TORONTO, April 4 /CNW/ - Odyssey Resources Limited (TSX-V: ODX) ("Odyssey" or the "Company") announced today that it has entered into a letter of agreement relating to the sale of certain exploration licenses ("Licenses") in Turkey owned by Odyssey's subsidiary, Pusula Madencilik ("Pusula"), collectively known as the Tavsan Project, to a subsidiary of Ariana Resources plc ("Ariana", AAU-AIM). Completion of the transaction is subject to (i) the requisite Turkish regulatory authorities recording the Ariana subsidiary as the registered owner of a 100% interest in the Licenses; (ii) termination of an option agreement between Pusula and Teck Cominco Arama ve Madencilik Sanayi Ticaret A.S., a subsidiary of Teck Cominco Limited; (iii) the receipt by Ariana of requisite regulatory approval; and (iv) TSX Venture Exchange approval.
As consideration for the transfer of the Licenses, Ariana has agreed to pay Odyssey: (a) a non-refundable deposit of US$250,000 in cash on signature of the letter agreement; and (b) an additional US$250,000 in cash, and the equivalent of GBP 150,000 in common shares in the capital of Ariana (the "Shares") at an issue price of 5 British pence per Share. The cash and Shares relating to these latter payments will be held in escrow until the transfers of the Licenses are accepted by the Turkish General Director of Mining Affairs. The Shares will be subject to a 12 month hold period which will run from the date on which TSX Venture Exchange approval is received for the transaction.
About Odyssey Resources
Odyssey Resources Limited is a Canadian-based junior exploration company whose main focus has been in Morocco. Odyssey Resources Limited's 86.8 million shares trade on the TSX Venture Exchange under the symbol "ODX". Odyssey has called a Special Meeting of shareholders for April 25, 2008 to approve proposals to consolidate the common shares of the Company on a ten-for-one basis and to continue the Company under the Business Corporations Act (Ontario).
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this news release.
Forward-Looking Information
This press release contains forward-looking information that may involve a number of risks and uncertainties. You can usually identify this information by such words as "plan" or "expect", or other similar wording suggesting future outcomes or statements about an outlook. Inherent in the forward-looking statements are known and unknown risks, uncertainties and other factors well beyond the Odyssey's ability to control or predict. Actual results and developments may differ materially from those contemplated by these statements depending on, among others, such key factors as the ability to obtain necessary approvals for the transaction, the market for minerals, market and business conditions, fluctuations in interest rates and foreign currency exchange rates, changes in environmental and other regulations and changes in political risk. There is no assurance that the transfers relating to the Tavsan property will be completed. The forward-looking statements included in this release represent Odyssey's views as of the date of this release. While Odyssey anticipates that subsequent events and developments may cause Odyssey's views to change, Odyssey specifically disclaims any obligation to update these forward-looking statements. These forward-looking statements should not be relied upon as representing Odyssey's views as of any date subsequent to the date of this release.