Solid Resources enters into cooperation agreement with Glencore
VANCOUVER, - Solid Resources Ltd. (“Solid” or the “Company”) (TSX-V: SRW) (Frankfurt: YRS) is pleased to announce the signing of a definitive and exclusive collaboration agreement (“the Agreement”) with a wholly owned subsidiary of Glencore Xstrata plc (“Glencore”) known for collaborating on the Cehegin Project. The agreement also stands for a possible joint venture between the two companies to advance the development of the Cehegin iron ore mine, which was already producing in the province of Murcia in southeastern Spain.
Under the terms of the Joint Venture Agreement ("the JVA"), Glencore will receive 20% of the Cehegin Project and Solid will retain the remaining 80% share. The joint venture is pursuing exploration and phased development studies to build a new iron ore mine.
Greg Pendura, CEO of Solid Resources said, “A strategic partnership with Glencore is a huge step forward in bringing the Cehegin Project into production. Through Glencore, Solid gains access to world-class expertise in mining, global marketing and logistics. The strength of Glencore, combined with the historical drilling and production data available from the Cehegin iron ore mine, will be of great benefit in moving the project forward. "
Important conditions of the potential prison are:
• Glencore holds a share of 20% and Solid the remaining 80% stake.
• Glencore exclusively buys the entire production.
• Agreement to jointly organize financing with third parties if needed.
• Dilution by non-financial partners using fair market value.
In addition, upon completion of the Agreement, Solid will issue to Glencore twelve million (12.000.000) warrants for the purchase of the corresponding common shares in Solid's capital. The exercise price is 0,19 CAD during the period from the date of issue and the 18. October 2014 and at 0,26 CAD after the 19. October 2014 until expiration on 18. October 2015. The warrants are allotted and exercisable at 50% on the date of signing the agreement and 50% when Glencore has paid its share of the costs for the start-up exploration and study phase of the development programs. The warrants and each common share issued after exercise are subject to a holding period until 18. Februar2014.
About Solid Resources
Solid Resources is a Canadian junior mining company focused on Spain. The focus is on the exploration and development of rare and industrial raw materials. The company is currently in the late stages of reopening of the Cehegin iron ore mine in southeastern Spain. They are also applying for a mining license on the Alberta-1 tantalum / tin and lithium deposit in northwestern Spain.
About Glencore Xstrata plc
Glencore is one of the world's largest globally diversified commodities companies. As a market leader and integrated producer and commodity marketer with a balanced portfolio of diverse commodity resources, you are in a strong position to master the entire process chain and create value. This ranges from the search for raw material sources deep in the ground to the production of products for international customers. The Group's industrial and marketing activities are supported by a global network with 90 offices in over 50 countries. Their widely distributed operations include through 150 mining and metallurgy operations, offshore oil production, agriculture and agricultural processing. The company employs approximately 190.000 people including subcontractors.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as defined in the rules of the TSX Venture Exchange) accepts any responsibility for the accuracy or consistency of this press release.
For more information please contact:
Solid Resources Ltd
Greg Pendura
President & CEO
Solid Resources Ltd.
Ph: + 1 (780) 800-0726
www.solidresources.com
Swiss Resource Capital AG
Jochen Staiger
CEO
ppgad@pucrs.br
Phone:+ 41 71 354 8501
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