MAJESCOR SIGNS BINDING LETTER OF INTENT FOR SALE OF HAITIAN ASSETS
Monday, March 02, 2015
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW
Ottawa, Ontario, March 2, 2015 - Majescor Resources Inc. ("Majescor" or the "Corporation") (TSX-V: MJX) is pleased to announce that it has signed a binding letter of intent ("LOI") with Développement Minier Durable Haiti S.A. ("DDMH"), a private company, for the sale of 100% of Majescor's interest in the SOMINE SA shares held by its wholly owned subsidiary SIMACT Alliance Copper-Gold Inc. ("SACG"). SACG owns 77% of the outstanding common shares of SOMINE SA.
In exchange for Majescor's interest in SOMINE SA, the Company will receive a 2% royalty on each of the two Mining Exploitation Permits (PEM) held by SOMINE. DDMH will retain the right to purchase at any time the royalties in whole or in part in the amount of $1,000,000 for 1% per royalty. The divesture of SOMINE SA to DDMH will allow Majescor to reduce its current obligations by approximately $2,673,000.
"Majescor is pleased with this transaction as it simplifies our balance sheet while we continue to look for other business opportunities as stated in our news release of April 3, 2014. We wish our Haitian partner success in developing these assets which are important to the Haitian economy", stated Mr. C. Tucker Barrie, CEO.
About Majescor Resources Inc.
Majescor was incorporated under the Canada Business Corporations Act on February 23, 1996 and is a TSX-V listed junior resource (mining) company. Majescor, through SIMACT Alliance Copper-Gold Inc., a wholly-owned subsidiary of the Corporation, holds a majority interest in SOMINE SA, a registered Haitian Company. SOMINE SA in turn holds 100% mineral rights to the Douvray porphyry copper-gold project and the Faille B vein gold located in the Northeast mineral district of the Republic of Haiti, near the port-city of Cap-Haitian. In addition, Majescor holds a 0.5% gross operating royalty for the Brauna #3 kimberlite diamond project, currently being developed by Lipari Mineração Ltda. a private Brazilian mining company in Bahia, Brazil.
For further information, please contact:
C. Tucker Barrie, Ph.D., P. Geo.
President and Interim CEO of Majescor Resources Inc.
Telephone: 613-241-5333
Fax: 613-421-8406
Email: [email protected]
Website: www.majescor.com
Legal Advisories
Additional information about the Corporation is available under Majescor's profile on SEDAR at www.sedar.com.
Reader Advisory Regarding Forward-Looking Statements
This news release contains certain "forward-looking statements" or "forward-looking information" (collectively referred to herein as "forward-looking statements") within the meaning of applicable securities legislation. Such forward-looking statements include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or are events or conditions that "will", "would", "may", "could" or "should" occur or be achieved. This news release contains forward-looking statements, pertaining to, among other things, the following: the resumption of the trading of Majescor shares on the TSX Venture Exchange. Statements regarding future production, capital expenditures and development plans are subject to all of the risks and uncertainties normally incident to the exploration for and development and production of oil and gas that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. These risks include, but are not limited to, inflation or lack of availability of goods and services, environmental risks, drilling risks, regulatory changes and certain other known and unknown risks detailed from time to time in Majescor's public disclosure documents, copies of which are available on Majescor's SEDAR profile at www.sedar.com.
Although Majescor believes that the material factors, expectations and assumptions expressed in such forward-looking statements are reasonable based on information available to it on the date such statements were made, no assurances can be given as to future results, levels of activity and achievements and such statements are not guarantees of future performance. Majescor's actual results may differ materially from those expressed or implied in forward-looking statements and readers should not place undue importance or reliance on the forward-looking statements. Statements including forward-looking statements are made as of the date they are given and except as required by applicable securities laws, Majescor disclaims any intention or obligation to publically update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.