Forrester Resources Corp.

Forrester Resources Corp.

June 22, 2011 08:42 ET

Forrester Enters Into Joint Venture Agreement to Option Las Princesas Property, Peru

TORONTO, ONTARIO--(Marketwire - June 22, 2011) - Forrester Resources Corp., formerly Erica Resources Inc., is pleased to announce the completion of an Option and Joint Venture Agreement dated January 31, 2011 with Vena Resources Inc. ("Vena") to acquire the Las Princesas and La Reyna Properties ("Reyna Las Princesas" or the "Properties") in Peru. Under the terms of the agreement, Forrester was granted an exclusive right to acquire an initial interest of 51% in the Properties, with an option to earn up to 85%.

Forrester is required to spend US $2,400,000 on the Properties within the first three years to earn the initial 51% interest. Forrester can earn up to 85% by completing a further US $5,000,000 of expenditures in the first six years, including the completion of a feasibility study and bringing the Reyna Las Princesas into commercial production (see website for further details). Vena was also issued 325,500 common shares of the Company, and a cash payment of US $50,000.

In addition, Forrester has completed a Private Placement (the "Private Placement") of Subscription Units (the "Units") for aggregate gross proceeds of $581,000. Forrester issued 5,810,000 Units at a price of $0.10 per Unit with each Unit consisting of one common share of the Company (a "Common Share") and one-quarter of one common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant is exercisable to purchase one Common Share at a price of $0.20 (as defined in the subscription agreement).

The net proceeds of the Private Placement are expected to be used for exploration of the Company's 'Reyna Las Princesas' project in Peru, and for general corporate purposes.

Reyna Las Princesas is wedged between the Quiruvilca silver mine owned by Pan American Silver Corporation and Barrick Gold Corporation's Alto Chicama Gold Mine. The concessions comprise of 1,050 hectares located in La Libertad Department, Santiago de Chuco Province in Perú.


Forrester Resources Corp. is a Toronto-based private company incorporated in the Yukon Territory. It is focused on the exploration and development of precious metals in the Americas. The Company is active in Peru and is continually looking for near-term production opportunities within the Americas. The Company is focused on acquiring privately held high-quality undervalued assets that it believes can be moved quickly into production through additional exploration and successful drilling.

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