VANCOUVER, Oct. 21, 2013 /CNW Telbec/ - Solid Resources Ltd. ("Solid" or the "Company") (TSXV: SRW) (Frankfurt: YRS) is pleased to announce it has signed a definitive and exclusive Co-operation Agreement ("the Agreement") with a wholly owned subsidiary of Glencore Xstrata plc ("Glencore"), for joint due diligence of the Cehegin Project. The Agreement also provides for the potential formation of a joint venture company to progress development of the formerly producing Cehegin Iron Ore Mine located in the Province of Murcia, south-eastern Spain.
Under the terms of the Joint Venture Agreement ("the JVA"), Glencore would be granted a 20% interest in the Cehegin Project, with Solid retaining an 80% interest. The joint venture would progress exploration and phased development studies with the objective of identifying and constructing a new iron ore mine.
Greg Pendura, CEO of Solid Resources commented: "A strategic partnership with Glencore is a major step towards putting the Cehegin Project into production. Glencore gives Solid access to world renowned expertise in mining development, worldwide marketing and logistics. The strength of Glencore combined with the historical drilling and production data available on the Cehegin Iron Ore Mine will greatly facilitate the advancement of this project."
Significant terms of the potential JVA are:
- Glencore to hold a 20% interest, with Solid maintaining an 80% interest.
- Glencore to exclusively purchase all production.
- Agreement to jointly pursue third party financing when required.
- Dilution of non-financing partner(s) at fair market value.
In addition, upon execution of the Agreement, Solid has also issued to Glencore twelve million (12,000,000) purchase warrants to purchase an equivalent number of common shares in the capital of Solid, at an exercise price of $0.19 during the period from the date of issuance until October 18, 2014 and $0.26 during the period from October 19, 2014 until the expiry date of October 18, 2015. The warrants will only vest and be exercisable as to 50% on the signing of the Agreement and as to 50% on Glencore contributing its share of costs for the initial exploration and study phase of the development programme. The warrants, and any common shares issuable on exercise, are subject to a hold period that expires on February 18, 2014.
About Solid Resources
Solid Resources is a Canadian junior mining company focused in Spain on the exploration and development of rare and industrial metals. The Company is currently in the late stages of re-opening the Cehegin iron ore mine in south-eastern Spain and is applying for an exploitation permit on its Alberta-1 tantalum/tin and lithium property in north-western Spain.
About Glencore Xstrata plc
Glencore is one of the world's largest global diversified natural resource companies. As a leading integrated producer and marketer of commodities with a well-balanced portfolio of diverse industrial assets, they are strongly positioned to capture value at every stage of the supply chain, from sourcing materials deep underground to delivering products to an international customer base. The Group's industrial and marketing activities are supported by a global network of more than 90 offices located in over 50 countries. Their diversified operations comprise over 150 mining and metallurgical sites, offshore oil production assets, farms and agricultural facilities. They employ approximately 190,000 people, including contractors.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release
SOURCE Solid Resources Ltd.