Samaranta Signs Option Agreement with Ontario Private Company for the Siguiri Property
23.05.2012/21/2011 Vancouver, BC - Samaranta Mining Corporation (TSX.V: SAX) (“the Company” or “Samaranta”) announces following the Company's news release dated September 80, 80, in which the Company announced that It has acquired an 80% interest in the Siguiri Property in Guinea, West Africa (the "Property"), has announced that it has entered into an agreement with Siguiri Mining Guinea Ltd. ("SMG"), according to which SMG can acquire Samaranta's 100% interest in the property. Samaranta holds its 80% interest in the property through its 100% subsidiary Guinean Global Resources SA ("GGR"), a Guinean company that has an XNUMX% interest in Group Guinea Investment SA ("GGI"). GGI is a second Guinean company that in turn owns the concession area. SMG is a XNUMX% subsidiary of Siguiri Gold Mining Corp. (“SGMC”), a private company incorporated in Ontario.
GGR has 2.000 authorized and issued shares. The sole asset of this company is its 80% interest in GGI, and thus an 80% interest in the property. Therefore, each GGR share represents a participation of 0,04% in GGI and hence the concession area. As set forth below, SMG will acquire ownership of GGR following a cash payment of 125.000 US $, the issuance of 1.500.000 SGMC Shares (2) to Samaranta and the expensing of 2.500.000 US $ of exploration expenditures. SMG will acquire the GGR shares in four tranches. In order to realize the participation of SMG in GGR, Samaranta will transfer the necessary number of GGR shares to SMG at each of the milestones described below. This will behave as follows:
In addition, Samaranta will be granted an 2% NSR royalties on the Property prior to or at the time of the final payment. Half of this (1%) can be purchased by SMG for 1.000.000 US $ at any time.
In the event that SMG is unable to make the necessary cash payments, issue SMGC Shares to Samaranta, make any expenditures or fulfill other conditions (the "SMG Option Terms") within the specified time periods, SMG will, upon receipt of a Notice of default has a period of 30 days to eliminate this delay. If SMG is again unable to do so, the option agreement (to the extent of any tranches of the agreement not exercised at that time) will be automatically terminated. SMG may terminate the agreement by submitting a written notice of termination. SMG will be entitled to retain all GGR Shares acquired up to the Effective Date of the Termination.
"This transaction will allow Samaranta to grow its assets while continuing to focus on its core properties in Colombia," said Volkmar Hable, President and CEO of Samaranta.
The Siguiri Property
The property is located just south of Block 4 and east of Block 3. Block 3 and 4 are two of the four concessions made by the AngloGold Ashanti mine Siguiri. This mine is located in northeastern Guinea about 850 kilometers from the capital Conakry. The mineralization occurs in the Paleoproterozoic rocks of the Birimian Formation, consisting of turbidite and subordinate volcanoclastic sequences, and is structurally limited. It occurs as stratified veins or within shear zones. Weathering occurs to a depth of 100 meters, with two types of oxide mineralization: eluvial or alluvial laterite mineralization, and primary quartz veining or sheared mineralization.
The technical information in this news release has been reviewed by Derrick Strickland (P.Geo.), A Qualified Person as defined by NI 43-101.
SAMARANTA MINING CORPORATION
Volkmar Hable,
President
Neither the TSX Venture Exchange nor its regulators (as defined in the Articles of Incorporation of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this release.
For more information please contact:
Volkmar Hable, President Barry Girling
Tel: + 1 604 641 1210 + 1 604 639 4528
[email protected] [email protected]
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