/NOT FOR DISSEMINATION IN THE U.S. OR THROUGH U.S.
NEWSWIRES/
Trading Symbol: FTR-TSX: V
VANCOUVER,
May 14, 2013 /CNW/ - Firesteel
Resources Ltd. ("Firesteel" or the "Company")
(TSX-V: FTR) announces that it has entered into a term sheet dated
May 8, 2013 for an option and joint
venture agreement (collectively, the "Transaction")
with OZ Exploration Pty Ltd. ("OZ"), a subsidiary of OZ
Minerals Limited (OZE:ASX) of Australia. The term sheet provides OZ
the right to acquire up to a 70% interest in the ROK Coyote
property (the "Property") located in northwestern
British Columbia. It is intended
that the term sheet will be superseded by a definitive agreement
(the "Definitive Agreement") to be entered into between OZ
and Firesteel.
Firesteel and OZ anticipate completing the
Definitive Agreement by July
2013. The Transaction is subject to due diligence and
regulatory approval.
Upon completion of the Transaction, OZ expects
to be actively engaged in the exploration of the Property.
Michael Hepworth,
Interim President and CEO of Firesteel stated, "The ROK Coyote
property is right in the heart of the recent activity between
Colorado Resources Ltd.'s North ROK property and the Red Chris
property of Imperial Metals Corporation. We have eight on trend
targets on the property and believe the best opportunity to reward
shareholders is by partnering with a major mining company such as
OZ Minerals. OZ Minerals has the funding, experience and expertise
to make ROK Coyote a viable project."
Transaction Terms
Under the terms of the Transaction, OZ has an
option (the "Option") to earn up to a 70% interest in the
Property which may be exercised by:
- Making cash payments to Firesteel totalling US $500,000 over 43 months;
- Incurring exploration expenditures (the "Expenditures")
totalling US $8,000,000 over 43
months.
- After completion of the Expenditures, if OZ wishes to continue
exploration, it must pay Firesteel an additional US $1,000,000. In the event that OZ
continues exploration, Firesteel will have a once only election to
agree to fund its 30% share of expenditures on a go forward basis
through to completion of final construction and commissioning of a
mine. If Firesteel decides not exercise its once only election to
finance its share of the investment, OZ can acquire a further 10%
interest in the Property by spending US $5,000,000 on exploration.
OZ will be appointed as the operator of the
Property and will have the exclusive and sole responsibility of
administering and carrying out the exploration programs on the
Property.
OZ Minerals Limited
OZ Minerals Limited is an Australian based
mining company with a focus on copper. The company owns and
operates the high quality Prominent Hill copper-gold mine in
South Australia and is working to
maximise the asset through organic growth. The company also owns
the Carrapateena copper project in South
Australia which is one of Australia's largest undeveloped copper
deposits, currently at an advanced exploration stage.
OZ Minerals is also looking to pursue other
projects which deliver attractive returns for shareholders through
acquisition, organic development and or exploration. OZ Minerals
has a strong balance sheet, a team of highly skilled mining
industry professionals and a commitment to respect, integrity,
action and results.
ON BEHALF OF THE BOARD OF DIRECTORS OF
FIRESTEEL RESOURCES INC.
"Michael
Hepworth"
________________
Michael Hepworth,
Interim President and CEO
Neither TSX Venture Exchange nor its
Regulation Services accepts responsibility for the adequacy or
accuracy of this release.
Advisory Regarding Forward Looking
Statements
This news release contains forward-looking
statements. Users of forward-looking statements are cautioned
that actual results may vary from forward-looking statements
contained herein. Forward-looking statements include, but are not
limited to: expectations, opinions, forecasts, projections and
other similar statements concerning anticipated future events,
conditions or results that are not historical facts. In certain
cases, forward-looking statements can be identified by the use of
words such as "plans", "expects" or "does not expect", "is
expected", "budget", "scheduled", "estimates", "forecasts",
"intends", "anticipates" or "does not anticipate", or "believes",
or variations of such words and phrases or statements that certain
actions, events or results "may", "could", "would", "might" or
"will be taken", "occur" or "be achieved". While the Company has
based these forward-looking statements on its expectations about
future events as at the date those statements were prepared, the
statements are not a guarantee of the Company's future performance.
Firesteel's potential deposits and mineralization and promising
potential on its ROK Coyote property and its launch of the
Transaction as disclosed in this news release (together, the
"Significant Matters") and all outcomes are subject to
risks, uncertainties, assumptions and other factors which could
cause actual results, performance or achievements to differ
materially from future results, performance or achievements
expressed or implied by such forward-looking statements.
Although the Company believes that the expectations reflected for
the Significant Matters in such forward-looking statements are
reasonable, it cannot give any assurance that such expectations
will prove to be correct.
The Company's forward-looking statements are
expressly qualified in their entirety by this cautionary statement
and are made as of the date of this new release. Unless
otherwise required by applicable securities laws, the Company does
not intend nor does it undertake any obligation to update or review
any forward-looking statements for the Significant Matters to
reflect subsequent information, events, results or circumstances or
otherwise.
SOURCE Firesteel Resources Inc.