Santa Fe Metals Corporation-Enters into Definitive Agreement for Iron Range and Grants Stock Options
25 April 2014 - 11:50PM
Marketwired
Santa Fe Metals Corporation-Enters into Definitive Agreement for
Iron Range and Grants Stock Options
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Apr 25, 2014) -
Santa Fe Metals Corporation (TSX-VENTURE:SFM) ("SFM" or the
"Company") announces it has signed a definitive agreement with
Eagle Plains Resources Ltd. ("EPL") specifying the terms for an
earn-In option (the "Option") to acquire a 60% interest in EPL's
Iron Range Project ("Iron Range"). Iron Range hosts the same
stratigraphic rock assemblage as the historic Sullivan Mine, one of
the largest sedimentary exhalative (SEDEX) silver-lead-zinc
deposits in the world, located approximately 60-km north east of
Iron Range.
As previously announced on March 18, 2014, Iron Range has had
abundant exploration success and many defined targets. SFM and EPL
plan to focus on Sullivan-time stratigraphy and the regional-scale
fault complex at Iron Range for sedimentary exhalative (SEDEX) and
Iron-Oxide-Cu-Au (IOCG) target types on the property. The 630 km2
Iron Range project, located near Creston, BC, is owned 100% by EPL
subject to a 1% NSR on a portion of the claim group. A complete
description of past drill and other exploration results can be
viewed at http://www.eagleplains.com/projects/bc/ironrange/.
The Option comprises a commitment by SFM over a 5-year period to
earn a 60% interest in Iron Range by incurring exploration
expenditures on Iron Range, issuing SFM shares and making cash
payments to EPL, subject to regulatory approval including without
limitation that of the TSX Venture Exchange (the "Exchange"):
- On Exchange approval: issuing 1 million SFM shares
- On or before December 31st, 2014: incurring $150K in
exploration expenditures, and issuing an additional 1 million SFM
shares and an additional $25K in cash;
- On or before December 31st, 2015: incurring an additional $350K
in exploration expenditures, and issuing an additional 1 million
SFM shares and an additional $50K in cash;
- On or before December 31st, 2016: incurring an additional $1.5
million in exploration expenditures, and issuing an additional 1
million SFM shares and an additional $75K in cash;
- On or before December 31st, 2017: incurring an additional $3.0
million in exploration expenditures, and issuing an additional 1
million SFM shares and an additional $150K in cash; and,
- On or before December 31st, 2018: incurring an additional $5.0
million in exploration expenditures, and issuing an additional 1
million SFM shares and an additional $200K in cash.
All securities issued by SFM in connection herewith will have a
statutory four month hold period.
When all of the conditions of the definitive agreement have been
met and SFM has exercised the Option, a 60/40 joint venture will be
formed to advance Iron Range. EPL will be the operator of the Iron
Range project during the term of the Option.
Grant of Stock Options
The Company reports that pursuant to its stock option plan and
subject to regulatory approval, a total of 1,834,000 incentive
stock options have been granted to directors, officers and
consultants of the Company. The options are exercisable at a price
of $0.10 per share for a period of five years.
The TSX Venture Exchange has in no way passed upon the
merits of the proposed transaction and has neither approved nor
disapproved the contents of this news release.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this news release.
Santa Fe Metals CorporationScott E. Broughton, P.Eng.President
and CEO604.684.2900www.santafemetals.com
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