TORONTO, ONTARIO--(Marketwire - Oct. 14, 2011) -
NOT FOR DISSEMINATION IN THE UNITED STATES OR OVER UNITED STATES NEWSWIRE SERVICES
Montero Mining and Exploration Ltd. (TSX VENTURE:MON) ("Montero") is pleased to announce that it has elected to complete the arm's length acquisition of four phosphate exploration projects located in South Africa, subject to regulatory approval and closing.
On October 18, 2010 a subsidiary of the Corporation entered into an amended binding term sheet agreement providing for the right to acquire Eurozone Investments Limited ("Eurozone"). Celtic Trust Company Limited and its subsidiaries hold interests in four phosphate exploration projects in South Africa (the "Phosco assets"). The Corporation paid $100,000 to the vendor in consideration for receiving an exclusivity period to conduct due diligence.
The purchase price for the Phosco assets is the issuance of 2,500,000 shares of Montero. In addition, Montero is required to complete an initial exploration program on one (the Bierkraal Project) of the four projects within 18 months of closing, which includes drilling. A further 1,000,000 shares of Montero shall be issued to the vendor within 18 months of the closing date if Montero delivers a NI 43-101 Report identifying a phosphate resource on all or part of the Bierkraal Project, or if Montero otherwise elects to maintain the Bierkraal Project. If the Bierkraal Project is not maintained by Montero it is to be returned to the vendor. Upon closing, Montero will have 100% ownership of the other three projects and there is no further obligation to the vendor with respect to those projects after closing.
Dr. Tony Harwood, President and Chief Executive Officer of Montero commented, "We are very pleased to have extended the option period for the acquisition of the Phosco assets as it has provided time to complete the due diligence on the projects. We believe that the Phosco assets have the potential to be mineable resources and would be a great asset to the Montero portfolio. We look to create maximum value for shareholders through the acquisition and exploration of properties with huge potential and continue to strive to generate value through development at our flagship Wigu Hill Rare Earth Project in Tanzania as we focus on bringing this into production."
The Phosco project covers four phosphate exploration projects in South Africa: these are Duyker Eiland, Phillips Kraal and Lamberts Bay in the Western Cape and Bierkraal in the Northwest Province.
At the Western Cape's projects the geology is marked by the presence of Tertiary/Quaternary sediments consisting of calcareous and aeolian sands, calcretes and phoscretes. At Duyker Eiland the phosphate mineralization occurs as rounded and sub-rounded, polished collophane grains. Phillips Kraal and Lamberts Bay projects show a similar geologic setting to Duyker Eiland. The Bierkraal project area is located in an apatite rich layer of the Bushveld Igneous Complex.
Due Diligence comprised the compilation of historic data, desktop studies, field visits, mapping and drilling. The reverse circulation/aircore drilling program was undertaken at Duyker Eiland and Phillips Kraal during the 2011 due diligence period. The results of this program with assays and preliminary metallurgical testing from Duyker Eiland and Phillips Kraal is being compiled into a NI 43-101 technical report by AMEC Earth and Environmental (UK) Limited. This report is expected shortly and will be filed on www.sedar.com upon completion of the transaction.
About Montero Mining and Exploration
Montero Mining and Exploration Ltd. Is a mineral exploration and development company engaged in the identification, acquisition, evaluation and exploration of mineral properties primarily focused on rare earth elements (REE), phosphates and uranium in Tanzania, South Africa and Quebec, Canada, respectively.
Montero is focused on adding value for all shareholders through the acquisition and exploration on properties, which have the highest for future discoveries or development of existing mineral resources into mineable reserves. We remain focused on the development of our flagship Wigu Hill Rare Earth Element Project in Tanzania, which is a high-grade, undeveloped Light Rare Earth Element deposit. The Company's current focus is on further exploration drilling to add to our initial NI 43-101 Mineral Resource Estimate. With the rising prices of REEs and China's control over export quotas, it is becoming imperative that the rest of the world develops new rare earth resources to meet the increasing demand from "green" technology and high-tech applications.
Montero's growth strategy is to develop the Wigu Hill Rare Earth Element project and to bring this to account through eventual rare earth production and cash flow, while operating in an environmentally and socially responsible manner. We will continue to add value for all stakeholders through the development of our portfolio of properties. Montero trades on the TSX Venture Exchange under the symbol MON.
Signed. Dr. Tony Harwood - President and CEO
This News Release includes certain "forward-looking statements". These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management's expectations. Forward-looking statements include estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", or "plan". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to, among other things, results of exploration, project development, reclamation and capital costs of the Company's mineral properties, and the Company's financial condition and prospects, could differ materially from those currently anticipated in such statements for many reasons such as: changes in general economic conditions and conditions in the financial markets; changes in demand and prices for minerals; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological and operational difficulties encountered in connection with the activities of the Company; and other matters discussed in this news release. This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking statements. The Company does not undertake to update any forward-looking statement that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws.
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.