VANCOUVER, British Columbia, Jan 27, 2012 (BUSINESS WIRE) — Westridge Resources Inc. (the “Company”) is pleased to announce that it has received final approval from the TSX Venture Exchange (the “Exchange”) of the option agreement (the “Option Agreement”) entered into by its wholly-owned subsidiary, Minera Westridge S.A. de C.V. (“Minera”), with Musgrove Minerals Corp. (“Musgrove”) and its wholly-owned subsidiary, Minerales Jazz S.A. de C.V., pursuant to which Minera has been granted the option to acquire up to a 100% interest in an to certain mineral concessions in the United Mexican States known as the Charay Project (the “Property”).
The Option Agreement
Under the terms of the Option Agreement, Minera has the exclusive right and option (the “Option”) to earn an initial 80% interest in the Property by paying to Musgrove, an aggregate of $450,000, with $225,000 payable on the first anniversary date from the date of approval of the Option Agreement by the Exchange (the “Effective Date”) and an additional $225,000 payable on the second anniversary date from the Effective Date. Minera has also agreed, during the term of the Option Agreement, to assume payments to certain underlying owners of the Charay Project and will pay an aggregate of $2,367,500 over a two-period commencing on the Effective Date with $1,185,000 payable during the first year of the Option. In addition, the Company will issue to Musgrove an aggregate of 1,200,000 common shares in the capital of the Company, with 400,000 common shares issuable on the Effective Date, an additional 400,000 common shares issuable on the first anniversary date from the Effective Date and an additional 400,000 common shares issuable on the second anniversary date from the Effective Date. Minera has also agreed to fund a work program of not less than $500,000 on or before February 28, 2012 and assume Musgrove’s indebtedness to Fibercrown Manufacturing Ltd. in the principal amount of $258,000 plus interest at a rate of $1,720 per month from February 1, 2012.
After earning this 80% interest in the Property, Musgrove’s 20% interest will be carried to the earlier of commercial production, or the exercise by Minera of an option to acquire the remaining 20% interest. Minera will have the right at any time up to 60 months from the Effective Date, to purchase the remaining 20% interest from Musgrove for a single $5,000,000 lump sum payment. The Property is subject to a 2% net smelter return royalty payable to Tektite Financial Inc. upon commencement of commercial production.
At all times during the term of the Option, the Company will be the operator for all exploration and development activities on the Property.
Pursuant to a finder’s fee agreement, the Company will issue 123,076 common shares (the “Finder’s Shares”) and 11,538 common share purchase warrants (the “Finder’s Warrants”) to Fibre-Crown Manufacturing Inc., an arm’s length party to the Company, as a finder’s fee in connection with the Option. Each Finder’s Warrant will entitle the holder to acquire one additional common share of the Company at a price of $0.85 until January 27, 2013. The Finder’s Shares and any common shares issuable upon exercise of the Finder’s Warrants, if any, are subject to a mandatory hold period expiring on May 28, 2012.
Filing of Technical Report on the Charay Project
The Company is also pleased to announce a National Instrument 43-101 technical report dated January 31, 2011, as amended November 30, 2011, has been filed by the Company and is available on SEDAR under the Company’s profile. The technical report, entitled “Geological Assessment and Exploration Proposal (2011/12) for the Charay Project (La Mina El Padre)”, was prepared by Phil van Angeren, P.Geol. and John E. Dreier, Ph.D., CPG.
About Westridge Resources
Westridge Resources Inc. is a Canadian-based mineral exploration company focused on the acquisition, evaluation and exploration of mineral resource properties.
ON BEHALF OF THE BOARD
Peter Schulhof
President
Neither TSX Venture Exchange nor its Regulations 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.
Forward Looking Statements
Statements contained in this news release that are not historical facts constitute “forward-looking statements” or “forward-looking information” within the meaning of applicable securities laws and are based on expectations, estimates and projections as of the date of this release. Forward-looking statements include, without limitation, possible events, statements with respect to possible events, the future price of gold and other commodities, the realization of mineral resource estimates and success of exploration activities. The words “is expected” or “estimates” or variations of such words and phrases or statements that certain actions, events or results “may” or “could” occur and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Such factors include, but are not limited to: fluctuations in the spot and forward price of gold or certain other commodities; changes in national and local government legislation, taxation, controls, regulations and political or economic developments in Canada; business opportunities that may be presented to, or pursued by, the Company; operating or technical difficulties in connection with mining activities; the speculative nature of gold exploration and development, including the risks of obtaining necessary licenses and permits; diminishing quantities or grades of reserves; and contests over title to properties, particularly title to undeveloped properties. In addition, there are risks and hazards associated with the business of gold exploration, development and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion losses (and the risk of inadequate insurance, or the inability to obtain insurance, to cover these risks). Many of these uncertainties and contingencies can affect the Company’s actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, the Company. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are provided for the purpose of providing information about management’s expectations and plans relating to the future. All of the forward-looking statements made in this release are qualified by these cautionary statements and those made in our other filings with the securities regulators in Canada. These factors are not intended to represent a complete list of the factors that could affect the Company. Although the Company believes that the expectations in the forward-looking statements are reasonable, actual results may vary, and future results, levels of activity, performance or achievements cannot be guaranteed.
SOURCE: Westridge Resources Inc.
Acqua Capital Group
John Bevilacqua, 604-648-0518
[email protected]
