Adit Resources Completes Private Placement and Signs Letter of Intent to Option Picacho Gold and Silver Property
February 02 2011 - 7:57AM
Marketwired
Tara Minerals Corp. (OTCBB: TARM) (BERLIN: 6T3) is pleased to
announce that its subsidiary, Adit Resources Corp., has closed an
equity financing for $500,000. The $500,000 investment into Adit is
through a private placement with Yamana Gold Inc. of 500,000 units
exchangeable for 500,000 common shares and 250,000 common share
purchase warrants, each exercisable for one common share for a term
of three years at an exercise price of $1.50 per share.
Adit has also signed a letter of intent with Yamana Gold Inc.
(the "Investor") that grants an option to acquire up to a 70%
interest in the Picacho gold/silver project. A definitive agreement
is expected to be completed within 45 days. Upon completion of the
definitive agreement, Adit anticipates receipt of an additional
investment of $2.5 million to be completed on the same terms. From
this initial total equity investment of $3 million, Adit will be
required to spend $2 million advancing exploration work on the
Picacho project. The definitive agreement will allow the Investor
the right to maintain or increase its pro rata Adit ownership
interest up to 19.9% by participating in any form of future equity
financing of Adit.
Terms of the agreement also allow the Investor to earn an
initial 51% by spending $5 million on the project within 30 months
of the execution of the definitive agreement. In addition to these
expenditures, Adit will receive payments totaling $1 million as
expenditure milestones are achieved. Upon earning 51%, the title
and rights to Picacho will be transferred into a joint venture
owned 51% by the Investor and 49% by Adit.
The Investor will then have the option to increase its interest
to 70% by spending an additional $9 million within 66 months of the
execution of the definitive agreement. In addition to these
expenditures, Adit will receive payments totaling $2 million as
expenditure milestones are achieved. Upon the Investor earning 70%,
Adit has the right to request funding for 100% of Adit's
shareholder commitments, in the form of a carried funding loan
advance, to the joint venture in connection with the completion of
a feasibility study.
Work to date on Picacho has identified nine gold-bearing veins
over four mineralized target areas with an aggregate strike length
of over 10.8 km. Drilling of approximately 5,300 meters has been
completed along only 600 meters of the vein system, with true width
intercepts including 11.3 m of 15.6 g/t gold, 6.1 m of 4.7 g/t
gold, and 9.4 m of 7.8 g/t gold.
The Picacho project area consists of 7,060 ha and is located in
Sonora, Mexico, 100 km south of the U.S.A border. The area has a
high level of exploration activity, is close to a national paved
highway, power grid, and a 1,200 m airstrip.
Robert Wheatley, President of Adit, commented, "We are honored
to have a proven explorer and operator invest in the potential
shown by Picacho. I would like to thank our geologists and local
technicians for their efforts in advancing the project as well as
our shareholders for their patience and their faith in the
project."
"We are pleased with Adit's new opportunity and continue to
focus on the advancement of Tara Minerals' tremendous property
portfolio," said Mr. Francis Biscan Jr., President of Tara
Minerals.
About Tara Minerals Corp. (http://www.TaraMinerals.com)
Tara Minerals Corp. is progressing towards advancing development
of its Don Roman mine and mill, located in Choix, Mexico.
Management is focused on creating long-term shareholder value and
deploying its capital to advance its projects by enhancing
resources, further outlining new discoveries/targets, and acquiring
additional strategic assets. Tara's strength in recognizing value
early and strategy of reducing risk through a foundation of cash
flow, positions it for low-risk value creation. Tara Gold Resources
Corp. (PINKSHEETS: TRGD) (FRANKFURT: T8N) owns 40,898,190 shares of
Tara Minerals.
About Adit Resources Corp. (http://www.AditResources.com)
Adit Resources Corp. is a growth-oriented precious metals
exploration and development company with an objective to become a
significant precious metals producer by exploring, developing, and
reinitiating production at the Picacho project in Mexico and other
North American exploration/advanced-stage projects.
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995: The statements contained herein which are not
historical are forward-looking statements that are subject to risks
and uncertainties that could cause actual results to differ
materially from those expressed in the forward-looking statements,
including, but not limited to, certain delays beyond the company's
control with respect to market acceptance of new technologies or
products, delays in testing and evaluation of products, and other
risks detailed from time to time in the Company's filings with the
Securities and Exchange Commission.
IR Contact: David Barefoot US (888) 901-4550