|
News Library:
Solitario Resources/Newmont Mining Sign Definitive Agreements On Strategic Alliance, Private Placement, Yanacocha Royalty And Work Commitment
January 19, 2005
|
Denver, Colorado: Solitario Resources Corporation ("Solitario") today announced it has signed the following definitive agreements:
- A Strategic Alliance agreement to explore for gold in South America with Newmont Overseas Exploration Limited, a subsidiary of Newmont Mining Corporation ("Newmont") (NYSE: NEM);
- A Cdn$4.59 million private placement into Solitario with Newmont Mining Corporation of Canada Limited (a subsidiary of Newmont);
- An amendment to a previously signed royalty agreement with subsidiaries and affiliates of Newmont adjusting Solitario's net smelter return royalty ("NSR") and establishing a US$4.0 million work commitment on a 150,000-acre property located in northern Peru.
Solitario previously reported it had signed Letters of Intent on these agreements on November 22, 2004.
Solitario and Newmont will mutually select specific regions ("Alliance Projects") in South America to explore for gold. The first such Alliance Project is approximately 4,000 square kilometers in size and located in southern Peru. Solitario will initiate its exploration program beginning in early February. Solitario will own 100% of any property acquired ("Alliance Property") subject to a sliding scale royalty to a maximum of 2% NSR royalty in favor of Newmont and Newmont's right to joint venture any acquired Alliance Property (see Solitario's November 22, 2004 release for details). Solitario will spend approximately US$3.8 million on exploration as its contribution to the Strategic Alliance.
Newmont purchased 2,700,000 common shares of Solitario for Cdn$1.70 per share, or Cdn$4,590,000 in aggregate. Before this placement, Solitario had approximately 24.7 million shares outstanding.
The Yanacocha royalty amendment modified the royalty schedule for Solitario's 150,000- acre royalty property situated immediately north of the Newmont Mining-Buenaventura's Minera Yanacocha Mine, the largest gold mine in South America, and established a US$4.0 million work commitment (see Solitario's November 22, 2004 release for details).
Chris Herald, President and CEO of Solitario, stated, "The Strategic Alliance with Newmont will significantly advance Solitario's efforts in South America and makes available to our successful exploration team Newmont's advanced exploration technologies. Additionally, the adjustment of the royalty and establishment of a work commitment on Solitario's Yanacocha royalty property will ensure that exploration advances for years to come, hopefully leading to a discovery in this prolific gold producing district."
Solitario is a gold, platinum-palladium, and base metal exploration company actively exploring in Peru, Brazil, Bolivia and Nevada (USA). Solitario is traded on the Toronto Stock Exchange (TSX: SLR). Solitario also holds an approximate 13.6% interest in Crown Resources Corporation (OTCBB: CRCE) on a fully diluted basis. Crown has signed a definitive acquisition agreement with Kinross Gold Corporation (TSX: K; NYSE; KGC) of Toronto, Canada, whereby Kinross will acquire Crown (see Crown news release dated November 20, 2003).
FOR MORE INFORMATION, CONTACT: |
Debbie W. Mino
Director-Investor Relations
(800) 229-6827
|
Christopher E. Herald
President & CEO
(303) 534-1030
|
This press release includes certain "Forward-Looking Statements" within the meaning of section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential mineralization and reserves, exploration results and future plans and objectives of Solitario, 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. Development of Solitario’s properties are subject to the success of exploration, completion and implementation of an economically viable mining plan, obtaining the necessary permits and approvals from various regulatory authorities, compliance with operating parameters established by such authorities and political risks such as higher tax and royalty rates, foreign ownership controls and our ability to finance in countries that may become politically unstable. Important factors that could cause actual results to differ materially from Solitario’s expectations are disclosed under the heading "Risk Factors" and elsewhere in Solitario’s documents filed from time to time with Canadian Securities Commissions, the United States Securities and Exchange Commission and other regulatory authorities.
|
| Current Releases |
|
| Archived Releases |
|
|
|
|
