VANCOUVER, April 18 /PRNewswire/ - NAINA CAPITAL CORP. (the "Company") is pleased to announce the results of the annual general meeting of shareholders that was held on April 15, 2011.
At the meeting, shareholders elected as directors Messrs. Wally Boguski, Laurence Sookochoff, Paul Lee and Alphonse Ruggiero. Mr. Navin Varshney did not stand for re-election but will remain with the company in the capacity of a corporate consultant. The Company thanks Mr. Varshney for his past service and wishes him well in his future endeavours.
Mr. Boguski was reappointed by the board as Chief Executive Officer and President, and Mr. Ruggiero was reappointed as the Chief Financial Officer and Secretary. The Company's Audit Committee consists of Messrs. Sookochoff, Ruggiero and Lee. The Company's 10% rolling stock option plan was also approved by shareholders.
Shareholder Approval of El Creston Agreement
As previously announced, the Company has entered into an agreement (the "El Creston Agreement") with Minera Copper Canyon de Mexico S.A. de C.V. (the "Owner"), an arm's-length party, to acquire a 50% interest in the iron ore minerals located within a highly prospective iron ore property (the "El Creston Property") located in Sinaloa, Mexico. Subsequent to the announcement, the Company renegotiated some of the terms of the El Creston Agreement resulting in a significant reduction in the number of shares potentially issuable to the Owner pursuant to this transaction.
The share issuance requirement was lowered from 12,000,000 shares to 8,300,000 shares, issuable in the following tranches: i) 800,000 five days after TSXV approval of the El Creston Agreement; ii) 500,000 shares six months after TSXV approval; iii) 500,000 shares 12 months after TSXV approval; iv) 1,000,000 shares 24 months after TSXV approval; and v) 5,500,000 shares on or before the earlier of the presentation of a positive feasibility study and the commencement of commercial iron-ore production on the El Creston Property, either event to occur no later that 24-months after TSXV approval.
The Company is pleased with the noted amendments which will considerably lower the overall cost of this transaction.
In the event that the option under the El Creston Agreement is exercised, it is a possibility that the Owner could become a greater than 20% shareholder of the Company. Accordingly, at the meeting shareholders unanimously approved a resolution authorizing such a change of control.
The acquisition remains subject to the approval of the TSXV.
El Creston Property Highlights
The El Creston Property is an iron prospect comprising some 500.5 hectares which is located northwest of the city of Choix in Sinaloa State, Mexico. The property is divided into two concessions: i) 2DA. AMP. STO. TOMAS DEDUC. 1 DIV. 2 (129.8 HA); ii) AMP. SANTO TOMAS RED. 2 DIV. B (370.7 HA). The El Creston Property is in an early stage of development and the mineralization is primarily comprised of carbonate and clastic rocks at the contact with granodiorite accompanied by magnetite replacement deposits. Other minerals present are specularite, hematite, quartz and minor pyrites and chalcopyrite. Preliminary channel sampling of the magnetite deposits has returned values ranging up to 71.4% Fe out of 34 samples. A second batch of samples returned the equivalent of 64.15% Fe out of 69 samples. At least 12 magnetite bodies have been located and uncovered to date using a mechanical excavator and bulldozer on site. A magnetometer survey over the southern half of the property indicates the potential for more magnetite bodies to be discovered, either on the surface or close to the surface. It has been concluded by the Company's geological staff that the El Creston Property has geological merit and warrants further work.
The Company will file a NI 43-101 compliant technical report shortly on SEDAR.com as part of the regulatory approval process.
The Exploration Plan
Due to the relatively short option period contained in the El Creston Agreement, subject to shareholder and regulatory approval, the Company intends to aggressively explore the El Creston Property in an approximately $500,000 initial work program which will include:
|i) mapping of each magnetite lens or pod individually on a scale of not less that 1:500 showing the structure of the pod and sample cut locations;|
|ii) prospecting and field checks of magnetic anomalies, employing the dip needle, particularly in places not yet accessible to mechanical equipment - followed-up by pick and shovel hand trenching;|
|iii) field check of the contact between granodiorite and the limestone and metasediments to conform to the magnetic anomaly map;|
|iv) continuation of outcrop exposure employing the on-site bulldozer and excavator; and|
|v) surface diamond drilling of a minimum of 3,500 metres of a minimum NQ size core. The drilling program would last a maximum of three months.|
The Company expects that this work program will be undertaken immediately with completion in less than 6-months. In so doing, management will be in a position to determine whether the El Creston Property is of sufficient merit to warrant maintaining the option and justifying the consequent cash payments and share issuances.
Upon regulatory approval of the transaction, the Company intends to change its name to 'Sierra Iron Ore Corporation'.
Ruben Verzosa, P. Eng, a Qualified Person as defined by National Instrument 43-101, is responsible for the technical information contained in this News Release.
On behalf of the Board of Directors of Naina captal corporation
Wally Boguski, President/CEO
This news release contains certain forward looking statements which involve known and unknown risks, delays, and uncertainties not under the control of Naina Capital Corp. which may cause actual results, performance or achievements of Naina Capital Corporation to be materially different from the results, performance or expectation implied by these forward looking statements. Such uncertainties include the completion of the acquisition of the El Creston property and the ability of Naina to finance its participation and earn a resulting interest in the El Creston property.
Neither 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 press release, which has been prepared by management.
SOURCE Naina Capital Corp.