Silvore Fox Minerals Corp. (the "Corporation" or "Silvore Fox")
(TSX VENTURE: SFX) is pleased to announce the signing of a Letter
of Intent with Gaea Mining Co Ltd. Sarl ("GAEA") pursuant to which
the Corporation and GAEA intend to negotiate the terms of a
definitive agreement (the "Definitive Agreement") under which the
Corporation would earn a 55% interest in two potentially high grade
Copper properties in the Maindelanu region of western Madagascar
(an island nation located in the south east of the African
Continent and south west of the Indian Ocean).
The two properties the Corporation intends to option consist of
the Copper Meteor property in Maintnaro area ("Southern
Properties"), which cover an area of 206.25 km2, and the Copper
Volcano property in Tambohorano area ("Northern Properties") with
an approximate area of 1,500 km2.
Highlights of the Property and current terms of the Letter of
Intent:
-- Silvore Fox and GAEA intend to form a new Madagascar joint venture
company with headquarters in the city of Antananarivo. Silvore Fox will
have a 55% shareholding interest and GAEA will have 45% The joint
venture company will have 100% interest in both properties, with no NSR.
-- Silvore Fox intends to fund exploration and development on the
properties up to a maximum of US$5.5 million within a 3 year period
following the execution of the Definitive Agreement. After Silvore Fox
has reached that level of investment it is anticipated the activities of
the Joint Venture company will be funded by Silvore Fox and GAEA on a
pro rata basis of their respective shareholding interest.
-- Silvore Fox will pay to GAEA, for its 55% interest in the joint venture
company, US$ 4.5 million in cash and shares of Silvore Fox over a 30
month period following the verification of claims for the Southern
Property being transferred from GAEA to the joint venture company in a
manner acceptable to Silvore Fox. GAEA can elect to receive a maximum of
50% of each installment payment in cash, or 100% in Silvore Fox shares,
at their discretion. While the Corporation currently has sufficient cash
on hand to meet that potential requirement it does anticipate the need
to raise additional working capital over the 30 month period to fund
exploration activity, potential acquisitions, and general corporate
purposes that may include cash payments to GAEA.
To complete the purchase agreement Silvore Fox will issue to GAEA a
further 7,700,000 shares of Silvore Fox on the 30 month anniversary date
following the verification of claims for the Southern Property being
transferred from GAEA to the joint venture company in a manner
acceptable to Silvore Fox.
-- In the Northern Properties there are two volcanic vent structures with
basalt and gabbro outcrops, and copper mineralization is widely visible.
-- In recent years local communities have reportedly exported 3000 - 5000
tons of rich ore with an average grade of 35% Cu. (Exploration Project
Brief, Madaca Resources Inc. courtesy Madagascar Ministry of Mines,
2010)
-- The Letter of Intent is subject to regulatory approval and the approval
of the Board of Silvore Fox.
Mr. Dave Owens P.Geo, a qualified person as defined by National
Instrument 43-101, has reviewed and approved the technical
information contained in this news release.
Management Comments
"When Silvore Fox completed the signing of a strategic
partnership agreement with our partners, Beijing Donia Resource Co.
Ltd ("Donia"), in November of 2010 we knew it would transform our
company and open up many new doors. The year 2011 has seen the
beginning of an evolution in Silvore Fox from a provincial company
to an international company. We are focused on high tonne potential
base metal exploration projects within a diversified portfolio of
properties that attempts to minimize political risk without
limiting potential returns for our shareholders.
The letter of intent to option 100% of the Winston Lake area
zinc-copper-silver property, announced February 8, 2011, marked the
first transaction that Silvore Fox has closed since their strategic
partnership with Donia. With an historic resource of 600,000 tonnes
of 21.2% zinc, 1% copper (Inmet Mining, 1998) and the potential for
discovering new high grade primary and secondary deposits in the
area surrounding the Pick Lake deposit we feel this property could
be a game-changer for Silvore Fox. A qualified person has not done
sufficient work to classify the historical estimate as current
mineral resources, and Silvore Fox is not treating the historical
estimate as a current mineral resource. The historical estimate
should not be relied upon, and the Corporation's focus is on
exploring for new deposits in the area.
This Joint Venture opportunity we are announcing today in
Madagascar is the second transaction closed since the signing of
our partnership agreement with Donia, and represents another
potentially high impact property acquisition for the company. We
have been told that grab samples in the area of our Southern
Properties have shown grades as high as 50+% Copper, including
native copper. We recognize that grab samples are selective by
nature and are unlikely to represent average grades on the property
so we are anxious to get in there and confirm this for ourselves.
We intend to aggressively explore the existing high-grade veins to
test the depth of these occurrences and perform a variety of other
testing to assess the potential size of the mineralization on these
properties during the May - November working season for the area.
We have also been informed, by Donia, that they have access to
drill rigs in Madagascar at this time which could help to expedite
our work program here. The Northern Properties, with a similar
geological setting, will also be worked on this season.
Silvore Fox has a great partner in GAEA who brings a wealth of
local knowledge and experience to the table. Our management and
board feel it is essential to have a strong local partner for
projects in developing economies like Madagascar, as evidenced by
the 45% interest retained by GAEA, and we expect to establish many
positive relationships within the local community as we move
forward.
Further details as we progress will be made available including
our intended exploration plans for the May to November exploration
season.
We believe this is definitely an exciting time for Silvore Fox
investors, management, and employees."
- Harry Cabrita, President & CEO, Silvore Fox Minerals
Corp.
Geological information on the Madagascar properties will be
available as it is produced in the coming weeks at our Silvore Fox
website.
Harold J. Cabrita, President and CEO
Dr. Jingbin Wang, Chairman
This announcement contains forward-looking information and
forward-looking statements (collectively "forward-looking
information") under applicable securities laws, relating, but not
limited to the Corporation's expectations, intensions, plans and
beliefs. Forward-looking information can often be identified by
forward- looking words such as 'anticipate', 'believe', 'expect',
'goal', 'plan', 'intend', 'estimate', 'may' and 'will' or similar
words suggesting future outcomes or other expectations including
with respect to the signing of the Definitive Agreement by the
Corporation and GAEA, the funding by the Corporation of the
exploration and development on the properties and the payment by
the Corporation to GAEA for the interest in the joint venture
company. Such forward-looking information is based on current
expectations that involve a number of known and unknown risks and
uncertainties that may cause actual results to differ materially
from those expressed or implied by the forward-looking information.
Factors that could cause actual results to differ materially from
any forward-looking information include, but are not limited to,
the risks that the parties will not proceed with the transaction,
the actual terms of the transaction will differ from those
currently contemplated and the transaction will not be successfully
completed for any reason, capital and operating costs varying
significantly from estimates, delays in obtaining or failures to
obtain required governmental, environmental or other project
approvals, inflation, delays in the development of projects,
uncertainties relating to the interpretation of the geology, and
unanticipated operational or technical difficulties and other
factors. Such forward-looking information is based on a number of
assumptions, including but not limited to, the ability of the
Corporation to raise sufficient capital to pay the exploration and
development costs on the properties and to pay for the interest in
the joint venture company, the availability of skilled labour,
availability of equipment, and future capital and operating costs.
Should one or more risks and uncertainties materialize or should
any assumptions prove incorrect, then actual results could vary
materially from those expressed or implied in the forward- looking
information and accordingly, readers are cautioned not to place
undue reliance on this forward-looking information. The Corporation
does not assume the obligation to revise or update this
forward-looking information after the date of this announcement or
to revise such information to reflect the occurrence of future
unanticipated events, except as may be required under applicable
securities laws.
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: Silvore Fox Minerals Corp. Harry Cabrita President
& CEO 902-832-1060 902-422-9208 (FAX) info@silvorefox.com The
Howard Group Inc. Dave Burwell/Grant Howard Investor Relations
403-221-0915 or Toll Free: 1-888-221-0915 Info@howardgroupinc.com
www.howardgroupinc.com
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