TSX-V Trading Symbol: HRC
VANCOUVER, Feb. 18, 2016 /CNW/ - Helio Resource Corp (TSX-V:
HRC), ("Helio" or the "Company") is pleased to report that it has
reached agreement with Damara Gold (TSX-V: DMR) ('Damara") whereby
the earn-in agreement between Damara and Helio will be cancelled,
and Helio and Damara will transfer their respective interests in
two Namibian exploration licences, through wholly owned
subsidiaries, namely EPL 3738 (Wilhelmstal) and EPL 3739
(Otjimbojo) (together the "Property"), into Osino Resources Corp.
("Osino"), a privately-held British
Columbia corporation in return for shares in Osino.
Background
On March 27, 2014 Helio announced
an agreement with Damara (formerly Solomon Resources) whereby
Damara had the option to earn up to a 60% interest in the Property.
To date Damara has spent $300,000 on
the projects and issued 500,000 common shares to Helio as part of
the earn-in.
Under the terms of the arms-length agreement between Osino,
Damara and the Company, Helio will transfer the shares of its
wholly owned subsidiary holding the Property to Osino and Damara
will forgo its rights under the earn-in agreement with Helio for an
interest in Osino. Osino currently owns 4 Namibian exploration
licences, all of which will remain in Osino.
Post consolidation Helio will own 60.5% of the shares of Osino,
and Damara will own 22% of the shares of Osino. Each party will
appoint 2 directors to the Board of Osino.
Closing of the transaction is subject to a number of conditions
including Osino concluding a financing on terms acceptable to Helio
and Damara; applicable regulatory approvals and completion by Osino
of its due diligence investigations regarding each of Helio, Damara
and Helio's Namibian Licences.
Richard Williams, CEO of Helio
commented "We believe this transaction represents the best
opportunity for our Otjitombo and Wilhelmstal projects to advance
quickly under difficult market conditions. Our Company's focus
has been, and continues to be, the development of the SMP Gold
Project in Tanzania. The initial plan is for Osino to remain a
private company with a focus on spending any money raised in the
ground, and only returning to the public markets when conditions
are supportive".
About Helio Resource Corp.
Helio Resource Corp. is a resource company focused on advancing
the 100% owned SMP Gold Project in Tanzania to a production decision, and
outlining the resource potential at the DGP Gold Project in
Namibia.
For additional information please contact Richard Williams at 604 638 8005.
ON BEHALF OF THE
BOARD OF DIRECTORS
|
|
"Richard D.
Williams"
|
"Chris
MacKenzie"
|
Richard D. Williams,
P.Geo
|
Christopher J.
MacKenzie, C.Geol.
|
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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.
SOURCE Helio Resource Corp.