Calgary, Alberta (FSCwire) – Morro Bay Resources Ltd. (“Morro Bay” or the “Company”) (TSX-V: MRB; OTCQX: MRRBF) hereby advises, as announced on May 30, 2016, the defaults by Morro Bay alleged by Riverside Resources Inc. ("Riverside") have not been remedied by Morro Bay. As a result, subject to the requirements of the May 25, 2016 Option Amending Agreement between Riverside and Morro Bay (the "Amending Agreement") being met, Morro Bay's interest in the Peñoles exploration project will terminate and will be returned to Riverside. The Amending Agreement has been filed on SEDAR by Morro Bay.
The Amending Agreement requires Riverside to transfer to Morro Bay or (subject to applicable securities laws) its assigns, 20,108,108 Morro Bay Common Shares currently owned by Riverside. Morro Bay has requested this transfer to its assigns.
Pursuant to the Amending Agreement, Morro Bay has the option to return the 0.75% net smelter returns royalty in the Peñoles Project (the "Royalty") in exchange for forgiveness of debt. Morro Bay has therefore elected (subject to the satisfaction of other terms of the Amending Agreement) to return the Royalty to Riverside in exchange for forgiveness of the debt allegedly incurred by Riverside on the Peñoles Project in the amount of $139,578.
John Zang, CEO of Morro Bay, stated "Assuming all of the terms and conditions of the Amending Agreement are met, this will result in Morro Bay having no further interest in the Peñoles Project. Morro Bay is currently considering other business opportunities".
Morro Bay also announces that effective as of June 15, 2016, Garth Kirkham has resigned from the Morro Bay Board of Directors. John Zang stated "Mr. Kirkham was of significant assistance as a Board member. His knowledge and expertise in resource exploration was invaluable. We thank Mr. Kirkham for all of his assistance to Morro Bay."
Morro Bay is currently continuing to locate and analyse other business opportunities both within the mining sector and other business opportunities.
About Morro Bay
Morro Bay is a junior mineral exploration company based in Calgary, Alberta, Canada, focused on the exploration for precious metals in Mexico. Morro Bay's business strategy is to build shareholder value by rapidly advancing the Peñoles Project in Mexico through the resource delineation stage.
Further Information
For further information please contact:
Morro Bay Resources Ltd.
John C. Zang
President and Chief Executive Officer
T: 403 680 9264
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Information in this news release may contain forward looking information. Statements containing forward looking information express, as at the date of this news release, the Company's plans, estimates, forecasts, projections, expectations, or beliefs as to future events or results and are believed to be reasonable based on information currently available to the company.
There can be no assurance that forward-looking statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. Readers should not place undue reliance on forward-looking information.
The forward-looking information contained in this news release is as of the date hereof and Morro Bay does not undertake any obligation to update publicly or to revise any of the included forward looking statements contained herein, except as required by applicable law. The forward-looking statements contained herein are expressly qualified by this cautionary statement.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any state in the United States in which such offer, solicitation or sale would be unlawful. The securities referred to herein have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
Original Article: http://www.stockhouse.com/news/press-releases/2016/06/21/morro-bay-updates-status-of-the-pe-115-oles-joint-venture
