Solex Resources Signs Letter of Intent with Eldorado Gold
To Acquire 100% Interest in the Macusani East Uranium Project
VANCOUVER, March 2 - Solex Resources Corp. (TSX-V: SOX) ("Solex" or the "Company") today announced it has entered into a letter of intent with Eldorado Gold Corporation ("Eldorado") to acquire 100% of the Macusani East uranium project in southeastern Peru. Solex currently owns 50% of the project through a joint venture with Eldorado.
"With this transaction Solex has met its objective of bringing operatorship and ownership of the majority of the Macusani district back under its direct control," said Jonathan Challis, President and CEO of Solex. "Macusani has long been regarded as the most prospective region for uranium exploration in South America. Over the past four years our understanding of the structural controls to mineralization and the types of mineralization has increased significantly. With the development of strong local uranium expertise, we have built a strong platform to accelerate our exploration efforts."
Solex's land position at the Macusani East property is currently comprised of 26,160 hectares. Upon closing of this agreement, Solex will acquire an additional 21,660 hectares increasing the land position to a total of 47,820 hectares. To date, approximately US$11 million has been spent on the property, including drilling on five targets. More than 45 uranium anomalies still require additional exploration. In addition, Solex will conduct bulk sampling of material from Macusani East utilizing its mobile leach test laboratory.
Terms of the Proposed Agreement
Under the terms of the Letter of Intent, Solex will:
- Issue a total of 11.8 million shares of Solex to Eldorado, increasing Eldorado's interest in Solex to 19.9% on closing whereby making ldorado the largest shareholder in Solex;
- Pay to Eldorado a total of C$2 million in two equal tranches within 2 & 24 months of closing. Under certain circumstances, each payment ould be deferred for a further six months;
- Pay a royalty to Eldorado on future uranium production from the acusani East property of US$0.50/lb on the first 20 million lbs of ranium produced; and
- Become the sole operator of the property.
The completion of the transaction is subject to the execution of a definitive agreement, technical and legal due diligence, and satisfaction of all necessary regulatory conditions. The closing of the acquisition is expected to occur within 60 days.
About the Macusani East Project
The Macusani East project contains 53 known uranium anomalies discovered in the 1970s by the Peruvian Institute of Nuclear Energy ("IPEN") and consists of 72 concessions covering 47,820 hectares. It is situated within the Province of Carabaya, Department of Puno, in southeastern Peru, and lies within the relatively flat Altiplano of the Eastern Cordillera. The area is approximately 650 kilometres southeast of Lima. Access is by paved road on the Trans-Oceanic highway from the City of Juliaca to the town of Macusani (approximately 200 kilometres). The Macusani East area is the most studied area in southern Peru by IPEN. After IPEN discovered the first 60 uranium showings in 1978, systematic radiometric prospecting and trenching were carried out over an area of approximately 600 square kilometres, culminating in the discovery of numerous additional uranium showings. In 1984, the OECD Nuclear Energy Agency and the International Atomic Energy Agency sponsored an International Uranium Resources Evaluation Project Mission to Peru. The mission estimated that the Speculative Resources of the country fell within the range of 6,000 to 11,000 tonnes of uranium. Solex has acquired the largest interest in claims covering the ground studied by IPEN. For a detailed claim map, refer to Solex's website at www.solexresources.com.
The TSX Venture Exchange (the "Exchange") has not reviewed and does not accept responsibility for the accuracy or adequacy of this news release. The Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.
This news release may contain forward-looking statements that are based on Solex's expectations, estimates and projections regarding its business and the economic environment in which it operates. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Therefore, actual outcomes and results may differ materially from those expressed in these forward-looking statements and readers should not place undue reliance on such statements. Statements speak only as of the date on which they are made, and the Company undertakes no obligation to update them publicly to reflect new information or the occurrence of future events or circumstances, unless otherwise required to do so by law.
For further information: Deborah Thiel, V.P., Corporate Development, Cell: (604) 512-9691, Toll Free: (877) 646-4488, Email: dthiel@solexresources.com, Website: www.solexresources.com
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