|Tue Nov 29, 2011|
Sultan Minerals Signs Letter of Intent with Tunxsten Resources to Develop the Jersey Emerald Property, British Columbia
|November 29, 2011 Vancouver, BC - Sultan Minerals Inc. (SUL - TSX Venture) ("Sultan") is pleased to announce that it has signed a Letter of Intent ("LOI") with Tunxsten Resources Ltd. ("Tunxsten") granting Tunxsten the exclusive option to acquire up to an undivided 65% interest in and to the Jersey Emerald Property (the "Property") located near Salmo, British Columbia. The companies are confident that this partnership, combining Sultan's technical expertise with Tunxsten's international financial strengths will significantly accelerate the Jersey Emerald Project towards production.|
The 18,000 hectare Jersey Emerald Property is the largest mineral property in the famous Kootenay Arc silver-lead-zinc-tungsten belt. The property is host to 5 historic mines including BC's second and third largest zinc mines. The property was formerly Canada's second largest tungsten mine and currently has a measured and indicated NI43-101 resource of 2.72 million tonnes averaging 0.358% WO3 and an additional inferred resource of 2.32 million tonnes averaging 0.341% WO3 using a 0.15% cutoff. The property includes the Victory Tungsten Deposit which has a historical resource of 84,000 tons of 0.54% WO3. There is also a significant lead zinc resource (please see news release of March 1, 2010). The property has excellent infrastructure including $150 million in underground development, road access, power, water and a nearby skilled workforce.
Mr. Arthur G. Troup, President and CEO, said "I believe this strategic alliance represents a win-win both for our two companies and for Sultan's shareholders."
Under the terms of the LOI, Tunxsten shall have the exclusive right to acquire up to an undivided 65% interest in the Property by paying to Sultan $700,000 in accordance to an agreed upon schedule and by completing work programs totalling $8.5 million on the Property or completing a bankable feasibility study, all within a three year period. Upon earning its 65% interest, Sultan and Tunxsten (the "Parties") will form a Joint Venture by entering into a joint venture agreement for the further development of the Property by the Parties. Upon completion of a bankable feasibility study, Tunxsten will have the right to acquire an additional undivided 5% interest in and to the Property for a payment of $500,000 to Sultan increasing Tunxsten's interest to 70%. Tunxsten will also have the right to acquire a 65% (or 70% if Tunxsten exercises all its rights) in the 1,100 acres of land that Sultan owns over the Property upon the terms and conditions to be agreed to by the Parties. Tunxsten shall have 90 days from the date of the LOI to perform due diligence. The LOI is subject to regulatory approval.
Tunxsten Resources, Ltd., is a Canadian company based in Vancouver, BC. Tunxsten is a 100% owned affiliate of a Swiss based investment group, which specializes in worldwide base metal and resource investments.
For further information on Sultan's projects, visit www.sultanminerals.com.
Arthur G. Troup, P.Eng., Geological
President and CEO
For further information please contact:
Marc Lee, Investor and Corporate Communications
Tel: (604) 628-0519 Fax: (604) 628-0446
Email: email@example.com or firstname.lastname@example.org
This release was prepared by Sultan's management. Neither TSX Venture Exchange nor its Regulation Services Provider (as the term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release includes certain statements that may be deemed "forward-looking statements." All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that Sultan expects are forward-looking statements. Although Sultan believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements. For more information on Sultan, investors should review Sultan's filings that are available at www.sedar.com or Sultan's website at www.sultanminerals.com.
You can view the Next News Releases item: Tue Jan 3, 2012, Sultan Minerals Signs Kena Property Agreement with Altair Ventures Ltd.
You can view the Previous News Releases item: Mon Nov 7, 2011, Sultan Minerals Acquires 100% Interest In Historic Daylight Gold Mine, British Columbia
You can return to the main News Releases page, or press the Back button on your browser.