VANCOUVER, BRITISH COLUMBIA -- (Marketwired - Apr 25, 2014) -
Santa Fe Metals Corp. (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 km
2 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 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.
Contact
Santa Fe Metals Corp.
Scott E. Broughton, P.Eng., President and CEO
604.684.2900
www.santafemetals.com
