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On
November 29, 2010 Razor Resources Inc. ("Razor Resources Inc." or
the "Company") announces that an agreement has been made between
the Company, Compania Minera Cerros Del Sur S.A. ("Cerros"), and
Mayan Gold, Inc. ("Mayan") to amend and improve their previous
agreement regarding the ownership and operation by the Company of the Clavo
Rico mine located in the Cholutecca region of Honduras. This agreement to
amend the Stock Exchange Agreement dated February 9, 2010 was completed on
November 26, 2010.
On
February 9, 2010, Razor acquired 99% of Cerros, which owns the Clavo Rico
mine, through a share exchange agreement with Mayan. In exchange for their interest
in Cerros, Mayan received 35.5M shares of Razor Resources, Inc. with a
valuation of $17.75M USD. In addition, payment obligations to Mayan totalling
$2.0M USD, of which $570,000 has been paid by the Company earlier this year,
were agreed upon. In total, the valuation of the Clavo Rico mine acquisition
by the Company approximated $20M USD.
Razor,
under the new agreement, has now committed to investing $2.0M USD over the
course of the next six months. These funds will be utilized to upgrade and
improve equipment, increase the geological team, commence an expanded drill
program, and construct and install a heap leach pad. The Company is confident
that these measures will lead to an immediate and significant increase in
production that will allow the Company to build further shareholder value.
Forward-Looking
Statements
This
current report contains "forward-looking statements," as that term
is defined in Section 27A of the United States Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. Statements in this press
release which are not purely historical are forward-looking statements and
include any statements regarding beliefs, plans, expectations or intentions
regarding the future, including but not limited to, continuing production
from the "Clavo Rico Mine," or the generation of positive cash flow
as a result, updating of the corporate website or the availability of an
independent geological report outlining the concessions, their production,
and their potential.
Actual results
could differ from those projected in any forward-looking statements due to
numerous factors. Such factors include, among others, the inherent
uncertainties associated with mineral exploration and difficulties associated
with obtaining financing on acceptable terms. We are not in control of gold
prices and these could vary to make development uneconomic. These
forward-looking statements are made as of the date of this news release, and
we assume no obligation to update the forward-looking statements, or to
update the reasons why actual results could differ from those projected in
the forward-looking statements. Although we believe that the beliefs, plans,
expectations and intentions contained in this press release are reasonable,
there can be no assurance that such beliefs, plans, expectations or
intentions will prove to be accurate. Investors should consult all of the
information set forth herein and should also refer to the risk factors
disclosure outlined in our most recent annual report for our last fiscal
year, our quarterly reports, and other periodic reports filed from
time-to-time with the Securities and Exchange Commission.
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