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Helio and Solomon Sign a Letter of Intent on the Damara Gold and Tin Project, Namibia
Helio Resource Corp. TSX-V Trading Symbol: HRC Toll Free: +1 888 955 4728 E-mail: info@...
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[{"type":"text","content":"\n\n\nHelio Resource Corp.\nTSX-V Trading Symbol: HRC\nToll Free: +1 888 955 4728\nE-mail: [email protected]\nWebsite: www.helioresource.com\n\n\nSolomon Resources\nTSX-V Trading Symbol: SRB\nToll Free: +1 888 860 2666\n\n\nVANCOUVER, March 27, 2014 /CNW/ - Helio Resource Corp. (TSXV: HRC),\n (\"Helio\" or the \"Company\") and Solomon Resources (TSXV: SRB) are\n pleased to report the companies have entered into a Letter of Intent,\n whereby Solomon can earn up to a 60% interest in Helio's Damara Gold\n and Tin Project (DGP) in Namibia.\n\n\nSubject to TSX Venture Exchange (the \"Exchange\") approval, the principal\n terms of the two-stage agreement are as follows:\n\n\nStage 1 (to earn a 51% interest)\n\n\n\n\nDate for Completion*\n\n\nShares Issued to \nHelio by Solomon\n\n\nMinimum \nExploration \nExpenditures \nto be \nIncurred\n\n\n\n\nOn Signing*\n\n\n2,500,000**\n\n\n \n\n\n\n\nBy end of Year 1\n\n\n2,500,000\n\n\n$300,000**\n\n\n\n\nBy end of Year 2\n\n\n5,000,000\n\n\n$500,000\n\n\n\n\nBy end of Year 3\n\n\n5,000,000\n\n\n$700,000\n\n\n\n\nTOTAL\n\n\n15,000,000\n\n\nC$1,500,000\n\n\n\n\n\n\n* Within 5 business days of TSX Venture Exchange approval\n\n\n\n\n** Minimum Commitment - Share Issuance and Exploration Expenditures\n\n\n\n\n\n\n\nHelio shall be the operator during the Stage 1 earn-in phase.\n\n\nStage 2 (to increase to a 60% interest)\n\n\nAfter successful completion of the Stage 1 earn-in requirements, Solomon\n has the option to increase its ownership in the DGP project from 51% to\n 60% by spending an additional $1.5M in Year 4, and issuing an\n additional 5,000,000 SRB shares to Helio.  Upon successful completion\n of Stage 2 the companies will form a 60:40 Joint Venture company in\n favour of Solomon.\n\n\nIf Solomon successfully completes Stage 1 of the earn-in but elects not\n to proceed to Stage 2 to earn a 60% interest in the DGP, the companies\n will form a 51:49 Joint Venture company in favour of Solomon.\n\n\nAbout the DGP Project\n\n\nThe DGP Project includes two Exclusive Prospecting Licences (EPLs)\n covering approximately 722km2, located in central Namibia, southern Africa.  The licences are located\n 20km east of the Navachab Gold Mine, which is in the process of being\n sold by AngloGoldAshanti to QKR, a private equity firm, for US$110M.\n\n\nThe most advanced targe...