Barrick Just Signed a Deal with TNR for Argentina Concessions:
TNR RESOURCES LTD. January 31, 2000
Telephone: (604) 687-7551 Facsimile: (604) 687-4670
Toll Free: 800-667-4470
Website: tnrvse.com NEWS RELEASE
Trading Symbol: CDNX: TRR
TNR Resources Ltd. ("TNR") is pleased to announce that it has signed a Letter Agreement with Barrick Gold Corporation ("Barrick") that will allow Barrick to earn up to 75% on the Company's Ortiga, El Fierro, Valle del Cura, Las Carachas, La Brea, Ranchillos, Rio Blanco, Peña Negra and Cateo 23 properties ("Northern Properties"). The terms of this Letter Agreement are as follows:
v Barrick will purchase two (2) million shares of TNR at $0.40/share for a total of $800,000, 90% of the proceeds of which are to be used on exploration of the Company's northern properties in Argentina, by December 31, 2000;
v Barrick will have the option to purchase an additional two (2) million shares of TNR at $0.70/share for a total of $1.4 million by January 31, 2001. Ninety percent (90%) of the proceeds would be spent on the projects by December 31, 2001;
v Barrick can elect to spend an additional $1 million on La Ortiga and/or $1 million on any of the other northern projects by December 31, 2002 to earn a 60% interest;
v Upon vesting, Barrick has a one time option to increase its ownership to 75% by opting to fund the properties to a production decision;
v Upon a production decision being made, Barrick will lend TNR production money at competitive rates and be repaid from 90% of TNR's portion of production.
This Letter Agreement between TNR and Barrick has been facilitated by a Termination Agreement into which TNR and Orko Gold Corp. ("Orko") have agreed to enter at this date. The Termination Agreement will include these terms:
v Orko shall issue 200,000 of its shares pursuant to the terms of the October 28, 1998/April 8, 1999 Option Agreement, such shares to be issued not later than February 29, 2000;
v TNR shall pay Orko the sum of C$160,000 as cash consideration for the termination;
v Orko agrees to acquire 750,000 shares in TNR by way of Private Placement at C$0.15 per share;
v Orko will retain a 4% net smelter royalty ("NSR") out of the working interest TNR will retain upon Barrick reaching a production decision with respect to the La Ortiga claims only, such NSR being capped at a total of US$1.5 million, which may also be paid out in full at any time by TNR;
v Upon Barrick reaching a production decision on the La Ortiga claims, TNR shall issue to Orko that number of shares which, when added to Orko's present shareholdings in TNR (384,000 shares), plus the 750,000 shares to be acquired by way of Private Placement, will equal 9.99% of the issued and outstanding share capital of TNR at the date of the production decision by Barrick.
v The 750,000 private placement shares to be acquired by Orko shall be subject to a voting trust, with voting power held by the current Board of Directors of TNR, for a period of five years.
In the event that TNR does not enter into a formal option agreement with Barrick by February 29, 2000, the October 28, 1998/April 8, 1999 Option Agreement (and subsequent amendments) between Orko and TNR will remain in full force and effect.
During the first year of the TNR/Barrick Agreement, exploration expenditures on the nine properties will be at least C$720,000, of which approximately 80% will be directed towards the La Ortiga property. Exploration activities on La Ortiga, expected to commence in early February 2000, will be carried out by Barrick. The 54 sq. km. La Ortiga property is located at the eastern edge of the very prolific El Indio precious metal belt, one of the great mineralized features of the world. It encompasses at least five zones of alteration and anomalous gold, silver + arsenic, antimony, mercury values that occur within a structurally permissive volcanic-hosted environment similar to those present on the nearby, richly mineralized, Veladero (estimated resource: 5.8 million oz. gold, 150 million oz. silver) and Pascua deposits (estimated resource: 21.5 million oz. gold, 525 million oz. silver).
The above agreements are subject to Canadian Venture Exchange and Regulatory approvals.
ON BEHALF OF THE COMPANY,
Gary Schellenberg, President |
