Helio Resource Corp.
(the “Company” or “Helio”) (TSX-V: HRC) is
pleased to announce that it has signed a binding Letter of Intent with
TransAfrican Minerals Limited (“TransAfrican”) in connection
with eight licences in Namibia, whereby TransAfrican has the option of
earning up to a 70% interest in the licences by solely funding a bankable
feasibility study. The three stage deal is summarised below:
Stage 1
– to earn a 51% interest
Date for Completion
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Cash Payments to be Made
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Minimum Exploration and Development
Expenditures to be Incurred
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Upon Signing
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C$100,000 1
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--
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End of Year 12
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C$100,000
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C$750,000 1
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End of Year 22
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C$100,000
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C$1,000,000
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End of Year 32
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C$200,000
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C$1,250,000
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End of Year 42
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C$500,000
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C$2,000,000
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TOTAL
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C$1,000,000
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C$5,000,000
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- These items,
being the cash payment of C$100,000 and the minimum expenditure
requirement of C$750,000 are firm binding commitments on
TransAfrican;
- From execution
of this LOI by the parties.
Stage 2 – to earn an additional 9% interest (for a total
of 60%)
TransAfrican
may earn an additional 9% interest in the licences by spending an
additional C$5,000,000 on exploration within 24 months of successful
completion of Stage 1.
Stage 3 - to earn an additional 10% Interest (for a total of
70%)
TransAfrican may earn an additional 10% interest by solely funding a Bankable
Feasibility Study within 48 months of successful completion of Stage 2.
THE LICENCES
The licences that fall under this agreement are Tevrede North, Tevrede
West, Tevrede South, Honib, Oasis, Huab, Borwa, and Fransfontein. All
of these licences are located within the lower Proterozoic-aged Kamanjab
Inlier. Work completed by Helio to date has identified compelling
drill targets on the following licences:
- Tevrede North
(copper-zinc-silver-gold)
- Tevrede South
(copper-gold)
- Honib
(zinc-lead)
- Oasis
(lead-zinc-copper-silver)
More detailed project summaries are available on the Company’s
website at www.helioresource.com.
ABOUT TRANSAFRICAN MINERALS LIMITED
TransAfrican Minerals Limited is an emerging, privately-funded global
mining company, led by a strong management team made up of former senior
investment bankers and mining executives with more than 200 years of
combined experience funding, developing and managing global mining
projects.
The company is led by Mr. Mohamed Matongo as its Deputy Chairman and
President. Mr. Matongo was formerly a senior banker (Sr. Vice
President) with Citibank in London, Kuala Lumpur, Abhu Dhabi and
Johannesburg. He founded Bayete Resources Pty Ltd. four years ago and was
the CEO and deputy Chairman until 2006, when Bayete Resources Pty Ltd
sold its interests to Troy International UK Limited. Mr. Matongo
also formed Tegeta Exploration and Mining Pty Ltd, a successful coal
producer. During the last 5 years he has facilitated the creation
of many emerging (BEE) companies in South Africa, and he specialises in
deal origination, conceptualisation, mergers and acquisitions.
Through acquisitions and joint ventures, TransAfrican has built up a portfolio
of mining and exploration projects (copper, uranium, cobalt, gold and
coal) in Zambia, DRC, Mozambique, Madagascar, Mali, Indonesia, Australia,
Mongolia and Argentina.
MANAGEMENT COMMENT
Management of Helio is very pleased with this transaction. It
addresses one of the major business objectives of the Company, which is
to find well funded joint venture partners for all of the Companies
projects outside of Tanzania. This approach allows for the
advancement of Helio’s high quality exploration targets in Namibia,
and enables the Company to focus its treasury on the development of the
SMP Gold Project in Tanzania
Helio now has 17 Namibian licences under option to well-funded
partners.
Helio Resource Corp. is a dynamic, technically-driven mineral exploration
company, focused on high-quality project generation in southern
Africa. Helio is actively exploring 27 prospective gold, base-metal
and diamond properties in Namibia, Botswana, Mozambique and
Tanzania. The main focus for the Company is the development of the
SMP Gold Project in Tanzania.
For additional information, please contact Richard Williams or Irene
Dorsman at +1 604 638 8007 or by e-mail to richard@helioresource.com or irene@helioresource.com.
ON BEHALF OF THE BOARD OF
DIRECTORS
“Richard D.
Williams”
“Chris MacKenzie”
Richard D. Williams,
P.Geo
Christopher J. MacKenzie, C.Geol.
CEO
COO
The TSX Venture Exchange has
not reviewed and does not accept responsibility for the adequacy or
accuracy of this release.
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