VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 06/10/13 -- Salazar Resources Ltd. (TSX VENTURE: SRL)(FRANKFURT: CCG) (the "Company") Further to the Company's news release dated May 13, 2013, the Company is pleased to announce that is has completed a first closing of its private placement (the "Private Placement") and issued 4,545,455 units of the Company ("Units") to Urion Mining International BV, a wholly-owned subsidiary of Trafigura Beheer B.V. (together referred to as "Urion"), a privately held international commodity trading and logistics company, at a price of $0.22 per Unit to raise total gross proceeds of $1,000,000.10. Each Unit consists of one common share of the Company ("Common Share") and one-half of a share purchase warrant ("Warrant"). Each full Warrant entitles the holder to purchase an additional Common Share of the Company for a period of 18 months at a price of $0.35 per Common Share.
The gross proceeds received from the Private Placement are to be used to fund completion of a Preliminary Economic Assessment (the "PEA") on the El Domo property at the Curipamba Project, fund payment of tenure costs and also pay for agreed upon operational costs in respect of the Curipamba Project.
Under the an investment and participation agreement with Urion (the "Agreement"), on receipt of the PEA, which the Company anticipates receiving in approximately eight months, Urion may elect to provide additional financing to bring El Domo into production through an investment in the Company or in its wholly-owned Ecuadorian subsidiary, Minera Curimining S.A. ("Curimining"), subject to Urion acquiring a maximum 35% equity interest in either the Company or Curimining. If Urion elects to provide such financing, it would be obliged to provide financing for up to 50% of the total project costs to bring El Domo into production. Urion would also assist the Company in raising the balance of the funding required to bring El Domo into production. The Agreement also grants Urion off-take rights to purchase all production from future operations.
As a result of the first closing of the Private Placement, Urion now owns and controls an aggregate of 7,045,455 Common Shares, or 13.15% of the issued and outstanding Common Shares. Urion previously held 1,250,000 Common Share purchase warrants of the Company. Assuming the exercise of all outstanding warrants held by Urion, Urion would hold an aggregate of 10,568,183 Common Shares or 18.51% of the issued and outstanding Common Shares.
Urion acquired the additional Common Shares and Warrants for investment purposes. They may in the future take such actions in respect of their shareholdings in the Company as they may deem appropriate in light of the circumstances then existing, including the purchase of additional Common Shares or other securities in the capital of the Company through open-market purchases or privately negotiated transactions, or the sale of all or a portion of their holdings in the open market or in privately negotiated transactions to one or more purchasers, in each case in accordance with applicable securities laws.
Urion has filed an Early Warning Report with the applicable securities regulators in connection with this increase in ownership of Common Shares, and a copy of such report is available at www.sedar.com.
ON BEHALF OF THE BOARD OF SALAZAR RESOURCES LIMITED
Fredy Salazar, President & CEO
Salazar Resources Limited
About Salazar Resources Limited
Salazar Resources Ltd. is a publicly-listed (TSX VENTURE: SRL)(FRANKFURT: CCG) mineral resource company engaged in the exploration and development of new highly prospective areas in Ecuador. Led by a senior Ecuadorian management team and most notably by its namesake Fredy Salazar, this team has been instrumental in other major discoveries throughout Ecuador.Being based in Ecuador, thus have thorough knowledge of local human and environmental issues, gives the company a strategic advantage, enabling it to complete exploration at a rapid pace. With an excellent property portfolio (3 projects- 42,900 hectares), good geopolitical positioning and a number of strategic corporate and financial partnerships, Salazar has positioned itself to be a strategic player in Ecuador and throughout South America.
About Trafigura Beheer B.V.
Trafigura is one of the world's leading international commodity traders, specializing in the oil, minerals and metals markets, with 81 offices in 56 countries in Europe, Africa, Asia, Australia, and North, Central and South America. The Group's primary trading businesses are the supply and transport of crude oil, petroleum products, renewable energies, coal, refined metals, ferrous and non-ferrous ores and concentrates. Trafigura is the world's second largest independent non-ferrous trading company and the third largest independent oil trader.
Founded in 1993, the company is owned by its founding shareholders and senior management. It has achieved substantial growth in recent years, growing turnover from USD18 billion in 2004 to USD120.4 billion in 2012.
This press release contains "forward-looking information" within the meaning of applicable Canadian securities laws. All statements included herein, other than statements of historical fact, are forward-looking information and such information involves various risks and uncertainties. Forward-looking information herein includes, but is not limited to, statements that address activities, events or developments that the Company expects or anticipates will or may occur in the future, including such things as the successful completion of the PEA and the timing of completion of the PEA. Such forward-looking information is based on a number of material factors and assumptions, including that contracted parties provide services on the agreed timeframes and that laboratory and other related services are available and perform as contracted. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in the Company's disclosure documents on the SEDAR website at www.sedar.com. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information except in accordance with applicable securities laws.
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 news release.
Salazar Resources Ltd.
Trafigura's Global Press Office:
+44 207 009 1708
Most Popular Stories
- Chobani Counters Competition With Expanded Lineup
- Iran Denounces U.S. Ruling to Sell Property
- Confusion, Anger as Sunken Ferry's Relatives Wait
- Nevada Range Showdown Draws Armed Supporters
- Report: Iran VP Says Row Over Reactor Resolved
- Fiat Chrysler to Build 3 Jeeps in China
- Putin: No Blocks to Boosting Relations With West
- Ohio Couple Married 70 Years, Die 15 Hours Apart
- NASA's Space Station Robonaut Finally Getting Legs
- 'Beige Book' Federal Reserve Survey, April 2014: Full Text