MINORCA TO JOIN TAN RANGE IN DEVELOPMENT OF THE ITETEMIA GOLD PROSPECT
TANZANIA:
MINORCA TO JOIN TAN RANGE IN DEVELOPMENT OF THE ITETEMIA GOLD
PROSPECT, TANZANIA
VANCOUVER, Feb. 17 /CNW/ - Tan Range Exploration Corporation
Alberta Stock Exchange Symbol: TNX
Tan Range Exploration Corporation (''Tan Range'') is pleased to announce
that it has signed a Heads of Agreement with Minorca Resources Inc.
(''Minorca'') under which Minorca will provide an initial C$1.0 million of
financing for Tan Range's Itetemia property in Tanzania and will obtain
options to acquire up to a 50% participating interest in Tan Range's rights to
the property in exchange for C$10 million in cash payments and completion of a
bankable feasibility study.
The initial financing will consist of a private placement of C$1.0
million of units of Tan Range for which Minorca will subscribe at a purchase
price of C$0.85 per unit. Each unit will consist of one common share and one
share purchase warrant exercisable into one common share at C$1.00 within one
year of the closing date of the placement (''Closing Date'') and at C$1.50
within the second year from that date.
Minorca will receive an option expiring 12 months from the closing date
of the above private placement (''Closing Date'') to acquire a 12.5%
participating interest in Tan Range's rights to the Itetemia property in
exchange for C$5.0 million. All proceeds received by Tan Range upon exercise
of the option shall be expended on the Itetemia property. Once Minorca elects
to exercise its option, a joint management committee will be formed to oversee
exploration work on the property with Tan Range as Manager and Operator. The
Manager and Operator will have the tie or casting vote with respect to all
matters with the exception of specified major matters for which unanimous
approval will be required.
Contingent upon the exercise of the first option, Minorca will receive a
second option exercisable for a period of 30 months from the Closing Date to
acquire a further 12.5% participating interest in Tan Range's rights to the
Itetemia property in exchange for C$5.0 million. The proceeds received by Tan
Range from the exercise of this option shall also be expended on the Itetemia
property under the supervision of the joint management committee.
Minorca will receive a third option exercisable for a period of 24 months
commencing upon the exercise of the second option to purchase a further 25%
participating interest in Tan Range's rights to the Itetemia property. The
purchase price for this option will be satisfied by the funding and completion
of a bankable feasibility study to be completed no later than 18 months from
the date notice is given by Minorca of its intention to exercise the third
option.
During the life of the agreement Minorca would be given the right to
participate for a maximum of 20% in any Tan Range financings larger than
C$1,000,000.
The agreement is subject to a site visit, title verification, the
approval of the Boards of Directors of Minorca and Tan Range, the approval of
the Alberta and Toronto stock exchanges, and to completion of a formal
agreement in a timely fashion.
Tan Range has agreed to pay RBC Dominion Securities Inc. a consulting fee
in consideration of its services in connection with this transaction. The
negotiations with Minorca and RBC Dominion Securities Inc. have been conducted
at arm's length.
TAN RANGE EXPLORATION CORPORATION
''Marek Kreczmer''
MAREK J. KRECZMER, M.Sc., P.Eng.
President and Chief Executive Officer
The Alberta Stock Exchange has neither approved nor disapproved of the
information contained herein.
%SEDAR: 00008194E
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For further information: Investor Relations at 1-800-811-3855
TAN RANGE EXPLORATION CORPORATION has 21 releases in this database.
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