Terreno Resources Corp. to Acquire Brazilian Potash, Phosphate and Bauxite Projects
20 Avril 2011 - 2:00PM
Marketwired
Terreno Resources Corp. (TSX VENTURE: TNO) ("Terreno" or the
"Company") is pleased to announce that it has agreed to acquire,
from a private vendor, 100% of the Jatuarana Phosphate Project, the
Nova Olinda Potash Project and the Manaus Bauxite Project, all
located in Amazonas State, Brazil. The transaction is subject to
certain due diligence conditions and to approval by the TSX Venture
Exchange.
Jatuarana Phosphate Project
The project consists of 18 tenements covering 1770 km2 of the
Jatuarana Sedimentary Basin in Amazonas State, north-western
Brazil. The project is transected by the Trans-Amazon Hwy and lies
30 km to the west of the main agricultural centre in the Amazon
State and 220 km to the north of the Mato Grosso soy belt region.
Phosphate occurrences were first discovered on the project by the
Geological Survey of Brazil in the 1980s. Rock chip sampling at the
time returned grades of 7% to 9.3% P2O5 over a widespread area.
Analysis suggests that surface weathering could have depleted the
P2O5 grades reported by as much 50%. In certain areas, the
phosphate mineralization is inter-bedded with Glauconite rich rock
which contains soluble potassium. The sedimentary rock hosting the
mineralization is flat lying, exposed at surface and has been
identified over a significant area.
Nova Olinda Potash Project
The project consists of 5 tenement applications in the Amazon
potash basin. The tenements are located to the west of the
Fazendinha and Arari sylvinite deposits which are owned by
Petrobras and contain reserves of in excess of 1 billion tonnes at
a grade of 18.5% K2O. The Amazon potash basin is considered to be
an analog to the Saskatchewan potash basin based on similar
geology, origin and size. Estimates suggest the basin could contain
on the order of 30 billion tonnes of K2O.
Manaus Bauxite Project
The project consists of two tenements north of the Amazon River
and floodplain. The bauxite formation has been identified in 12
plateaus on the project covering 34 km2. The project is located to
the west of the Porto Trombetas (MRN) mine, the largest bauxite
mine in Brazil producing over 17 million tonnes in 2010.
"We are very excited to acquire this portfolio of projects in
Brazil. Each project has been targeted for its prospective geology
and for commodities with attractive fundamentals globally and
within Brazil specifically," commented Philip Williams President
and CEO. "We look forward to completing our due diligence
expeditiously so we can begin work programs on each project this
summer. The Jatuarana Phosphate project is drill ready and we see
potential to generate an initial resource in a short time frame. At
the Nova Olinda Potash project our focus will be on interpreting
existing data and commissioning additional geophysical programs to
identify drill targets while at the Manaus Bauxite project we
intend to undertake a surface sampling program this summer to
assess the grade and thickness of the target horizon."
Terreno will pay the vendor an initial US$100,000 option fee
which provides for a 90 day period to complete certain due
diligence. Once the option is exercised, Terreno will have 30 days
to settle the transaction at which point it will make a US$300,000
payment followed by two separate US$250,000 payments on the 6 month
and 12 month anniversaries of the settlement date. A further
US$100,000 is payable to the vendor 14 days following the grant of
the last tenements comprising the Nova Olinda Potash Project. On
settlement Terreno will also issue to the vendor 7,500,000 shares
subject to a minimum 1 year escrow and conditions of regulatory
approvals. A further 1,500,000 shares will be issued to the vendor
14 days following the grant of the last tenements comprising the
Nova Olinda Potash Project also subject to a minimum 1 year escrow
and conditions of regulatory approvals.
The vendor is also entitled to additional cash payments based on
the follow project milestones:
-- US$250,000 within 14 days of the completion of a maiden resource on each
project.
-- US$2,000,000 within 14 days of the completion of a preliminary economic
assessment on each project.
-- US$3,000,000 within 14 days of the date that commercial production
commences on each project.
Further, the vendor will retain a 2.0% NSR on each project of
which 1% can be purchased by the company for US$2,500,000 after
which the company would retain a right of first refusal on the
remaining 1%.
The Qualified Person for Terreno's projects is Mr. Peter
Mullens, who is a member of the Australian Institute of Mining and
Metallurgy. Mr. Mullens has reviewed and approved the technical
content of this release.
About Terreno Resources
Terreno, meaning "of the earth" in Spanish, represents the
Company's focus on natural resource opportunity development in
South America. Terreno has option agreements on three exploration
projects in Argentina; La Poposa (formerly referred to as Amarillo)
in San Juan, Socompa and Trigal in Salta. All three projects boast
significant alteration systems and have the potential for copper,
gold and silver mineralization. For more information, please visit
www.terrenoresources.com.
To view Figure 1, please visit the following link:
http://media3.marketwire.com/docs/PNP420fig1.pdf
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.
Contacts: Terreno Resources Philip Williams, CFA President and
CEO 416.643.7631
Terreno Resources Corp. (TSXV:TNO)
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