Last checked at 4 Aug 2010 14:25
Orosur Mining Inc.
Option and Joint Venture Agreement re Iron Ore, Manganese Ore and Base Metal Prospects
Orosur Mining Inc. ("OMI" or the "Company") (TSX-V: OMI) (LSE: OMI) a South American gold production and exploration company, announces that it has entered into a Definitive Option and Joint Venture Agreement (the "Definitive Agreement") with Gladiator Resources Limited ("GLA") (ASX: GLA) which provides GLA the right to earn up to an 80% interest in OMI's Iron Ore, Manganese Ore and Base Metals Prospects (the "Assets") in the Isla Cristalina Belt in Uruguay.
OMI CEO David Fowler stated: "Gladiator Resources' initial due diligence on the Isla Cristalina Iron Project has confirmed the potential for the development of a pig iron operation. Drilling and feasibility work are expected to commence this month. Orosur will not be required to invest further funds in the project until feasibility studies have been completed. We look forward to results of this work over the coming year."
The Company first announced the Option Agreement on 11 January 2010 and on 4 May 2010 advised that the Option had been exercised subject to the execution of the Definitive Agreement and the presentation of the report as referred to in the Option Agreement.
The Definitive Agreement has now been executed and accordingly GLA will issue fully paid shares with a market value of AUD100,000 to OMI calculated using the average trading price of GLA shares over the preceding five day trading period.
The Definitive Agreement with OMI provides for GLA to earn a 20% interest in the Assets by expending US$1,000,000 on work programs. GLA may at its discretion earn a further 31% by expending a further US$4,000,000 taking its interest to 51%. A further 29% may be earned by GLA taking its interest up to 80% by producing a bankable feasibility study on or before 31 December 2015.
The Agreement provides for OMI to retain the mineral rights to gold, silver and diamonds within the project area.
Additional information on conceptual studies and work programs has been provided by GLA in its press release dated 4 August, 2010.
Forward Looking Statements
All statements, other than statements of historical fact, contained or incorporated by reference in this news release, including any information as to the future financial or operating performance of the Company, constitute "forward-looking statements" within the meaning of certain securities laws, including the "safe harbour" provisions of the Securities Act (Ontario) and the United States Private Securities Litigation Reform Act of 1995 and are based on expectations estimates and projections as of the date of this news release. There can be no assurance that such statements will prove to be accurate, such statements are subject to significant risks and uncertainties, and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements include, without limitation success of exploration activities; permitting time lines; the failure of plant; equipment or processes to operate as anticipated; accidents; labour disputes; requirements for additional capital title disputes or claims and limitations on insurance coverage. The Company disclaims any intention or obligation to update or revise any forward looking statements whether as a result of new information, future events and such forward-looking statements, except to the extent required by applicable law.
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
Orosur Mining Inc. is a fully integrated gold producer and exploration company focused on identifying and developing gold projects in Latin America. The Company operates the only producing gold mine in Uruguay (San Gregorio), and has assembled an exploration portfolio of high quality assets in Uruguay and Chile.
The Company is quoted in Canada (TSX Venture Exchange: OMI) and London (AIM: OMI).
For further information, please contact:
Orosur Mining Inc David Fowler, CEO:Ignacio Salazar, CFO + 598 2 6016354; info@orosur.ca
or
Matrix Corporate Capital LLP Louis Castro, +44 (0) 203 206 7209Tim Graham, +44 (0) 203 206 7206
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