Solex
Resources Corp. Finalises Agreement With Eldorado Gold Corporation to Acquire
100% of Minera Frontera Pacifica
VANCOUVER,
May 26 - Solex Resources Corp. (TSX-V: SOX) ("Solex" or the
"Company") today announced that it has cleared the due diligence
condition and will proceed with the transaction set out in a definitive share
sale agreement to acquire 100% of the shares in Minera Frontera Pacifica S.A.
(MFP) from a wholly owned subsidiary of Eldorado Gold Corporation
("Eldorado"). On closing of this transaction, expected towards the
end of June once certain documents are registered in Peru, Solex will control
100% of the operations on over 904 km(2) of uranium concessions on the Macusani
Plateau in south-eastern Peru (the "project"). As disclosed in a news
release dated March 2nd, Solex has been negotiating the acquisition from
Eldorado of 27,555,244 common shares in MFP (100% of the authorised capital of
MFP). MFP is a subsidiary of Frontier Pacific Mining Corporation (Frontier)
which is itself a wholly owned subsidiary of Eldorado. MFP holds Frontier's 50%
interest in a mining property option and joint venture agreement dated June
11th 2006 (JV) with Solex which holds the other 50% interest. By acquiring MFP,
Solex will hold 100% of the interest in the JV. Solex, through its wholly owned
subsidiary, Minera Macusani S.A.C. is already the sole registered holder of the
concessions subject to the JV and accordingly, there will be no change in title
or ownership of these concessions.
To
date, approximately US$11 million has been spent on the project, with drilling
having taken place on 5 properties. In excess of 45 identified uranium
anomalies remain to be investigated by surface sampling and drilling.
Terms
of the Agreement
The closing of the acquisition is expected
to occur during June 2009 on satisfaction of all the necessary regulatory
conditions and the registration of documents in Peru.
Solex will make the following payments to Eldorado:
-
Issue a total of 11.8 million shares of Solex to
Eldorado (increasing Eldorado's interest in Solex to 19.9%) on closing;
-
Issue a promissory note to Eldorado for C$2 million;
C$1 million of which is due no later than 18 months from closing and a further
C$1 million due no later than 30 months from closing; and
-
To create a royalty based on future uranium production
from the Macusani East property of US$0.50/lb on the first 20 million lbs of
uranium produced.
About
the Macusani East Project
The 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 Carabay,
Department of Puno, in south-eastern 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, please see the Solex website www.solexresources.com).
About Solex Resources
Corp.
Solex
Resources Corp. is the dominant landholder in southern Peru's
Macusani Uranium District with concessions covering over 904 km(2). The Company
is also exploring its two other 100% owned Macusani uranium projects (West and
South), and proximal Picotani uranium project. NI 43-101 reports were filed
during 2008 on the Princesa silver, lead and zinc property and on the Pilunani
lead and zinc project.
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: 1-877-646-4488
Email:
dthiel@solexresources.com
Website:
www.solexresources.com
<