SINGAPORE, SINGAPORE -- (Marketwire) -- 02/19/13 -- Samarium Group Holding Ltd. (the "Purchaser") announced today that it will commence a tender offer to purchase not less than 51% of the issued and outstanding public shares of common stock (the " Shares") of Samaranta Mining Corporation (the "Company") at a price of CAD$ 0.1200 per Share. The last reported trading price of the Shares on the TSX venture Exchange were on February 15, 2013 was 0.02 CAD per Share. The Purchaser's offer is being made upon the terms and conditions set forth in the letter of intent (the "Letter of Intent") transmitted to the Company.
The acquisition of the Shares by the Purchaser from the current shareholders (the "Stockholders") shall hereafter be known as the "Transaction" and the date of the consummation of the Transaction shall be the "Closing". The Purchaser will pay a total consideration (the "Total Consideration") composed of a cash purchase price (the "Cash Purchase Price") for the Shares of the Company 12 cents per Share plus a full one-year warrant at 16 cents and another full two-year warrant priced at 50 cents. The Purchaser will grant at the Closing to the Company a loan of 5.6 million USD at an interest rate of LIBOR plus 8.50% dedicated to the completion of a NI-43101 compliant resource report on the Guadelupe project of the Company, subject to the terms and conditions of this Letter of Intent, plus another 500,000 USD dedicated to an evaluation of the Company's other projects. The Purchaser intends that the proceeds from the sale of warrants be used by the Company to conduct necessary feasibility studies for putting the Guadelupe project into production.
The Purchaser intends to complete the Closing on or before the 15th of May 2013.
"This acquisition is an important addition to our growth strategy," said Volkmar Hable. "From a growth perspective, the purchase is in line with our strategy of complementing the portfolio by completing selected strategic acquisitions."
Added Volkmar Hable, "By providing a much needed cash infusion to Samaranta Mining Corporation we will be help the Company to complete its exploration program, and thus add significant value to Samarium Group Holding Ltd. and Samaranta Mining Corporation."
About Samarium Group Holding Ltd.
Samarium Group Holding Ltd. is a privately held investment company founded in 2001 and based in Singapore with a very significant highly liquid asset base. It does not operate projects but rather provides companies with the necessary capital to develop its projects. It investment focus is on energy and resources. For more information, please direct any inquiries to the Purchaser, attention Dr. Volkmar Hable, at email@example.com.
About Samaranta Mining Corporation
Samaranta is a mineral exploration and development company actively exploring for gold and precious metals in Colombia. The Company's primary focus is the Guadalupe gold property that is contiguous with the Frontino Gold Mine ("Frontino"). Frontino is currently the largest gold mine in Colombia and has been in operation for over 150 years with historic production estimated at 7 million ounces. Samaranta is the first company to explore the Guadalupe property using modern exploration techniques. Volkmar Hable has been founder of Samaranta Mining Corporation. He resigned as a director on the 31st of January 2013.
This press release contains or refers to forward-looking information, including statements regarding exploration results, potential mineralization, exploration plans and timing of the commencement of drilling, and is based on current expectations that involve a number of business risks and uncertainties. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, political risks, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects and the other risks involved in the mineral exploration and development industry. Forward-looking statements are subject to significant risks and uncertainties, and other factors that could cause actual results to differ materially from expected results. Readers should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof, and the Company assumes no responsibility to update them or revise them to reflect new events or circumstances other than as required by law.
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.
Samarium Group Holding Ltd
c/o Samarium Group Pte Ltd
+65 6622 5657
+65 6622 5999 (FAX)
Most Popular Stories
- SpaceX's Satellite Launch Is 'Game-Changer'
- Reid Confident Congress to Pass Immigration Bill
- Maui Visitor Killed in Shark Attack
- Donors Abandon GOP Over Gun Stance
- Mexico: 'Extremely Dangerous' Radioactive Material Stolen
- CEOs More Optimistic About Economy, Hiring
- Climate Change Early Warning System Urged
- Private Sector Employment Surges by 215,000 Jobs
- Newtown 911 Tapes Being Released Today
- Wisconsin Gov. Campaign Aide Fired Over Tweets