitive feasibility study and by arranging financing for construction and development of a mine. A 2.5% NSR is payable to R&S in the event the Uitvalgrond or Sondzela projects are placed into production. A 3% NSR is payable to Wave Exploration and Development (Pty) Ltd. and a payment of $500,000 US to R&S in the event the Company places the Steinkopf project into production.
As per the terms of the initial letter agreement, in the event the Company earns a 74% interest in the shares of Isibaya, the Black Economic Empowerment group ("BEE") will own the remaining 26% interest, as required by South African law.
A finder's fee is payable to third parties of 860,000 common shares of the Company and 300,000 warrants, exercisable at $0.10 per warrant.
The Company intends on completing a financing to raise funds to undertake exploration of the Uitvalgrond Project and for working capital, details of which will be announced when finalized.
The terms of the option agreement are subject to TSX Venture Exchange approval.
BY ORDER OF THE BOARD OF DIRECTORS OF CURRIE ROSE RESOURCES INC.
Harold Smith, Chief Executive Officer
"This news release includes certain forward-looking statements or information. All statements other than statements of historical fact included in this release, including, without limitation, statements relating to the potential mineralization and geological merits of the and properties and other future plans, objectives or expectations of the Company are forward-looking statements that involve various 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 the Company's plans or expectations include risks relating to the actual results of current exploration activities, fluctuating gold prices, possibility of equipment breakdowns and delays, exploration cost overruns, availability of capital and financing, general economic, market or business conditions, regulatory changes, timeliness of government or regulatory approvals and other risks detailed herein and from time to time in the filings made by the Company with securities regulators. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation."