KELOWNA, BRITISH COLUMBIA--(Marketwired - July 11, 2013) - Toro Resources Corp. (TSX VENTURE:TRK) ("Toro") is pleased to announce that it has entered into a letter of intent (the "Letter Agreement") whereby PBar Land and Minerals, LLC, ("PBar") upon completion of a formal option agreement (the "Option"), has the right to earn up to a 51% interest in the Morgan Peak copper project ("Morgan Peak"). PBar is private mineral exploration company located in Phoenix, Arizona.
Under the terms of the Option, PBar has the right, subject to the satisfaction of certain conditions precedent including the receipt of TSX Venture Exchange (the "Exchange") acceptance, to acquire up to 51% interest in Morgan Peak by incurring US$4,300,000 of staged exploration expenditures and paying US$1,250,000 on or before the 4th anniversary date of the Agreement as follows:
| Term | Work Obligation | Cash Consideration | |||
| 12 months | $ | 850,000 | $ | 150,000 | |
| 24 months | 1,000,000 | 200,000 | |||
| 36 months | 1,225,000 | 300,000 | |||
| 48 months | 1,225,000 | 600,000 | |||
| Total | $ | 4,300,000 | $ | 1,250,000 | |
Once PBar has earned the initial 51% interest, they will have the right to increase their interest to 60% upon completion of a Preliminary Economic Assessment and PBar may increase its interest to 70% upon completion of a Definitive Feasibility Study.
The Letter Agreement is subject to the satisfaction of the usual conditions precedent including the completion of formal documentation and due diligence and the receipt, if necessary, of all necessary approvals of the Exchange and all other regulatory authorities and third parties to the option. Toro has agreed, subject to Exchange acceptance, to the payment of a finder's fee upon the successful completion of the Acquisition.
"We are very pleased to have reached an agreement with PBar, where they have the opportunity to earn in to the Morgan Peak copper project in a joint effort with our successful management and technical team. With this agreement we'll have two highly motivated groups to further advance this prospect," stated Dev Randhawa, Chairman and CEO of Toro.
The Morgan Peak Copper Project
Located in Arizona's highly productive Globe-Miami mining district, Morgan Peak Copper project is located within close proximity of BHP's Pinto Valley mine (US$650m sale pending to Capstone Mining Corp), KGHM International's Carlota Mine, Freeport-McMoRan Copper and Gold's Miami mine and Resolution Copper's world-class copper deposit. The Morgan Peak property has been explored since the 1940's by numerous groups including Consolidated Copper, Kerr-McGee, Exxon (Humble Minerals) Phelps Dodge and more recently American Copper Corp.
Historic drilling has identified copper as copper oxide and chalcocite occurring as a shallow "blanket" of mineralization within the project boundaries. The zone of mineralization is an area of roughly 1,500 meters wide by 3,600 meters long extending in an easterly direction through throughout the property. Evidence from past drilling, geological mapping and geophysical surveys point to the potential for a significant heap leachable chalcocite ore deposit to exist within the combined West Lobe, Link Zone and East Lobe.
ON BEHALF OF THE BOARD OF DIRECTORS OF TORO RESOUCES CORP.
Dev Randhawa, Chairman and CEO
Cautionary Statement: Certain information contained in this press release constitutes "forward-looking information", within the meaning of Canadian legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology 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 state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur", "be achieved" or "has the potential to". Forward looking statements contained in this press release may include statements the future operating or financial performance of Toro which involve known and unknown risks and uncertainties which may not prove to be accurate. Actual results and outcomes may differ materially from what is expressed or forecasted in these forward-looking statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Among those factors which could cause actual results to differ materially are the following: market conditions and other risk factors listed from time to time in our reports filed with Canadian securities regulators on SEDAR at www.sedar.com. The forward-looking statements included in this press release are made as of the date of this press release and the Company and Toro Resources disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THE TERMI IS DEFINDED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS REPONSIBILITY FOR THE ADEQUANCY OR ACCURANCY OF THIS RELEASE.
Contact Information:
Greg Downey
Investor Relations
1-866-979-7022