NEW YORK, July 18, 2012 /PRNewswire/ -- TurkPower Corporation (OTC.BB: TRKP) (the "Company"), announced today that it has signed a Letter of Intent ("LOI") with Ouro do Brasil ("ODB") to merge with ODB's majority-owned subsidiary Zinco do Brasil Mineracao Ltda. ("ZBM"). The Company expects to announce the signing of the final and binding merger agreement ("Merger Agreement") no later than July 27, 2012, and to perfect the merger within 4 weeks of signing of the Merger Agreement.
The merger will be a 50/50 merger, in which TurkPower will acquire 100% of ZBM's outstanding shares and whereas TurkPower will be the surviving entity and will change its name after completion of the merger. The LOI sets forth that TurkPower's board of directors shall consist of seven members upon completion of the merger, five of whom shall be appointed by ODB. The members of the board of directors post-merger shall be: Ahmet Calik; James D. Davidson; Edward Dowling; Adriano Espeschit; Juvenil Felix; Ryan E. Hart; and Jose Mendo de Souza.
"This is a great step for TurkPower and its investors after challenging and straining 9 months with several setbacks and disappointments," commented Ryan E. Hart, Chairman of TurkPower. "The management and directors taking over TurkPower have a combined 200 years of mining and business experience, and have proven their expertise and talent in various successful private and public mining ventures, including companies such as Jaguar Mining, AngloGold, Meridian Gold as well as Alacer Gold (formerly Anatolia Minerals), which was built under the leadership of Mr. Calik, Mr. Davidson and Mr. Dowling."
About Ouro do Brasil
ODB is a privately owned company with vast business interests in the mining space, particularly in Brazil. ODB is fully owned by management, its board of directors and other mining professionals, including Ahmet Calik, Ed Dowling, Adam Fleming and Jose Mendo do Souza.
About TurkPower Corporation
TurkPower Corporation (OTCBB: TRKP) is an American junior mining company with mining interest in Russia as well as a minority interest in the Kuluncak mine, an iron ore mine in Turkey formerly owned by Exxaro. TurkPower is currently in the process of evaluating its options and defining its strategy regarding its asset in Russia and Turkey, which will include protecting its shareholders interest in said assets.
Certain statements in this news release are forward-looking statements. Words such as "expects", "intends", "plans", "proposes", "may", "could", "should", "anticipates", "estimates", "likely", "possible", "potential", "believes" and words of similar import may identify forward-looking statements. Such statements are based on management's and the Company's independent mining consultant's current expectations, estimates and projections about the companies' businesses, are not guarantees of future performance and involve certain risks and uncertainties that are difficult to predict. Actual results could vary materially from the description contained herein due to many factors beyond the control of either of the companies, including, but not limited to, the successful completion of the merger; the combined company's ability to raise the required additional capital to develop its mining assets and to identify other acquisition and/or joint venture opportunities in the mining sector, and to establish the technical and managerial infrastructure necessary to take advantage of, and successfully participate in, such opportunities; future economic conditions; demand for manganese and other minerals the company may seek to extract; political stability; and changes in governmental regulations, and financial capabilities of the Company. Additional information on risks and other factors that may affect the business and financial results of TurkPower and the combined company can be found in filings of TurkPower with the U.S. Securities and Exchange Commission. The Company encourages any current or potential shareholder to read all the public filings before making a decision to invest in the shares of any public company.
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SOURCE TurkPower Corporation