An error appeared in the
email version of the following press release, sent earlier today.
Correction: Pay to Eldorado a total of C$2 million in two equal
tranches within 12 (should not say 2) & 24 months of closing. Under certain
circumstances, each payment could be deferred for a further six months;
The corrected version in
its entirety appears below. The Equicom Group apologizes for any confusion this
may have caused.
Solex
Resources Signs Letter of Intent with Eldorado Gold
To Acquire
100% Interest in the Macusani East Uranium Project
VANCOUVER, March 2 - Solex
Resources Corp. (TSX-V: SOX) ("Solex" or the "Company")
today announced it has entered into a letter of intent with Eldorado Gold
Corporation ("Eldorado") to acquire 100% of the Macusani East uranium
project in southeastern Peru. Solex currently owns 50% of the project through a
joint venture with Eldorado.
"With this transaction
Solex has met its objective of bringing operatorship and ownership of the
majority of the Macusani district back under its direct control," said
Jonathan Challis, President and CEO of Solex. "Macusani has long been
regarded as the most prospective region for uranium exploration in South
America. Over the past four years our understanding of the
structural controls to mineralization and the types of mineralization has
increased significantly. With the development of strong local uranium
expertise, we have built a strong platform to accelerate our exploration
efforts."
Solex's land position at the
Macusani East property is currently comprised of 26,160 hectares. Upon closing
of this agreement, Solex will acquire an additional 21,660 hectares increasing
the land position to a total of 47,820 hectares. To date, approximately US$11
million has been spent on the property, including drilling on five targets. More
than 45 uranium anomalies still require additional exploration. In addition,
Solex will conduct bulk sampling of material from Macusani East utilizing its
mobile leach test laboratory.
Terms of the Proposed
Agreement
Under the terms of the
Letter of Intent, Solex will:
- Issue a total of
11.8 million shares of Solex to Eldorado, increasing Eldorado's interest in
Solex to 19.9% on closing whereby making Eldorado the largest shareholder in
Solex;
- Pay to Eldorado a
total of C$2 million in two equal tranches within 12 & 24 months of
closing. Under certain circumstances, each payment could be deferred for a
further six months;
- Pay a royalty to Eldorado on
future uranium production from the Macusani East property of US$0.50/lb on the
first 20 million lbs of uranium produced; and
- Become the sole
operator of the property.
The completion of the
transaction is subject to the execution of a definitive agreement, technical
and legal due diligence, and satisfaction of all necessary regulatory
conditions. The closing of the acquisition is expected to occur within 60 days.
About the Macusani East
Project
The Macusani East project
contains 53 known uranium anomalies discovered in the 1970s by the Peruvian
Institute of Nuclear Energy ("IPEN") and consists of 72 concessions
covering 47,820 hectares. It is situated within the Province
of Carabaya, Department of Puno, in
southeastern Peru,
and lies within the relatively flat Altiplano of the Eastern Cordillera. The area is
approximately 650 kilometres southeast of Lima.
Access is by paved road on the Trans-Oceanic highway from the City of Juliaca
to the town of Macusani
(approximately 200 kilometres). The Macusani East area is the most studied area
in southern Peru
by IPEN. After IPEN discovered the first 60 uranium showings in 1978,
systematic radiometric prospecting and trenching were carried out over an area
of approximately 600 square kilometres, culminating in the discovery of
numerous additional uranium showings. In 1984, the OECD Nuclear Energy Agency
and the International Atomic Energy Agency sponsored an International Uranium
Resources Evaluation Project Mission to Peru.
The mission estimated that the Speculative Resources of the country fell within
the range of 6,000 to 11,000 tonnes of uranium. Solex has acquired the largest
interest in claims covering the ground studied by IPEN. For a detailed claim
map, refer to Solex's website at www.solexresources.com.
The TSX Venture Exchange
(the "Exchange") has not reviewed and does not accept responsibility
for the accuracy or adequacy of this news release. The Exchange has in no way
passed upon the merits of the proposed transaction and has neither approved nor
disapproved the contents of this press release.
This news release may
contain forward-looking statements that are based on Solex's expectations,
estimates and projections regarding its business and the economic environment
in which it operates. These statements are not guarantees of future performance
and involve risks and uncertainties that are difficult to control or predict.
Therefore, actual outcomes and results may differ materially from those
expressed in these forward-looking statements and readers should not place
undue reliance on such statements. Statements speak only as of the date on
which they are made, and the Company undertakes no obligation to update them
publicly to reflect new information or the occurrence of future events or
circumstances, unless otherwise required to do so by law.
For
further information: Deborah Thiel, V.P., Corporate Development, Cell: (604)
512-9691, Toll Free: (877) 646-4488, Email: dthiel@solexresources.com, Website: www.solexresources.com
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