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Esperanza Resources Corp. ("Esperanza")
(TSX VENTURE:EPZ - News) is pleased to announce
a further strategic investment of $1.456 million in Global Minerals Ltd. (TSX
VENTURE:CTG - News) pursuant to a private
placement by Global which raised $4,001,000 on November 22, 2010. Esperanza,
by this investment, maintains its 19.9% ownership interest in Global. This
will ultimately grow to a 36.4% interest in Global upon approval by its
shareholders of special warrants held by Esperanza.
Bill Pincus, Esperanza's
President, said, "Esperanza is excited to be participating in this
emerging company and to have the ability to influence its development." Global's primary asset is the Streborna
silver-copper deposit in Slovakia, an advanced stage exploration project.
More information on the Streiborna project can be
found on Global's website: www.globalminerals.com.
Esperanza purchased 2,274,200 units (each unit
consisting of one common share and one-half of a share purchase warrant, each
whole warrant exercisable to purchase a further share for $0.55 until
November 22, 2012) for $0.35 per unit to maintain its 19.9% ownership
interest in Global and now holds 10,674,200 shares of Global. Esperanza also
purchased 1,885,700 special warrants for $0.35 each, which will convert
automatically, without payment of additional consideration, into 1,885,700
units upon receipt of approval by Global's
shareholders of Esperanza becoming a 'control person' of Global. Upon the
conversion of the special warrants, including special warrants acquired by it
in October, Esperanza will hold 23,493,233 shares of Global, representing a
36.4% ownership interest in Global, and warrants to purchase a further
1,137,100 shares. Shareholder approval is to be sought at Global's
Annual and Special General Meeting scheduled to be held on Friday, December
3, 2010. If shareholder approval is not obtained, the special warrants will
automatically convert into a non-convertible secured debenture in the
principal amount of $659,995 bearing interest at 8% per year, with a term of
18 months.
Esperanza's investment was made under section 2.10
of National Instrument 45-106 Prospectus and Registration Exemptions of the
Canadian Securities Administrators. Presently, Esperanza does not have any
intention of acquiring any further securities of Global, but may acquire
ownership of or control over further securities in the future depending upon
market circumstances.
Esperanza has filed an Early Warning Report with the
British Columbia and Alberta Securities Commissions in respect of the
acquisition. Copies of the Report may be obtained from SEDAR (www.sedar.com)
or without charge from us.
About Esperanza
Esperanza is an emerging producer company focused on
advancing the development of its two principal properties: the San Luis gold
and silver joint venture in Peru and the 100%-owned Cerro Jumil
gold project in Morelos State, Mexico. It is also actively investigating 17
other exploration interests in Peru and Mexico.
SAFE HARBOR: Some statements in this release are
forward-looking in nature. The United States Private Securities Litigation
Reform Act of 1995 provides a "safe harbor" for certain
forward-looking statements. Such statements include statements as to the
potential of the Cerro Jumil property, the ability
to finance further exploration, permit drilling and other exploration work,
and the availability of drill rigs.
The forward-looking statements involve risks and
uncertainties and other factors that could cause actual results to differ
materially, including those relating to exploration and bringing properties
into production. Please refer to a discussion of some of these and other risk
factors in Esperanza's Form 20-F filed with the U.S. Securities and Exchange
Commission. The forward-looking statements contained in this document
constitute managements' current estimates as of the date of this release with
respect to the matters covered herein. Esperanza expects that these
forward-looking statements will change as new information is received and
that actual results will vary, possibly in material ways. Forward-looking
statements are based on the beliefs, expectations and opinions of management
on the date the statements are made, and the company does not assume any
obligation to update forward-looking statements if circumstances or
management's beliefs, expectations or opinions should change. For these
reasons, investors should not place undue reliance on forward-looking
statements.
Neither the TSX Venture Exchange nor the Investment
Industry Regulatory Organization of Canada accepts responsibility for the
adequacy or accuracy of this release.
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