Majescor Enters Into Non-Binding Agreement to Sell its 50% Interest in the Besakoa Graphite Property, Southern Madagascar
April 30, 2013 (Source: Marketwire) Montreal, QC — Majescor Resources Inc. (“Majescor” or the “Company”) (TSX VENTURE:MJX) is pleased to report it has entered into a non-binding Letter Agreement with Olympic Resources Ltd. (“Olympic”) (TSX VENTURE:OLA) and Sunridge Gold Corp. (“Sunridge”) (TSX VENTURE:SGC) whereby the Company and Sunridge agree to sell their respective 50% interest in Daraina Exploration S.A.R.L. to Olympic. Daraina S.A.R.L. is a Malagasy registered mining company which holds 100% mineral rights to the Besakoa polymetallic and graphite property located in southern Madagascar.
Under the terms of the Letter Agreement, Majescor and Sunridge agree to sell their respective 50% interest in Daraina S.A.R.L. (“Daraina”) and Olympic agrees to purchase 100% of the shares of Daraina under the following conditions: (i) Majescor, Sunridge and Olympic shall enter into a definitive two-year option agreement; (ii) Upon signing of the definitive option agreement, Olympic shall pay a total of $150,000, split $75,000 to Majescor and $75,000 to Sunridge; (iii) Before the second year anniversary of signing the definitive option agreement, Olympic must expend a minimum of $1,000,000 in exploration work on the Besakoa property, including a firm year-1 commitment of $300,000; (iv) Upon completion of the expenditures, Olympic may exercise its option to purchase 100% of the shares of Daraina by delivering notice and paying a total of $1,250,000, split $625,000 to Majescor and $625,000 to Sunridge, subject to the retention by Majescor and Sunridge of a 2% net smelter returns royalty on the Besakoa property, split 1% to Majescor and 1% to Sunridge. Upon successful conclusion of due diligence, on direction of Olympic, the parties will seek to draft a definitive agreement, subject to each Company’s Board approval and to any regulatory approvals that may be required.
Olympic was on site in Madagascar to conduct a technical site visit of the Besakoa property the week of April 15, 2013 and will conduct further due diligence to follow.
About the Besakoa Property, southern Madagascar
The Besakoa polymetallic and graphite property is located in the Atsimo-Andrefana region of South Central Madagascar. The property consists of a block of 144 contiguous map-designated claims covering approximately 60 square kilometres and can be accessed by road from the port city of Toliara.
Between 2008 and 2011, Sunridge completed approximately $2,000,000 worth of exploration work on the project to assess the property for copper/zinc/gold volcanogenic massive sulfide (VMS) targets. This work included airborne and ground geophysical surveys (electromagnetics, magnetics, gravity and audio-magneto-tellurics) soil geochemical surveys, geological and structural mapping as well as a 5,000 m core drilling program. The results of this work were generally disappointing in regards to base metal targets.
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The Besakoa property is located on the same geological trend and approximately 25 km north of Energizer Resources’ Green Giant Molo Graphite Project, which has a recently reported National Instrument (NI) 43-101 compliant graphite mineral resource estimate and Preliminary Economic Assessment. The graphite mineralization at Besakoa occurs within a folded and highly metamorphosed sequence of sedimentary rocks that trends north to north-northeast and dips steeply to the east.
From preliminary surface mapping and rock sampling conducted by Sunridge at Besakoa, these graphitic meta-sedimentary rocks are closely associated with shallow airborne EM conductors. A total of four strong and shallow airborne EM conductors are defined in the property; two are located in the west (west and far west anomalies) and two in the east (East and far-east anomalies). These shallow airborne EM conductors trends from 2.5 km up to 7.5 km along strike and vary in widths from 100m in the east up to 800m in the west.
The graphite mineralization at Besakoa occurs as disseminated flakes within the highly metamorphosed (amphibolite up to granulite metamorphic grades) sedimentary rocks.
Majescor Resources Inc. (TSX VENTURE:MJX) is a junior explorer focusing on emerging mineral districts. In addition to the Besakoa polymetallic and graphite property in Madagascar (50%-50% joint venture with Sunridge Gold Corp.), Majescor’s project portfolio includes the Mistassini uranium exploration project in Quebec (under joint-Venture: 40 % Majescor and 60% Strateco Resources Inc.). In the Republic of Haiti, Majescor, through its 100%-held subsidiary Simact Alliance Copper-Gold Inc., holds a majority interest SOMINE SA, a registered Haitian corporation. SOMINE SA in turn holds 100% mineral rights to the Douvray porphyry copper-gold project and the Faille B gold project located in the Northeast mineral district of Haiti, near the port-city of Cap-Haitian. The Douvray and Faille B projects are each covered by a five-year renewable Mining Exploitation Permit awarded to SOMINE SA on December 21, 2012 and are collectively covered by a Mining Convention executed with the State of Haiti on May 5, 2005 and valid until March 9, 2020. On January 15, 2013, Majescor published the first NI 43-101 compliant mineral Resource estimate for the Douvray porphyry copper-gold project (Inferred Mineral Resource of 189.5 Mt grading 0.30% Cu, 0.05 g/t Au, 1.12 g/t Ag and 23.05 g/t Mo at a base cut-off of 0.1% Cu).
Sunridge Gold Corp. (TSX VENTURE:SGC) is a mineral exploration and development company focused on the acquisition, exploration, discovery and development of base and precious metal projects on the Asmara Project in Eritrea and exploration properties in Madagascar. Sunridge currently has approximately 175 million shares outstanding.
Olympic Resources Ltd. (TSX VENTURE:OLA) is a junior resource company engaged in the exploration, development and acquisition of graphite, gold and precious metal properties. Olympic is currently evaluating several prospective graphite properties in Canada and other countries to acquire and explore. The company also has an option to earn a 60% interest in the Dragon Lake gold property in the Yukon and an agreement with Yukon Exploration Syndicate Inc. to acquire a 100% interest in the Ice, Max and Sun gold projects also located in the Yukon within the Carmacks Caldera.
Mr. C.Tucker Barrie, Ph.D., P.Geo. (Ontario), Vice-President Exploration and Director of Majescor is the Qualified Person for Majescor and has reviewed and approved the technical information contained in this press release.
This News Release may contain or refer to “forward-looking statements” which reflect Management’s expectations regarding the Company’s future growth, results of operations, performance and business prospects and opportunities. These statements reflect Management’s current beliefs at the time of this news release and are based on information currently available to Management. All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of Majescor Resources inc., are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Management’s expectations are exploration risks detailed herein and from time to time in the filings made by the Company with securities regulators.
Neither 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.
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