Mazorro Resources Inc.

Mazorro Resources Inc.

October 26, 2009 12:13 ET

Mazorro Resources Announces Private Placement Offering and Termination of Mexican Property Option Agreements

OTTAWA, ONTARIO--(Marketwire - Oct. 26, 2009) - Mazorro Resources Inc. ("Mazorro" or the "Company") (TSX VENTURE:MZO) (FRANKFURT:JAM) announces that it intends to raise up to a maximum of $300,000 by way of a non-brokered private placement of units.

Each unit will consist of one common share and one common share purchase warrant (the "Units"). Each Unit will be offered at a price of $0.075 per Unit. The warrants will be exercisable for a period of two year from the closing of the offering at a price of $0.10 per common share. The warrants will be callable by the Company on the 30th calendar day following notice that the Company's common shares have traded on the Toronto Venture Exchange at or equal to $0.25 per share for a period of 10 consecutive trading days after the expiry of applicable hold periods.

This offering would give rise to the issuance of a maximum of 4,000,000 units. All securities issued in the offering will be subject to a four month hold period from the closing date of the offering. Completion of this Offering is subject to TSX Venture Exchange acceptance.

The funds raised pursuant to the offering will be used to fund general working capital requirements and for potential new resource property acquisitions.

Mazorro also announces that effective October 23, 2009, the Company has terminated its option agreements for both the Cimarron and LaVerdosa / Los Arrayanes projects in Sinaloa State, Mexico. No additional cash or share payments will be made under those agreements with ownership being retained by the optionors. The Company is presently evaluating other resource property alternatives.

Mazorro presently has approximately 17.5 million common shares outstanding.

Some statements in this release may contain forward-looking information. These statements include, but are not limited to, statements with respect to future exploration, development and production activities and future expenditures. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, among others, the time and success of future exploration, development and production activities and the timing and amount of expenditures.

Neither the TSX Venture Exchange or 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 release.

Contact Information

  • Mazorro Resources Inc.
    Andre Audet
    Interim President & CEO