Esperanza and Silver Standard Close San Luis Sale
03 August 2011 - 5:12AM
Marketwired
Esperanza Resources Corp. (TSX VENTURE: EPZ)(PINK SHEETS: ESPZF) is
pleased to announce that it has closed the sale of Esperanza's 30
percent interest in the San Luis joint-venture in Peru to Silver
Standard Resources Inc.
Consideration for the sale was:
-- Canadian $17 million,
-- The return of 6,459,600 EPZ shares owned by Silver Standard (which
Esperanza will cancel), and
-- A 1 percent net smelter return royalty on all future production from the
San Luis project.
Mr. Bill Pincus, Esperanza's CEO and President said, "This
concludes a noteworthy and successful period for Esperanza. The
exploration and feasibility study of the San Luis project has
yielded a significant return to our investors. As a result we have
been able to add to our treasury, now at approximately C$25
million, while reducing outstanding shares and concentrating
ownership. Esperanza will also continue to participate in the
project through its royalty interest."
He added, "At Esperanza we will now focus our efforts and
resources on advancing the Cerro Jumil, Mexico project, helping
Global (31% owned by Esperanza) with its Strieborna, Slovakia
project and exploring our new prospects."
About Esperanza
Esperanza is focused on advancing the development of its
principal property, the wholly-owned Cerro Jumil gold project in
Morelos State, Mexico. It is also actively investigating 11 other
exploration interests in Peru and Mexico. In October of 2010 it
announced a strategic investment which resulted in a 31% interest
in Global Minerals Ltd. (TSX VENTURE: CTG), owner of the Strieborna
silver/copper/antimony project in Roznava, Slovakia.
SAFE HARBOR: Some statements in this release are forward-looking
in nature. The United States Private Securities Litigation Reform
Act of 1995 provides a "safe harbor" for certain forward-looking
statements. Such statements include statements as to the potential
of the Company's properties, the ability to finance further
exploration, permit drilling and other exploration work, and the
availability of drill rigs.
The forward-looking statements involve risks and uncertainties
and other factors that could cause actual results to differ
materially, including those relating to exploration and bringing
properties into production. Please refer to a discussion of some of
these and other risk factors in Esperanza's Form 20-F filed with
the U.S. Securities and Exchange Commission. The forward-looking
statements contained in this document constitute managements'
current estimates as of the date of this release with respect to
the matters covered herein. Esperanza expects that these
forward-looking statements will change as new information is
received and that actual results will vary, possibly in material
ways. Forward-looking statements are based on the beliefs,
expectations and opinions of management on the date the statements
are made, and the company does not assume any obligation to update
forward-looking statements if circumstances or management's
beliefs, expectations or opinions should change. For these reasons,
investors should not place undue reliance on forward-looking
statements.
Neither the TSX Venture Exchange nor the Investment Industry
Regulatory Organization of Canada accepts responsibility for the
adequacy or accuracy of this release.
Contacts: Esperanza Resources Corp. Bill Pincus President and
CEO Toll Free: 1 866 890 5509 info@epzresources.com
www.epzresources.com
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