VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct 27, 2014) - Salazar Resources Ltd. (TSX VENTURE:SRL)(CCG.F) (the "Company") provides an update on the letter-of-intent ("LOI") with Guangshou Group Co. Ltd. ("Guangshou"), a privately-held Chinese international mining conglomerate, for a joint venture to develop the Curipamba Project.
Pursuant to the LOI the Company has been working to complete a private placement financing of 4,545,455 units (a "Unit"), at a price of $0.22 per Unit, for gross proceeds of $1,000,000. Each Unit consists of one common share (a "Share") of the Company and one-half of one share purchase warrant (a "Warrant"). Each whole Warrant entitles the holder to purchase an additional Share of the Company for a period of 18 months from the closing date at a price of $0.35 per Share. The Company has received initial funding of $500,000 and has issued 2,272,727 Units. Completion of the remaining $500,000 of the $1,000,000 private placement remains a condition precedent to moving to the Definitive Agreement. A finder's fee of 6% of gross proceeds is payable in cash to Scarsdale Equities LLC.
The Company has been working with Mr. Guoqin Huang, the Chairman and CEO of Guangshou, to advance completion of the private placement and the joint venture negotiations. In September Mr. Huang met with the Company's management team in Ecuador for initial joint venture meetings. On completion of the meetings in Ecuador Mr. Huang returned to China and the Company has recently been advised that Mr. Huang was involved in an automobile accident. Mr. Huang has suffered serious injuries and is unable to participate in the day to day management of Guangshou or to advance negotiations to finalize the Definitive Agreement. Representatives of Guangshou have advised the Company that Guangshou remains committed to completing the Definitive Agreement with the Company, but have requested additional time to finalize the Definitive Agreement. The Company has agreed to amend the LOI to provide additional time to Guangshou while allowing the Company to investigate other opportunities for moving the Curipamba project forward.
Mr. Salazar, CEO of Salazar Resources, stated: "We were extremely saddened to hear this news from China regarding the health of Mr. Huang. Our thoughts and prayers are with him and his family and we wish him the best for a full recovery. In the interim we must work in the best interest of the Company and our goal of developing the El Domo deposit."
More news regarding this transaction will be announced when it becomes available.
About Salazar Resources Limited
Salazar Resources Ltd. is a publicly-listed (TSX VENTURE:SRL)(CCG.F) 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 having 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.
ON BEHALF OF THE BOARD OF SALAZAR RESOURCES LIMITED
Fredy Salazar, President & CEO
Salazar Resources Limited
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.
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.