Olympic Resources Enters into Non-Binding Agreement to Acquire Besakoa Graphite Property in Madagascar
April 29, 2013 (Source: Marketwire) Vancouver, BC — Olympic Resources Ltd. (TSX VENTURE:OLA) (the “Company” or “Olympic”) has entered into a non-binding letter agreement with Sunridge Gold Corp (“Sunridge”) and Majescor Resources Inc. (“Majescor”), (Sunridge and Majescor, jointly the “Seller”) for an option to acquire 100% of Daraina Exploration S.A.R.L. (“Daraina”). The Sellers jointly own the shares of Daraina, which holds the Besakoa mineral exploration property license located in Madagascar.
The Company was on site in Madagascar to conduct a technical site visit the week of April 15, 2013 and will conduct further due diligence to follow.
The letter agreement outlines the principal terms and conditions to enter into a two-year option to purchase 100% of the shares of Daraina on signing a definitive option agreement and paying a total of $150,000, split $75,000 to Sunridge and $75,000 to Majescor. Before the second year anniversary of signing a definitive option agreement, Olympic must expend a minimum of $1,000,000 (first year $300,000 obligation) in exploration work on Besakoa. 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 Sunridge and $625,000 to Majescor, subject to the retention by Sunridge and Majescor of a 2% net smelter returns royalty on the Besakoa project, split 1% to Sunridge and 1% to Majescor. Upon successful conclusion of due diligence, on direction of Olympic, the parties will seek to draft a definitive agreement, subject to any regulatory approvals that may be required.
Besakoa Property, Madagascar:
The following property description and technical information in this news release is historical in nature and is based on data and reports provided to the Company by the Sellers.
The Besakoa Property covers approximately 60 square kilometres in south central Madagascar and can be accessed by road from the port city of Toliara.
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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-meter diamond drill program. The results of this work were generally disappointing in regards to base metal targets.
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 43-101 compliant graphite mineral resource 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 2.5km up to 7.5km 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.
Mr. Michael J. Hopley is the Qualified Person for Sunridge and has reviewed and approved the technical information contained in this press release. Except that Sunridge has entered into the non-binding letter agreement with Majescor and Olympic, Mr. Hopley has no relationship with Olympic. Olympic wishes to clarify that the reported historical information, sample analysis and grades stated in this news release have not been verified and this historical data has not yet been reviewed by an independent Qualified Person on behalf of Olympic.
Sunridge Gold Corp
Sunridge is listed on the TSX Venture Exchange (symbol SGC) and is a mineral exploration and development company focused on the exploration and development of base and precious metal deposits on the Asmara Project in Eritrea.
Majescor Resources Inc.
Majescor is a junior explorer focusing on emerging mineral districts. In addition to the SOMINE project, Majescor’s project portfolio includes the Mistassini uranium exploration projects in Quebec (under Joint-Venture: 40 % Majescor and 60% Strateco Resources Inc.) the Besakoa gold and base metal property in Madagascar (50%-50% joint venture with Sunridge Gold Corp.).
Olympic Resources Ltd.
Olympic Resources Ltd. (TSX VENTURE:OLA) is a TSX Venture Exchange listed resource company engaged in the exploration, development and acquisition of graphite, gold and precious metal properties. The Company is currently evaluating several prospective graphite properties in Canada and other countries to acquire and explore. Olympic also has an option to earn a 60-per-cent 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.
Forward Looking Statements
Statements in this document which are not purely historical are forward-looking statements, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Forward-looking statements contained in this document are based on certain key expectations and assumptions made by Olympic, including, without limitation, expectations and assumptions respecting the outlook of exploration activity on the Besakoa Graphite Property, the accuracy of the historical information provided by Sunridge, and the impact on Olympic’s business and management assessment of future operations and the completion of the earn-in of the Besakoa Graphite Property. Although the forward-looking information contained in this press release is based upon what Olympic’s management believes to be reasonable assumptions, the Company cannot assure investors that actual results will be consistent with such information. Forward-looking information reflects current expectations of management regarding future events and operating performance as of the date of this press release.
It is important to note that actual outcomes and the Company’s actual results could differ materially from those in such forward-looking statements. Risks and uncertainties include, but are not limited to, economic, competitive, governmental, environmental and technological factors that may affect the Company’s operations, markets, products and prices. Readers should refer to the risk disclosures outlined in the Company’s Management Discussion and Analysis of its audited financial statements filed with the British Columbia Securities Commission.
The forward-looking information contained herein is expressly qualified in its entirety by this cautionary statement. Forward-looking information reflects management’s current beliefs and is based on information currently available to the Company. The forward-looking information is made as of the date of this press release and Olympic assumes no obligation to update or revise such information to reflect new events or circumstances, except as may be required by applicable law.
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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