Vancouver, B.C. – March 4, 2013: San Marco Resources Inc. (SMN: TSX-V) has granted two options to Exeter Resource Corporation (TSX: XRC; NYSE-MKT: XRA; Frankfurt: EXB) to acquire interests in each of the Company’s La Buena and Angeles properties in Mexico. Should Exeter earn fully into each option, total exploration funding by Exeter would be $15M for La Buena and $20M for Angeles, including $2.4M of committed expenditures and $250,000 cash payments primarily during 2013. All expenditures and cash payments can be accelerated at any time at Exeter’s election. Details of the business arrangements are as follows:
LA BUENA
$15M of exploration funding and $650,000 in cash payments over 5 years to earn 60% interest:
- $1.4M of exploration funding, plus $150,000 cash payment are firm commitments by March 1, 2014. Year 1 exploration must include 2,500 meters of drilling;
- By March 1, 2015 additional $1.6M in expenditures plus $150,000 cash payment;
- By March 1, 2016 additional $2.7M in expenditures plus $100,000 cash payment;
- By March 1, 2017 additional $3.5 in expenditures plus $100,000 cash payment;
- By March 1, 2018 additional $5.8M in expenditures plus $150,000 cash payment;
- 60% earn-in must include a preliminary economic assessment as defined by NI43-101 standards;
- San Marco to operate until $6M of exploration expenditures completed;
- All cash payments to be by way of private placement purchase by Exeter of San Marco’s common shares at a 25% premium to the market price at the time the payment is due.
ANGELES
$10M of exploration funding and $500,000 in cash payments over 4 years to earn 51%, and an additional $10M of exploration expenditures and $450,000 in cash payments over the following 3 years to earn an additional 19% for a total 70% interest:
- $1M of exploration funding and $100,000 cash payment are firm commitments by December 31, 2013. Year 1 exploration includes 2,500 meters of drilling;
- By December 31, 2014 additional $1.5M in expenditures plus $100,000 cash payment;
- By December 31, 2015 additional $3M in expenditures plus $150,000 cash payment;
- By December 31, 2016 additional $4.5M in expenditures plus $150,000 cash payment;
- From January 1, 2017 to March 31, 2020, additional $10M in exploration expenditures plus $450,000 cash payments;
- 70% earn-in must include a preliminary economic assessment or preliminary feasibility study as defined by NI43-101 standards.
- San Marco to operate until the 51% earn-in;
- All cash payments to be by way of private placement purchase by Exeter of San Marco’s common shares at a 25% premium to the market price at the time the payment is due.
The Company’s CEO, Bob Willis stated “The partnerships announced today with Exeter, will not only solidify exploration funds for Angeles and La Buena, but allow San Marco’s exploration team to continue pursuit of additional high quality properties in Mexico. With Exeter’s proven track record of exploration, discovery and development success, we look forward to our teams working closely together, with a focus on discovery opportunities at La Buena and Angeles.”
Co-Chairman of Exeter Resource Corp, Bryce Roxburgh states “Our exploration team has spent 10 months reviewing mineral opportunities in jurisdictions where both the investment climate and the geological prospectivity are favourable. The Angeles and La Buena projects met both criteria and we are excited to work with San Marco to test these exploration properties.”
Preparation for drilling at Angeles is currently underway with start-up expected in March. Exploration work continues at La Buena, in preparation for a major I.P. program which will be conducted over the pediment, south, east and west of the primary “Julia Zone” drill target. Upon completion and analysis of the results, the 2013 drill program will commence.
CORPORATE UPDATE
We will be holding a conference call today at 10:00 am PDT/1:00 pm EDT with San Marco’s CEO Bob Willis and Chair Tookie Angus for a Corporate update and take any questions you may have. Details of this call are as follows:
- Dial-in numbers: 1-877-385-4099 (Toll Free) or 604-899-2339 in Vancouver
- Access Code: 318 2890 #
- *6 will mute/un-mute your line
For further information, contact:
Rick Peterson
V.P. Corporate Development
604-568-5951
604-868-3164
rick@rickpeterson.ca
Robert D. Willis
CEO
604-568-5951
604-813-2606
rwillis@sanmarcocorp.com
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
