Last checked at 11 Jan 2010 12:20
Orosur Mining Inc. Grants Option to Gladiator Resources to Earn Up to 80% Interest in Iron Ore, Manganese Ore and Base Metals Prospects in the Isla Cristalina Belt in Uruguay
Orosur Mining Inc. ("OMI" or the "Company") (TSX VENTURE: OMI) (LSE: OMI), a South American gold production and exploration company, announces that it has entered into an Option Agreement with Gladiator Resources Limited ("Gladiator") which provides Gladiator the right to earn up to an 80% interest in the iron ore, manganese ore and base metals potential in OMI's project area in the Isla Cristalina Belt ("ICB") in Uruguay (the "Agreement").
During the option period Gladiator is committed to spend US$ 150,000 on evaluation work and produce a report covering the iron ore and manganese resource potential of the ICB project area together with a conceptual development plan. Based on Gladiator's initial understanding of the resource potential of the Project area, a number of development possibilities are expected to be considered including the production of concentrates, production of iron ore pellets and production of pig iron and ferro alloys. Gladiator must complete its report and may exercise the option to proceed on or before 30 April 2010 by entering into a Definitive Agreement.
Upon execution of a Definitive Agreement Gladiator will issue to OMI AUD 100,000 in fully paid shares in Gladiator at market value calculated over the preceding five (5) days trading period.
Following this initial payment, Gladiator will be entitled to earn a 20% interest by spending US$1,000,000 on work programs. Gladiator may, at its option, earn a further 31% by spending a further US$4,000,000 taking its total interest to 51%.
Gladiator may then elect to earn a further 29% taking its interest to 80% by producing a Bankable Feasibility Study on or before 31 December 2014.
The Agreement is otherwise considered standard for agreements of this nature.
OMI has explored the ICB project area for gold and precious metals. OMI retains the rights to gold, silver and diamonds over the project area. OMI will provide GLA with airborne and ground geophysics, geological maps, drilling and other data relevant to iron ore exploration in the project area.
David Fowler, Chief Executive Officer of OMI stated: "Historical work has indicated that there is the potential to define significant iron ore resources within the Isla Cristalina Belt. We are pleased to partner with Gladiator's management, who has significant experience in developing iron ore projects, to investigate this potential."
ENDS
Neither 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 release.
About Orosur Mining Inc.
Orosur Mining Inc. is a gold producer and exploration company focused on identifying and developing gold projects in Latin America. The Company is a fully integrated mining company, possessing the skills necessary to explore and develop its discoveries. The Company operates the only producing gold mine in Uruguay (San Gregorio), and has assembled an exploration portfolio of high quality assets in Uruguay, Chile and Argentina.
The Company is quoted in Canada (TSX Venture Exchange) and London (AIM) and Matrix Corporate Capital LLP is its Nominated Adviser and Broker.
About Gladiator Resources
Gladiator Resources Limited is a mineral exploration and development company listed on the Australian Securities Exchange under the symbol GLA. It has recently entered into an Option Agreement for licensing rights to a technology dealing with biomass pyrolysis carbonization processes. The technology has been developed in Brazil and is known as the DPC process. The technology provides the opportunity to develop sustainable and economic uses for eucalyptus and other plantation timbers in Australia and elsewhere apart from their use as woodchips. The most attractive benefit of the DPC process is that it is far less labour intensive and better controlled with higher productivity and efficiency than traditional carbonization processes, with significantly better environmental impact. It is the intention of GLA to investigate and use the DPC technology to further advance these applications.
Forward Looking Statements
This news release may contain certain information that constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as "plan," "expect," "intend," "believe," "anticipate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the exploration and development of mineral properties and other factors described above and in the Company's most recent annual information form under the heading "Risk Factors" which has been filed electronically by means of the Canadian Securities Administrators' website located at www.sedar.com. The Company disclaims any obligation to update or revise any forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.
For further information, please contact:
Orosur Mining Inc.Puntas de Santiago 1604Montevideo, UruguayC.P. 11500
Attention:Orosur Mining Inc.David Fowler, CEO: + 598 2 6016354; david.fowler@ume.com.uyIgnacio Salazar, CFO: + 598 2 601 6354; ignacio.salazar@ume.com.uy
Matrix Corporate Capital LLPLouis Castro, +44 (0) 203 206 7209Tim Graham, +44 (0) 203 206 7206
The Sherbourne GroupForbes West (NA toll Free) 888-655-5532
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