Tao Minerals Ltd. - News Release
February 02 2006 - 9:30AM
PR Newswire (US)
THUNDER BAY, ON, Feb. 2 /PRNewswire-FirstCall/ -- Tao Minerals Ltd.
(the "Company"), (OTCBB: TAOM) today wishes to announce that,
further to the news release disseminated on January 19, 2005, it
has executed a Letter of Intent with Primecap Resources Inc., of
Las Vegas, Nevada, (Primecap) and Nueva California S. A., of
Medellin, Colombia, (Nueva California) (the parties to the letter
of intent) concerning the acquisition of 100% interest in the
Risaldo La Golondrina D14-082 mineral property located in Narino,
Colombia (the "Property"). Primecap has been granted 100% interest
in the Property, from Nueva California, pursuant to the terms and
conditions of an option agreement dated August 24, 2004. Primecap
agrees to assign, to the Company, its interest in the Property
pursuant to the execution of a formal agreement between the
parties, to be completed prior to March 15, 2006, for the following
consideration: a. Payment of CDN$150,000, payable on or before
March 15, 2006 and upon execution of the formal agreement between
the parties and b. The issuance of 2,500,000 common shares in the
capital stock of the Company, subject to applicable trading
restrictions, to Nueva California which will be issued either
contemporaneous with the payment of CDN$150,000 or within 14 days
of the execution of a Definitive Agreement, whichever is the
earlier. The letter of intent provides the framework within which
the parties can undertake the due diligence necessary to complete
the transaction and allows the Company the necessary time to secure
the required funding to meet its financial conditions. About the
Golondrina Gold-Silver Project
---------------------------------------- The Golondrina Gold-Silver
Project is located in the Municipality of Los Andes Sotomayor,
Department of Narino, in the southwest part of the state of
Colombia, South America. The property is underlain by Dagua Group
fine-grained layered quartzites (siliceous clastic sediments) of
Cretaceous age. These contain minor basalt flows and diabase dikes
of the same age. Intruded into these sediments is a small (2 km X
0.5 km) biotite-hornblende tonalite body of Tertiary age. It is
associated with the larger Vergel Stock, which is found 7
kilometres to the NW. The intrusion has a 100 m wide hornfelsed
contact aureole against the sediments. Mineralization on the
Golondrina Project is confined to milky white quartz veins which
contain disseminated sulpides. These sulphides include pyrite,
chalcopyrite (copper) and galena (lead). Vein widths range between
5 and 50 cm. Historically individual veins have been mined for
their high-grade precious metals, which have ranged up to 100
g/tonne gold. This has been done by selecting small amounts of
probable gold enrichment. In view of the contemplated closing of
the formal agreement to purchase 100% interest in the Property, and
in view of the additional time required to overview the Company's
mineral exploration activities, today the Company also wishes to
announce the appointment, of Mr. Jim Sikora, to its board of
directors. As a board member, Mr. Sikora's full time duties will be
the management and supervision of the mineral exploration and
development programs to be carried out on the company's mineral
claims. Mr. Sikora is also a director, officer and principal
shareholder of Nueva California and Primecap, both parties to the
letter of intent referred to in this news release. Over a four-year
career, Mr. Sikora supervised drill floor operations on locations
throughout Canada and the United States in the high Arctic and
offshore Newfoundland and Nova Scotia. Mr. Sikora completed
offshore safety, offshore survival and oilfield firefighting
courses. Mr. Sikora became Hydril Canadian tubular sales and
service manager from 1985 to 1987 and completed an extensive
in-house sales and management training program at Hydril Technology
Center Houston. In 1987, upon completion of the Canadian securities
course Mr. Sikora joined the equities brokerage business with
McNeil Mantha. Mr. Sikora joined Nesbitt Thompson's Edmonton office
shortly thereafter, and over the following three years Mr. Sikora
became a licensed commodities broker and options broker in addition
to providing equities trading for his client base. In 1990, Mr.
Sikora left the brokerage industry to pursue a career in public
company finance and consulting. Over 15 years, Mr. Sikora has
worked with numerous public companies, providing financing from US,
Canadian and European sources in addition to guiding management
decision-making on mining projects all over the world. In 2004 Mr.
Sikora became president of Primecap Resources Inc. a private
company seeking exploration projects in Colombia. Regrettably, the
Company advises that it has accepted the resignation of Mr. James
Plexman from his position of director and officer. His decision to
resign was for personal reasons and age consideration. About Tao
Minerals Ltd. ----------------------- Tao Minerals Ltd. was
recently listed for trading on the OTC BB and its primary
objectives are to be active in the mineral exploration industry. In
order to increase shareholders' equity value the Company plans to
identify, acquire and explore additional mineral properties of
merit with a view to eventually discovering mineral deposits
economically feasible for exploitation. Safe harbor for
Forward-Looking Statements: Except for statements of historical
fact, the information presented herein constitutes forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Such forward-looking statements involve known
and unknown risks, uncertainties and other factors which may cause
the actual results, performance or achievements of the company to
be materially different from any future results, performance or
achievements expressed or implied by such forward-looking
statements. Such factors include general economic and business
conditions, the ability to acquire and develop specific projects,
the ability to fund operations and changes in consumer and business
consumption habits and other factors over which Tao Minerals Ltd.
has little or no control. ON BEHALF OF THE BOARD Don Axent
(President) Contact: Telephone: (807) 344 2644 Facsimile: (807) 344
2412 DATASOURCE: Tao Minerals Ltd. CONTACT: Telephone: (807)
344-2644, Facsimile: (807) 344-2412
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