VANCOUVER, BRITISH COLUMBIA, Jul 25, 2012 (MARKETWIRE via COMTEX) — Guerrero Exploration Inc. (“Guerrero” or the “Corporation”) (tsx venture:GEX) announces that it has, by mutual agreement, terminated the Option Amendment and Reorganization Agreement with Riverside Resources Inc. announced earlier, and has determined that it will not pursue its option on the Chapalota property in Mexico. It has, subject to regulatory approval, entered into a binding letter of intent to acquire all of the issued and outstanding shares of Pinette Copper Corp (“Pinette”), a private Vancouver-based mineral exploration company with 2 exploration properties located in Botswana. Pinette has had these copper exploration properties for the last approximately 2 and 3 years respectively and has spent a total of approximately $2,500,000 to date on them. Exploration is ongoing.
The letter of intent provides that Guerrero will issue approximately 33,809,885 to the shareholders of Pinette, a nominee of Pinette will join the board of Guerrero, and the current private placement of up to $250,000 will be increased to up to $1,000,000 on the same terms. Current management will continue although the Corporation will issue 4,080,000 common shares at a deemed price of $0.05 per share to settle any obligations it may have under existing consulting agreements. The Corporation will also pay a finder’s fee of 1,250,000 shares to a third party. This transaction is subject to customary closing conditions, including approval by the Pinette shareholders, due diligence and regulatory approval.
The Corporation has closed on the first $250,850 of the above noted private placement. Securities issued on this closing are subject to resale restrictions until November 26, 2012.
The Corporation also announces the recent resignation of Peter Miles from the board, and wishes to thank him for his service during his tenure on the board.
About Guerrero Exploration Inc.
Guerrero is committed to a long term business strategy designed to achieve optimal levels of profitability and shareholder value. Guerrero is a Canadian based exploration mining company with a focus on the high yielding Mexican copper, gold and silver mining area known as the Southern Mexican Gold Belt and the Sierra Madre Occidental Belt. The Corporation’s common shares trade on the TSX Venture Exchange under the symbol “GEX”. For more information, please visit www.grxpl.com or contact investor relations.
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:
Guerrero Exploration Inc.
David Stadnyk
President and Chief Executive Officer
604.685.0088 Ext. 229
[email protected]Guerrero Exploration Inc.
Investor Relations
604.685.0088 Ext. 228
