TORONTO, ONTARIO--(Marketwire - March 22, 2012) - Montero Mining and Exploration Ltd. (TSX VENTURE:MON) ("Montero") announces that it has engaged AltaCorp Capital Inc. to provide financial and strategic solutions targeting the sale of one or more of Montero's Phosphate projects namely: Duyker Eiland, Phillips Kraal and Lamberts Bay projects, in South Africa. Management and The Board of Directors of Montero have decided that it is in the best interests of the Company to sell the Phosphate assets in order to focus on the flagship Rare Earth Project Wigu Hill in Tanzania.
A positive Preliminary Economic Assessment ("PEA") has been completed on the sedimentary phosphate Dukyer Eiland Project (see news release dated 28/02/2012) located 30 kilometers north of the Saldanha Port in the Western Cape Province of South Africa. The PEA is based on an initial Inferred Mineral Resource of 32.8 million tonnes, grading at 7.15% P2O5, as previously reported following an independent resource estimate prepared by AMEC Earth & Environmental (UK) Limited. Preliminary metallurgical test work indicated that an acid-grade phosphate concentrate of 33% P2O5 to 35% P2O5 (72.1% BPL to 76.5% BPL) can be produced by flotation. (See News Release dated 14/12/2011).
Montero has engaged AltaCorp as its non-exclusive advisor with respect to potential transactions regarding the Phosco assets and agreed to pay AltaCorp a percentage of the transaction value if such transaction is completed by AltaCorp. Transactions are not limited to but include;
- a sale of one or more of the assets of the Company; either in one transaction or in a combination of transactions;
- a merger or other business combination;
- one or more joint venture transactions;
There can be no assurance that any agreement or transaction will occur, or if a transaction is undertaken, as to its terms or timing. Montero does not intend to make further announcements or disclose developments with respect to the transaction unless the evaluation has been completed and the Board has approved a definitive transaction and the Company has entered into a definitive agreement.
||Dr. Tony Harwood, President and CEO of Montero commented, "The potential sale of the phosphate assets will allow the Company to focus on our flagship Wigu Hill Rare Earth Project in Tanzania as we de-risk the project to demonstrate potential rare earth production in the near term. All proceeds from the proposed sale of the phosphate assets will be used to advance our rare earth strategy. We are confident that AltaCorp have the necessary experience and contacts to potentially realize a transaction."
About AltaCorp Capital Inc.
AltaCorp Capital Inc. is a Canadian based institutional financial advisory firm that offers a full spectrum of value-added financial and advisory services to corporations in varied stages of development, including Corporate Mergers & Acquisitions; Equity and Debt Financing; Asset Acquisitions & Divestitures; Institutional Sales & Trading; and Institutional Equity Research. AltaCorp is in a strategic relationship with ATB Financial (ATB), a full-service financial institution headquartered in Edmonton, Alberta. AltaCorp focuses on the key drivers of the Western Canadian economy and the overlapping subsectors of Energy, Agri-Industry, and Diversified Industries. AltaCorp Capital Inc. is a member of the Investment Industry Regulatory Organization of Canada and the Canadian Investor Protection Fund. For more information, visit www.altacorpcapital.com.
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 potential for future discoveries or development of existing mineral resources into mineable reserves. We remain engaged in 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 updating the initial NI 43-101 Mineral Resource Estimate and advancing the hydro-metallurgical testwork with Mintek. 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 through the development of our portfolio of properties. Montero trades on the TSX Venture Exchange under the symbol MON.
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.