Marifil Signs Letter of Intent for
the K-2 Potash Property
Las Vegas, Nevada -- -- Marifil Mines Ltd. (TSXV: MFM) ("Marifil"
or "the Company")
announces that it has signed a Letter of
Intent of behalf of itself and Marifil's subsidiary Oxbow Holdings Corp. with Saccharum Energy Corp. (SHM: TSX-V) of Calgary, AB,
for the K-2 Potash property in Neuquen
Province, Argentina.
Saccharum has agreed to pay $10,000 for an exclusive 60
day due diligence period to check title and further agrees to purchase
all of the shares of Oxbow for a price of one cent per share. Marifil then agrees to restructure its underlying
agreement with Oxbow whereby Saccharum can earn
a 75% interest in the K-2 property.
Saccharum will pay Marifil
US$500,000 in cash plus 2,000,000 Saccharum
common shares over three years. The first year's payment to Marifil will be US$150,000 in cash and 1,000,000
shares upon Saccharum's completion of a financing.
Saccharum further agrees to spend US$4,500,000 in work
over the next four years as follows: US$1,000,000 per year for the
first three years and US$1,500,000 during the fourth year.
Saccharum will also pay Marifil
performance bonuses of 1,500,000 shares upon completion of a positive NI
43-101 compliant resource and a further 1,500,000 shares following
completion of a Feasibility Study. If Saccharum's
share structure exceeds 75,000,000 shares during this agreement the
shares payable to Marifil shall be adjusted
upward proportionately. Upon completion of Saccharm's
earn-in all furher expenditures shall be shared
75:25. If a partner fails to pay its share that partner shall be
diluted to a 1.5% Net Smelter Royalty. Saccharum
shall have the right to purchase Marifil's
royalty for US$15,000,000.
Saccharum is also required to restructure its Board by
effecting the appointment of Messrs. Todd Montgomery and Brent Walter as
directors.
Mr. John Hite remarks, "We believe this is
an important milestone for the Company. Mr. Montgomery was formerly
President and CEO of Anglo Potash and Mr. Walter was a director of Anglo
Potash. Both men guided Anglo through the discovery and development
phase, brought in BHP Billiton to develop the potash deposit, and
eventually sold Anglo's remaining 25% of the deposit for US$284,000,000.
Bringing these gentlemen onto Saccharum's
board will lend credibility to the development of this project."
Marifil also agreed to give Saccharum
Right of First Offer for the Company's K-3 potash project located in
neighboring Mendoza Province.
This agreement is subject to approval by the
Boards of Directors of Saccharum, Marifil, and Oxbow and the TSX. A small
finder's fee is payable to a third party.
For further information on the Company and its
projects, please refer to Marifil's website:
www.marifilmines.com.
For Further Information
Contact:
This press release has been
reviewed and approved by John Hite, President of Marifil
Mines Ltd. and by Richard Walters, Vice President under whose directions
the exploration program is being carried out. Mr. Hite and Mr.
Walters are Qualified Persons as defined by National Instrument
43-101.
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