Orosur Mining Inc.: Iron Ore, Manganese Ore and Base Metals Farm Out
Orosur Mining Inc.: Iron Ore, Manganese Ore and Base Metals Farm Out
Orosur Mining Inc.
Orosur Mining Inc. (“OMI” or the “Company”) (TSX VENTURE: OMI) (LSE: OMI) today announces that on 30 April 2010 Gladiator Resource Ltd. (“GLA” or “Gladiator”) (ASX: GLA) has exercised its option pursuant to the Option Agreement announced on 11 January 2010 whereby GLA may earn an interest of up to 80% in the iron ore, manganese ore and base metals (¨”Assets”) in OMI’s project area in the Isla Cristalina Belt in Uruguay. OMI retains the rights to gold, silver and diamonds over the project area.
David Fowler, Chief Executive Officer commented: “We are pleased to partner with Gladiator’s management team who have significant iron ore experience. Initial field work is confirming historical results which identified the potential to define significant iron ore resources within the Isla Cristalina Belt. Gladiator has moved quickly to raise the funding to complete its work program in the coming year and we look forward to supporting them in progressing the project”.
The Option has been exercised subject to the execution of a Definitive Agreement detailing the farm-in joint venture arrangements. Upon execution of the Definitive Agreement GLA will issue AU$ 100,000 worth of fully paid shares to OMI at market value, calculated over the preceding five day trading period. The execution of the option entitles GLA to commence earning the initial 20% interest in the project by spending $US 1,000,000.
GLA will be entitled to earn a 20% interest in the Assets by spending US$ 1,000,000 on work programs. GLA may, at its option, earn a further 31% by spending a further US$ 4,000,000 taking its total interest to 51%. GLA 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.
Based on GLA’s initial understanding of the resource potential of the Project area, a number of development possibilities are expected to be considered:
1. Production of iron ore concentrates
2. Production of maganiferrous iron ore concentrates
3. Production of iron ore pellets
4. Production of pig iron and ferro alloys.
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 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).
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Orosur Mining Inc |
| David Fowler, CEO: |
| Ignacio Salazar, CFO |
| + 598 2 6016354 |
| or |
|
Matrix Corporate Capital LLP (Nominated Adviser & Broker) |
| Louis Castro, +44 (0) 203 206 7209 |
| Tim Graham, +44 (0) 203 206 7206 |
| or |
| In North America |
| Forbes West, 416-203-2200 |
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