The La Buena Property (option to earn 60%)
The La Buena property consists of an 8,500 hectare land package located in an active mining region within northern Zacatecas State, Mexico. The property is 5 km north of Goldcorp's La Negra/Noche Buena deposit and 9 km north of its Penasquito mine (Goldcorp has forecast 2013 production at 360,000 ounces of gold and 20 million ounces of silver).
The Julia target at La Buena has similar geological, geochemical and geophysical characteristics to other mineral deposits in the area, including Penasquito and Camino Rojo. By midsummer the joint venture plans to have expanded the IP geophysical coverage of the property to facilitate a 2,500 m drilling program, principally to test the Julia target.
The La Buena Agreement
Exeter has the right to earn 60% in the La Buena property by spending CAD$15 million in exploration expenditures and by making cash payments of CAD$650,000 staged over 5 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 VWAP.
Exeter has committed to first year expenditures of CAD$1.4 million, which includes a property scale IP program and 2,500 m of drilling.
Pursuant to the Angeles and La Buena Agreements, San Marco will be the project operator prior to Exeter's initial earn-in obligations. Detailed exploration programs will be determined by a management committee consisting of Exeter and San Marco representatives. San Marco has an established exploration team in Mexico.
Upon Exeter earning an interest in the Angeles and La Buena properties, a joint venture will be formed between Exeter and San Marco and each party will fund on-going expenditures in proportion to its respective interest in the properties.
Exeter is a Canadian mineral exploration and development company. Its principal focus is the advancement of its 100% owned Caspiche gold-copper project in Chile. Caspiche is one of the largest undeveloped gold-copper deposits in the America's and is situated in the Maricunga gold district, between the Maricunga mine (Kinross Gold Corp.) and the Cerro Casale gold-copper deposit (Barrick Gold Corp. and Kinross Gold Corp.). The Company continues to evaluate new opportunities related to the advancement of Caspiche, and new industry wide opportunities with the objective of securing properties, which offer near term discovery potential.
Exeter has completed pre-feasibility studies that demonstrate the potential for commercializing Caspiche. The Company currently has cash reserves of CAD$52 million and no debt.
You are invited to visit the Exeter web site at www.exeterresource.com.
EXETER RESOURCE CORPORATION
Wendell Zerb, P. Geol, President and CEO
Safe Harbour Statement - This news release contains "forward-looking information" and "forward-looking statements" (together, the "forward-looking statements") within the meaning of applicable securities laws and the United States Private Securities Litigation Reform Act of 1995, including in relation to the Company's belief as to the extent and timing of its drilling programs, various studies including pre-feasibility studies, engineering, environmental, infrastructure and other studies, and exploration results, budgets for its exploration programs, the potential tonnage, grades and content of deposits, timing, establishment and extent of resources estimates, potential for financing its activities, potential production from and viability of its properties, availability of water, power, surface rights and other resources, permitting submission and timing, potential to acquire new projects and expected cash reserves. These forward-looking statements are made as of the date of this news release. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the future circumstances, outcomes or results anticipated in or implied by such forward-looking statements will occur or that plans, intentions or expectations upon which the forward-looking statements are based will occur. While the Company has based these forward-looking statements on its expectations about future events as at the date that such statements were prepared, the statements are not a guarantee that such future events will occur and are subject to risks, uncertainties, assumptions and other factors which could cause events or outcomes to differ materially from those expressed or implied by such forward-looking statements. Such factors and assumptions include, among others, the effects of general economic conditions, the price of gold, silver and copper, changing foreign exchange rates and actions by government authorities, uncertainties associated with negotiations and misjudgments in the course of preparing forward-looking information.
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