Business
Cliffmont announces closing of San Luis Property acquisition and completion of private placement
VANCOUVER, Feb. 28, 2012 /CNW/ - Cliffmont Resources Ltd. (TSXV: CMO) (the "Company") is ...
About this update from Cliffmont Resources Ltd.
[{"type":"text","content":"\n\n\n\n\n\nVANCOUVER, Feb. 28, 2012 /CNW/ - Cliffmont Resources Ltd. (TSXV: CMO) (the \"Company\") is pleased to announce that it has closed its\n acquisition (the \"Acquisition\") of all of the issued and outstanding\n shares of Tarana Resources S.A. (\"Tarana\"). Tarana is the indirect\n owner of a mineral exploration license which covers 2,623 hectares (the\n \"San Luis Property\"), located in Palermo, Huila in Colombia.\n\n\n\"We are very pleased to have closed the acquisition of the San Luis gold\n project in Colombia and look forward to starting an aggressive\n exploration program and continuing to work with the local communities.\n The company will focus on exploration and evaluating the potential of\n multiple targets in this historical mining district,\" stated Jeff\n Tindale, President and CEO.\n\n\nAs consideration for the acquisition of all of the outstanding shares of\n Tarana, the Company has issued an aggregate of 10,000,000 common shares\n (the \"Payment Shares\") of the Company to the vendors, who are all at\n arm's length to the Company.  In addition, the Company has agreed to\n make cash payments to the vendors of an aggregate of $2,000,000 over a\n period of two years, of which $600,000 has been paid, and incur\n expenditures of an aggregate of $2,000,000 on the San Luis Property\n also over a two year period.  In addition, The Company has also agreed\n to issue to the vendors one additional common share for each one ounce\n of gold or gold equivalent (using a historical three year average of\n applicable metal prices) which is identified as proven or probable\n mineral reserves (as such terms are defined in National Instrument\n 43-101 (\"NI 43-101\")) on the San Luis Property in a NI 43-101 compliant\n technical report, subject to the issuance of a maximum of 10,000,000\n common shares of the Company.  All of the Payment Shares are subject to\n a Tier 2 Value Security Escrow Agreement and an aggregate of 605,934\n common shares which are beneficially owned or controlled by directors\n and officers of the Company are subject to a Tier 1 Value Security\n Escrow Agreement.\n\n\nPursuant to a finder's fee agreement, the Company has also issued an\n aggregate of 500,000 common shares (the \"Finder's Shares\") of the\n Company to an arm's length third party, as a finder's fee in connection\n with ...