Saccharum Energy Corp. Amends Letter of Intent in Respect of Argentine K-2 Potash Property; Agrees to Terms for Joint Venture on K-3 and K-4 Properties

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[{"type":"text","content":"\nSaccharum Energy Corp. Amends Letter of Intent in Respect of Argentine K-2 Potash Property; Agrees to Terms for Joint Venture on K-3 and K-4 Properties\n\n Apr. 5, 2011 (Filing Services Canada) -- Saccharum Energy Corp. (SHM - TSX Venture), (\"Saccharum\" or \"the Corporation\") announced today that the Letter of Intent with Marifil Mines Ltd. (MFM: TSX-V) (\"Marifil\")  and Marifil's Argentine subsidiary Oxbow Holdings Corp. (\"Oxbow\") dated December 15, 2010 has been amended by agreement of the parties.  The Letter of Intent originally outlined the terms for the purchase by Saccharum of an interest in and the undertaking of an exploration program on the K-2 Potash property in Neuquen Province, Argentina. This amended agreement now includes terms of a proposed joint venture between Marifil and Saccharum whereby Saccharum can earn up to a 70% interest in Marifil's additional K-3 and K-4 potash properties.Saccharum has agreed to pay $50,000 for an exclusive 30 day extension of the due diligence period to check title and arrange financing.  If Sacchaarum elects to proceed, then $25,000 of this payment shall apply to purchase of the Oxbow shares as described below.  Under the revised K-2 agreement, Saccharum  has agreed to purchase all of the shares of Oxbow for a total price of US$366,481.  The Corporation has further agreed that Oxbow shareholders can accept either cash or Saccharum shares at a deemed price of C$0.50 per Saccharum share.  Marifil then agrees to restructure its underlying agreement with Oxbow whereby Saccharum can earn up to a 70% interest in the K-2 property.  Marifil shall retain a 1.5% Net Smelter Royalty.  The Corporation shall have the right to purchase Marifil's royalty for US$15,000,000.  In addition, Marifil has agreed that Saccharum can acquire up to a 70% interest in its K-3, and K-4 properties also located in the Neuquin Basin in Argentina.   Saccharum will pay Marifil US$500,000 in cash plus 2,000,000 Saccharum common shares over three years for each of the three properties for a total payment to Marifil of $1,500,000 and 6,000,000 shares.  The first year's payment to Marifil will be US$450,000 in cash and 3, 000,000 shares upon Saccharum's completion of financing.Saccharum will sp...

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