Helio Resource Corp.
TSX-V Trading Symbol: HRC
Toll Free: +1 888 955 4728
E-mail: info@helioresource.com
Website: www.helioresource.com
Solomon Resources
TSX-V Trading Symbol: SRB
Toll Free: +1 888 860 2666
VANCOUVER , March 27, 2014 /CNW/ - Helio Resource Corp. (HRC.V),
("Helio" or the "Company") and Solomon Resources (SRB.V) are
pleased to report the companies have entered into a Letter of Intent,
whereby Solomon can earn up to a 60% interest in Helio's Damara Gold
and Tin Project (DGP) in Namibia .
Subject to TSX Venture Exchange (the "Exchange") approval, the principal
terms of the two-stage agreement are as follows:
Stage 1 (to earn a 51% interest)
Date for Completion*
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Shares Issued to Helio by Solomon
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Minimum Exploration Expenditures to be Incurred
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On Signing*
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2,500,000**
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By end of Year 1
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2,500,000
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$300,000**
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By end of Year 2
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5,000,000
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$500,000
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By end of Year 3
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5,000,000
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$700,000
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TOTAL
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15,000,000
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C$1,500,000
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* Within 5 business days of TSX Venture Exchange approval
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** Minimum Commitment - Share Issuance and Exploration Expenditures
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Helio shall be the operator during the Stage 1 earn-in phase.
Stage 2 (to increase to a 60% interest)
After successful completion of the Stage 1 earn-in requirements, Solomon
has the option to increase its ownership in the DGP project from 51% to
60% by spending an additional $1.5M in Year 4, and issuing an
additional 5,000,000 SRB shares to Helio. Upon successful completion
of Stage 2 the companies will form a 60:40 Joint Venture company in
favour of Solomon.
If Solomon successfully completes Stage 1 of the earn-in but elects not
to proceed to Stage 2 to earn a 60% interest in the DGP, the companies
will form a 51:49 Joint Venture company in favour of Solomon.
About the DGP Project
The DGP Project includes two Exclusive Prospecting Licences (EPLs)
covering approximately 722km2, located in central Namibia , southern Africa . The licences are located
20km east of the Navachab Gold Mine, which is in the process of being
sold by AngloGoldAshanti to QKR, a private equity firm, for US$110M .
The most advanced target within DGP is called GoldKop where drill
results from the 2011 and 2012 RC and Diamond drill programmes returned
multiple mineralised intercepts, including 7m @ 9g/t Au, 12m @ 6.8g/t
Au, 14m @ 3.1g/t Au and 4m @ 11.6g/t Au, over a 1km strike length. In
addition some high grade copper and silver values were also identified
- best intercept 7m grading 9g/t Au, 73g/t Ag and 4.4% Cu. Additional
coincident gold-in-soil and IP geophysical targets are ready for drill
testing.
Planned exploration on the DGP includes additional geophysics (gravity
and EM) to confirm the orientation of the high-grade auriferous zones,
infill drilling at GoldKop to determine the resource potential, and
drill-testing of new targets. Other geochemical targets will be
advanced to the drill-ready stage.
It is also planned that the Old Tin Mine within the DGP will be
investigated with drilling and underground sampling to confirm the
resource potential for tin. The Tin prospect comprises two areas of
surface and underground workings, located about 1km apart, that were
exploited sporadically between the 1930s and 1980s. Surface workings
include placer tin production and hardrock costeans (long trenches /
pits), and underground workings include several declines, to about 60m
depth, and cross cuts apparently in preparation for mining. Grab
samples have returned up to 1.6% Sn, 349ppm Ta, and 512ppm Nb, with the
tin occurring in the form of cassiterite within granitic intrusives.
Chris MacKenzie , M.Sc., C.Geol., Helio's COO and a Qualified Person as
designated by NI 43-101, is based in Namibia and supervises the
exploration at Helio's projects, including the sampling and quality
assurance / quality control (QA-QC) programmes, and has reviewed and
approved the contents of this news release.
About Solomon Resources
Solomon Resources Limited is a Canadian public company focused on the
acquisition, exploration and development of quality copper-gold and tin
properties worldwide.
About Helio Resource Corp.
Helio Resource Corp. is a resource company focused on advancing the 100%
owned SMP Gold Project in Tanzania to a production decision, and
outlining the resource potential at the DGP Gold Project in Namibia .
ON BEHALF OF THE BOARD OF DIRECTORS HELIO
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|
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"Richard D. Williams"
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"Chris MacKenzie"
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Richard D. Williams, P.Geo
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Christopher J. MacKenzie, C.Geol.
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CEO
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COO
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ON BEHALF OF THE BOARD OF DIRECTORS OF SOLOMON
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"David Stone"
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David Stone, President and CEO
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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.
Statements Regarding Forward-Looking Information
Certain statements contained in this news release may contain
forward-looking information within the meaning of Canadian securities
laws. Such forward-looking information is identified by words such as
"estimates", "intends", "expects", "believes", "may", "will" and
include, without limitation, statements regarding the company's plan of
business operations (including plans for progressing assets), estimates
regarding mineral resources, projections regarding mineralization and
projected expenditures. There can be no assurance that such statements
will prove to be accurate; actual results and future events could
differ materially from such statements. Factors that could cause actual
results to differ materially include, among others, metal prices, risks
inherent in the mining industry, financing risks, labour risks,
uncertainty of mineral resource estimates, equipment and supply risks,
title disputes, regulatory risks and environmental concerns. Most of
these factors are outside the control of the company. Investors are
cautioned not to put undue reliance on forward-looking information.
Except as otherwise required by applicable securities statutes or
regulation, the company expressly disclaims any intent or obligation to
update publicly forward-looking information, whether as a result of new
information, future events or otherwise.
SOURCE Helio Resource Corp.