Terra Firma Signs MOU for Gold and Copper Property in South Sulawesi, Indonesia
April 19 2011 - 8:18AM
Marketwired
Terra Firma Resources Inc. (TSX VENTURE: TFR) ("Terra Firma" or
"the Company") is pleased to announce that the Company, through its
wholly owned Indonesian subsidiary, PT. Terra Mineral Resources
Indonesia, has entered into an memorandum of understanding ("MOU")
with Pt. Mutiara Surya Mallawa ("Mutiara") and TirtaWinata
("Tirta"), under which the Company has the option to acquire 75% of
the issued and outstanding shares of Mutiara. Mutiara is an
Indonesian mineral exploration company that holds a mineral
exploration license in respect of an initial 800 hectare property
in South Sulawesi, Indonesia (the "Mallawa Property") which is
prospective for Gold and Copper. In addition, Mutiara is expected
to acquire an additional 10,000 hectares of prospective lands (the
"Additional Properties") located within the 25 kilometre radius
"area of interest" defined in the MOU.
In exchange for Mutiara and Tirta entering into the MOU, Terra
Firma is required to pay an aggregate of US$100,000 to the
shareholders of Mutiara, US$25,000 of which was paid on execution
of the MOU and US$75,000 of which is payable within 60 days
following the later of the date on which the MOU is approved by the
TSX Venture Exchange and a NI43-101 report on the Mallawa Property
is completed. The MOU contemplates that, following approval of the
MOU by the TSX Venture Exchange, the parties will enter into an
option agreement (the "Option Agreement") granting Terra Firma an
option to acquire 75% of the issued and outstanding shares of
Mutiara. Terra Firma is required to pay an additional US$100,000
and issue 100,000 common shares to Mutiara's shareholders on
execution of the Option Agreement.
Under the Option Agreement, to successfully exercise the option
to acquire 75% of the outstanding shares of Mutiara, Terra Firma
will be required to: (1) pay an additional US$200,000 to Mutiara's
shareholders within 18 months of the approval of the MOU by the TSX
Venture Exchange; (2) issue a further 200,000 common shares to
Mutiara's shareholders on the later of the date on which Terra
Firma exercises the option and the date which is 120 days following
execution of the Option Agreement; (3) issue a further 200,000
common shares to Mutiara's shareholders on thelater of the date on
which Terra Firma exercises the option and the date which is 18
months following execution of the Option Agreement; and (4) fund
US$1.75 million in exploration expenditures on the Mallawa Property
and the Additional Properties, including at least US$250,000 in
expenditures in the first year of the Option Agreement.
As part of the transaction, Terra Firma will pay a finder's fee
of US$32,000 and 40,000 common shares, representing 8% of the cash
payable and shares issuable by Terra Firma under the MOU and Option
Agreement.
The entering into of the MOU and the Option Agreement and the
payments of cash (other than the initial US$25,000 payment) and
issuances of shares thereunder are subject to the approval of the
TSX Venture Exchange. All shares issuable under the transaction
will be subject to a four month hold period.
Brian Buchanan, CEO of Terra Firma said, "We are excited to
start our NI43-101 exploration program on this prospective Gold and
Copper property acquisition, because of its geological potential
and its proximity to good infrastructure. This property fits well
into our plan to develop a balanced portfolio of properties through
a combination of grassroots prospecting, property acquisitions and
the formation of strategic relationships in Java, Sumatra and
Sulawesi Indonesia."
Terra Firma also announces that it has provided notice to the
company that optioned the Restigouche Property in Quebec to Terra
Firma, that Terra Firma has decided to withdraw from its property
option agreement respecting the property and give up its interest
in the property. Pursuant to the terms of the property option
agreement, the claims comprising the Restigouche Property will
revert to the optionee.
About Terra Firma Resources
Terra Firma is a mineral exploration company headquartered in
Vancouver, BC, Canada. The Company's objective is to develop a
balanced portfolio of properties through a combination of
grassroots prospecting, property acquisitions and the formation of
strategic relationships. The Company is currently investigating a
number of potential prospects in Java, Sumatra and Sulawesi
Indonesia.
If you are not currently on the Terra Firma updates list, please
send in your email address to info@terrafirmaresources.com. The
Company will send out regular updates and news releases to everyone
who asks to be on the list. For further information about the
Company visit the website at www.terrafirmaresources.com or SEDAR
at www.sedar.com or Jamie Hyland, Tribeca Capital Partners Inc. at
(604) 998-4730.
ON BEHALF OF THE BOARD
Brian Buchanan
Chief Executive Officer and Director
This Company Press Release contains certain "forward-looking"
statements and information relating to the Company that are based
on the beliefs of the Company's management as well as assumptions
made by and information currently available to the Company's
management. Such statements reflect the current risks,
uncertainties and assumptions related to certain factors including,
without limitations, competitive factors, general economic
conditions, customer relations, relationships with vendors and
strategic partners, the interest rate environment, governmental
regulation and supervision, seasonality, technological change,
changes in industry practices, and one-time events. Should any one
or more of these risks or uncertainties materialize, or should any
underlying assumptions prove incorrect, actual results may vary
materially from those described herein.
Neither the TSX Venture Exchange nor its 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 news release.
Contacts: Terra Firma Resources Inc. Brian Buchanan CEO and
Director (604) 681-5566 (O) (604) 683-1055 (FAX)
buchanan@terrafirmaresources.com www.terrafirmaresources.com
Tribeca Capital Partners Inc. Jamie Hyland (778) 938-8760 © (604)
756-2995 (FAX) jamie@tribecacap.com www.tribecacap.com
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