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Tara
Minerals Corp. (OTC.BB:TARM - News) (Berlin:6T3 - News) is pleased to announce
that its subsidiary, Adit Resources Corp., has
closed an equity financing for $500,000. The $500,000 investment into Adit is through a private placement with Yamana Gold Inc. of 500,000 units exchangeable for
500,000 common shares and 250,000 common share purchase warrants, each
exercisable for one common share for a term of three years at an exercise
price of $1.50 per share.
Adit
has also signed a letter of intent with Yamana Gold
Inc. (the "Investor") that grants an option to acquire up to a 70%
interest in the Picacho gold/silver project. A
definitive agreement is expected to be completed within 45 days. Upon
completion of the definitive agreement, Adit
anticipates receipt of an additional investment of $2.5 million to be
completed on the same terms. From this initial total equity investment of $3
million, Adit will be required to spend $2 million
advancing exploration work on the Picacho project.
The definitive agreement will allow the Investor the right to maintain or
increase its pro rata Adit ownership interest up to
19.9% by participating in any form of future equity financing of Adit.
Terms
of the agreement also allow the Investor to earn an initial 51% by spending
$5 million on the project within 30 months of the execution of the definitive
agreement. In addition to these expenditures, Adit
will receive payments totaling $1 million as expenditure milestones are
achieved. Upon earning 51%, the title and rights to Picacho
will be transferred into a joint venture owned 51% by the Investor and 49% by
Adit.
The
Investor will then have the option to increase its interest to 70% by
spending an additional $9 million within 66 months of the execution of the
definitive agreement. In addition to these expenditures, Adit
will receive payments totaling $2 million as expenditure milestones are
achieved. Upon the Investor earning 70%, Adit has
the right to request funding for 100% of Adit's
shareholder commitments, in the form of a carried funding loan advance, to
the joint venture in connection with the completion of a feasibility study.
Work
to date on Picacho has identified nine gold-bearing
veins over four mineralized target areas with an aggregate strike length of
over 10.8 km. Drilling of approximately 5,300 meters has been completed along
only 600 meters of the vein system, with true width intercepts including 11.3
m of 15.6 g/t gold, 6.1 m of 4.7 g/t gold, and 9.4 m of 7.8 g/t gold.
The
Picacho project area consists of 7,060 ha and is
located in Sonora, Mexico, 100 km south of the U.S.A border. The area has a
high level of exploration activity, is close to a national paved highway,
power grid, and a 1,200 m airstrip.
Robert
Wheatley, President of Adit, commented, "We
are honored to have a proven explorer and operator invest
in the potential shown by Picacho. I would like to
thank our geologists and local technicians for their efforts in advancing the
project as well as our shareholders for their patience and their faith in the
project."
"We
are pleased with Adit's new opportunity and
continue to focus on the advancement of Tara Minerals' tremendous property
portfolio," said Mr. Francis Biscan Jr.,
President of Tara Minerals.
About
Tara Minerals Corp. (http://www.TaraMinerals.com)
Tara
Minerals Corp. is progressing towards advancing development of its Don Roman
mine and mill, located in Choix, Mexico. Management
is focused on creating long-term shareholder value and deploying its capital
to advance its projects by enhancing resources, further outlining new
discoveries/targets, and acquiring additional strategic assets. Tara's
strength in recognizing value early and strategy of reducing risk through a foundation
of cash flow, positions it for low-risk value creation. Tara Gold Resources
Corp. (Pinksheets:TRGD
- News) (Frankfurt:T8N - News) owns 40,898,190 shares
of Tara Minerals.
About
Adit Resources Corp. (http://www.AditResources.com)
Adit
Resources Corp. is a growth-oriented precious metals exploration and
development company with an objective to become a significant precious metals
producer by exploring, developing, and reinitiating production at the Picacho project in Mexico and other North American
exploration/advanced-stage projects.
Safe
Harbor Statement under the Private Securities Litigation Reform Act of 1995:
The statements contained herein which are not historical are forward-looking
statements that are subject to risks and uncertainties that could cause
actual results to differ materially from those expressed in the
forward-looking statements, including, but not limited to, certain delays
beyond the company's control with respect to market acceptance of new
technologies or products, delays in testing and evaluation of products, and
other risks detailed from time to time in the Company's filings with the
Securities and Exchange Commission.
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