Foundation Resources - Corporate Update
02 March 2013 - 3:00AM
Access Wire
Vancouver, B.C. March 1, 2013; Foundation Resources Inc. (TSX.V:
FDN: "Foundation" or "the Company") On behalf of the Management and
Board of Directors, we are pleased to provide our shareholders with
a comprehensive update on the Company. By the end of 2012,
Foundation had achieved a number of significant milestones on the
Company's Coldstream property including: -Defined a resource at the
OG deposit, which at a cut off grade of 0.4 g/t gold, is estimated
to contain 96,400 oz gold (3,516,700 tonnes grading 0.85 g/t gold)
in the Indicated category and 763, 276 oz gold (30,533,000 tonnes
grading 0.78 g/t gold) in the Inferred category [Technical Report
and Resource Estimate on the OG Deposit, Coldstream Property,
Northwestern Ontario, TetraTech Wardrop December 11, 2011]
-Confirmed through drilling the mineralized corridor that hosts the
Moss Lake Gold Mine continues to the north-east onto FDN's Span
Lake claims (See new release April 13, 2012) -Identified priority
exploration targets on other areas of the large Coldstream property
including Burchell west where surface grab samples up to 17.85 g/t
gold have been identified coincident with an IP anomaly and Iris
Lake where initial drilling defined a 25-60m x 600m mineralized
zone which includes results of up to 8.39 g/t gold over 11 metres.
(See news releases January,17, 2012 and March, 30, 2011) The
Company and its shareholders have been unable to obtain value for
these exploration successes, as has generally been the case for
junior exploration companies in the last 12 months. The FDN share
price, like that of virtually all of its peers has materially
declined in the current market environment. However, rather than
taking the hunker down and ride it out approach many other
companies are taking in hopes of surviving the ongoing challenges,
Foundation has taken a proactive approach believing that adversity
does in fact create opportunity. To this end, the Company is
endeavouring to complement its technical-geological focused team
with stronger capital market expertise. To help facilitate this
objective the Company engaged MGI Securities to help identify
accretive business opportunities and help finance some of the
opportunities identified. This strategy has led to Foundation
making two offers to acquire existing companies both of which give
potential synergies with Foundation. The first offer was to
Sheltered Oak Resources (TSX-V: OAK) which their board has
accepted; and the second pertains to Solid Gold Resources (TSX-V:
SLD) which in spite of representing a 100% premium to the then
current share price, has so far been declined by the SLD Board. The
Proposed Sheltered Oak Transaction Sheltered Oak ("OAK") offers
Foundation a timely means to immediately strengthen the combined
company's capital markets strength primarily through JJ Elkin
joining the Company's board and the through the addition of Robert
Hanson a skilled diplomat and negotiator with strong relations with
the First Nations communities. JJ Elkin brings strong business
acumen and a history of success earned through a Harvard MBA. JJ
Elkin was an analyst and fund manager with Fidelity and entered the
resource sector with TVX Gold, which he and Eike Batista built and
was ultimately sold to Kinross Gold. Robert Hanson served as a
consultant for the US Presidential administration from 1978-81
where he provided opinions and information on US - Canadian trade
matters. Mr. Hanson has maintained close contact with influential
individuals within political circles. In November of 2012, Mr.
Hanson demonstrated his skills by bringing together Foundation and
Wahgoshig First Nation (the "WFN") such that Foundation could
become a party to a Memorandum of Understanding (the "WFN MOU")
between OAK and WFN covering OAK's Kerrs Property. While the WFN
MOU is limited to the Kerrs Property, it does provide a
constructive starting point for future negotiations. FDN's offer to
OAK is comprised of one share of FDN for each six shares of OAK.
OAK's management is recommending acceptance of the offer and it is
being put to the OAK shareholders for a vote March 28, 2013, which
if approved would result in the transaction being completed in
early April. The Proposed Solid Gold Transaction Levering off its
relationship with MGI and the established positive relationship
between Robert Hanson / OAK and the WFN, Foundation made two offers
to acquire all of the outstanding shares of Solid Gold ("SLD"), the
most recent offer being a share for share transaction. "On January
25, 2013, the Division Court of Ontario declined to hear SLD's
appeal of a January 2012 injunction granted to the WFN.
Foundation's last offer continues to represent a 100% premium to
SLD's current share price. Management of Foundation is hopeful it
can strike a fair and balanced transaction with SLD in the future.
On December 12, 2012, SLD announced it had received a requisition
from its shareholders requesting a special meeting of SLD's
shareholders for the purposes of electing a new board of directors
comprised of three new directors and one incumbent director. SLD
subsequently disclosed its intention to hold such special meeting
on April 25, 2013. All of us at Foundation are confident our
actions will build a stronger mineral exploration company, with a
strong portfolio of mineral assets managed by experienced capital
markets and technical personnel. Success in building significant
shareholder value in spite of the ongoing market challenges is our
primary focus. To this end, we thank all of our shareholders for
their continued support and look forward to a successful and value
creating 2013. The technical information in this news release has
been reviewed and approved by Ike Osmani, MSc, P.Geo, who is a
Qualified Person for the Company under NI 43-101. On behalf of the
Board of Directors Barry Girling Interim CEO & Director
Additional information is available on the Company's website at:
fdnresources.com For further information, please contact: Fern
Turner Barry Girling Foundation Resources Inc. Foundation Resources
Inc. VP Business Development Interim CEO & Director (604)
681-0405 - ext. 122 (604) 639-4528 Neither the TSX Venture Exchange
nor its Regulation Services Provider (as the term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.) Forward Looking
Statements This news release contains certain "forward-looking
statements" and "forward-looking information" under applicable
securities laws, and include any statements regarding beliefs,
plans, expectations or intentions regarding the future. All
statements in this release, other than statements of historical
facts are forward-looking statements that involve various risks and
uncertainties. Such forward looking statements include, among
others, that the proposed Transaction will be completed and that
the combined entity will add opportunity and value for its
shareholders. Forward-looking statements are based on the opinions
and estimates of management at the date the statements are made,
and are based on a number of assumptions and subject to a variety
of risks and uncertainties and other factors that could cause
actual events or results to differ materially from those projected
in the forward-looking statements. Although the Company believes
the expectations expressed in such forward-looking statements are
based on reasonable assumptions, such statements are not guarantees
of future performance and actual results or developments may differ
materially from those in the forward-looking statements.
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