VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/04/13 -- Exeter Resource Corporation (TSX: XRC)(NYSE MKT: XRA)(NYSE Amex: XRA)(FRANKFURT: EXB) ("Exeter" or the "Company") is pleased to announce that it has entered into two option and joint venture agreements with Canadian company, San Marco Resources Inc. (TSX VENTURE: SMN), for the exploration of the Angeles and La Buena gold-silver properties located in Mexico (the "Angeles Property Agreement" and "La Buena Property Agreement", respectively).
Co-Chairman Mr. Yale Simpson states, "We believe a discovery on either of the two Mexican properties would provide Exeter shareholders very significant upside at modest cost and that our initial exploration commitment of CAD$2.4 million, less than 5% of our current cash position of CAD$52 million, is a prudent use of funds. Our principal focus will remain the advancement of our world-class Caspiche gold-copper deposit in Chile."
Co-Chairman Mr. Bryce Roxburgh states, "Exeter has an exceptional exploration track record, having discovered three mineral deposits since 2003, namely the Caspiche, Cerro Moro and Don Sixto deposits. Our team has spent 10 months reviewing mineral opportunities in jurisdictions where both the investment climate and the geological prospectivity are favourable. We are very excited to work with San Marco to test these exploration properties and look forward to the exploration news flow over the next 12 months."
The Angeles Property (option to earn up to 70%)
The Angeles property comprises a 12,410 hectare land package located in Sonora State, Mexico. The property hosts multiple structurally controlled zones of gold/silver/copper mineralization that have been identified over approximately 2.5 kilometres ("km"). Numerous historic workings on the property date back to the beginning of the 20th century, including a 400 metre ("m") underground access drift, used previously for mine production at the La Bonanza zone.
Despite the presence of surface mineralization and historically significant underground workings on site, the Angeles property has never been drill tested. Project infrastructure is considered excellent including road access, nearby electrical power and readily available skilled labour. Drill permits have been approved at the Angeles property and drilling is scheduled to begin in March, 2013.
The Angeles Agreement
Exeter can earn an initial 51% in the Angeles property by staged expenditures totalling CAD$10 million over the first 4 years and an additional 19%, over the next 3 years, for a total of 70%, by spending an additional CAD$10 million in exploration expenditures. Exeter will also make cash payments totalling CAD$950,000 staged over 7 years. All cash payments are to be made by way of a private placement purchase by Exeter of San Marco's common shares at a price equal to a premium of 25% to the 20 day volume weighted average price of San Marco's shares on the TSX Venture Exchange ("VWAP").
Exeter has committed to an expenditure of CAD$1.0 million at Angeles, which is largely related to 2,500 m of drilling at the La Bonanza and La Verde target areas.
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