Cerro Resources NL
ASX : CJO
TSX VENTURE : CJO

Cerro Resources NL

February 11, 2011 14:11 ET

Cerro Resources Reports Shareholders Approval of Namiquipa Transaction

LONGUEUIL, QUEBEC--(Marketwire - Feb. 11, 2011) - February 11, 2011. Cerro Resources NL (ASX:CJO)(TSX VENTURE:CJO) ("Cerro" or "Company") is pleased to report that the shareholders of the Company have today approved the acquisition of the Namiquipa Silver Project in Mexico previously announced on December 13, 2010.

The Namiquipa project consists of three concessions totaling 4,400ha. It includes the La Venturosa silver mine, which was the site of underground mining operations for silver, lead and zinc from 1929-1936, 1948-1955 and 1990-2002. The proposed acquisition would give the Company control of the mineralized trend to the north and south of the La Venturosa Mine, where there has only previously been reconnaissance exploration undertaken. Several high priority targets have already been flagged including areas where mining occurred to depths of only 100m and along strike in both directions from the existing mine workings.

Following a recent site visit to Namiquipa by our geologists in Mexico, an initial investigative geological programme has been outlined for commencement in February 2011. This programme is being designed to enable initial drill target locations to be accurately mapped and surveyed. Also, a significant amount of historic data is currently being digitized and assessed. It is expected that drilling could commence in Namiquipa in April 2011.

Completion of the acquisition is subject to satisfaction of a number of pre-conditions, sign-off of due diligence steps and regulatory approvals from the TSX-Venture Exchange.

Results of the meeting including all resolutions put to shareholders are set out in the attached.

About Cerro Resources

Cerro Resources is a precious and base metals exploration and development company. The Company is currently focused on developing the Cerro del Gallo gold/silver project in the central state of Guanajuato, Mexico and maintains an active working focus on the Mt Isa exploration project, Queensland, Australia.

Additional information about the Company is available on the Company's website at www.cerroresources.com and on SEDAR.

Forward-Looking Information

This news release contains certain "forward-looking information" under Canadian securities laws. All statements that address future plans, activities, events or developments that the Company believes, expects or anticipates will or may occur are forward-looking information. Specifically, this news release contains forward looking information about the completion of the proposed acquisition of the Namiquipa project and commencement of a drilling programme. Forward looking information is based upon assumptions by management that are subject to known and unknown risks and uncertainties beyond the Company's control, including risks related to mining exploration and the availability of financing for companies such as the Company. There can be no assurance that outcomes anticipated in the forward looking information will occur, and actual results may differ materially for a variety of reasons. Accordingly, readers should not place undue reliance on forward-looking information. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking information, except as may be required by law.

GENERAL MEETING

Friday, February 11, 2011 at 10:00am

Customs House, 399 Queen Street, Brisbane, Queensland, Australia 4000

The Company advises that all resolutions put to shareholders at today's General Meeting of Members were passed on a show of hands.

A total of 212,331,758 votes were cast by proxy as follows:

    For Against Abstain
Resolution 1 Ratification of the Issue of Shares 211,843,578 478,909 9,271
Resolution 2 Approval of Executive and Staff Option Plan 112,730,357 20,652,133 78,949,268
Resolution 3 Approval to issue New Cerro Shares to Minera Shareholders 162,147,582 838,998 49,345,178
Resolution 4 Namiquipa Transaction 162,146,794 761,786 49,423,178
Resolution 5 Approval of the issue of New Cerro Shares to Norman Seckold 163,548,090 1,239,865 47,543,803

Neither 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 release.

Contact Information

  • Tony McDonald, Managing Director
    Craig McPherson, Chief Financial Officer
    61-7-3252-0122
    or
    For North America, please contact:
    Ms Gerri Paxton, Manager Investor Relations
    514-544-2696
    gpaxton@cerroresources.com