Halo Resources Ltd.
OTC Bulletin Board : HLOSF

Halo Resources Ltd.

September 06, 2007 06:00 ET

Halo Accelerates Sale of Its 50% Interest in Bachelor to Metanor

TORONTO, ONTARIO--(Marketwire - Sept. 6, 2007) - Lynda Bloom, President and CEO of Halo Resources Ltd. (TSX VENTURE:HLO)(OTCBB:HLOSF)(FRANKFURT:HRL), is pleased to announce that Halo Resources Ltd. ("Halo") and Metanor Resources Inc. ("Metanor") have agreed to accelerate Metanor's acquisition of Halo's 50% interest in the Bachelor Lake Property, the Hewfran Property and the MJL-Hansen Property located in Quebec, Canada (collectively, the "Bachelor Property"), together with Halo's 50% participating interest therein, as contemplated by the Purchase Agreement dated April 27, 2006, as amended by Letter of Agreement dated August 17, 2006 and further amended on November 17, 2006 (collectively, the "Amended and Restated Letter of Agreement").

Pursuant to an agreement dated August 22, 2007, Halo and Metanor agreed to settle the two (2) last payments of $500,000, scheduled for August 31st, 2007 and November 30, 2007, totaling $1,000,000, as contemplated in the Amended and Restated Letter of Agreement, in consideration for a cash payment of $800,000 payable on August 31st, 2007 plus 125,000 common shares of Metanor at a price of $0.80 per share, as full and final payment for Halo's 50% interest in the Bachelor Property, together with Halo's 50% participating interest therein. All other terms of the Amended and Restated Letter of Agreement remain in force and effect as previously disclosed by Halo on November 20, 2006, including Metanor entering into a binding net smelter returns royalty agreement with Halo, granting Halo a 1% net smelter returns royalty on all mineral production (in any form whatsoever) from the Bachelor Property.

The parties intend to complete the sale of Halo's interest to Metanor on or before September 19, 2007. This proposal is subject to the approval of the board of directors of each of Halo and Metanor and of the TSX Venture Exchange.

The sale of Bachelor Lake allows Halo to focus its full attention and resources on its ongoing exploration of the Sherridon VMS Property. The Sherridon VMS Property covers an area of over 20,876 hectares and hosts the past-producing Sherridon Mine that was operated by Sherritt Gordon Mines from 1933 to 1950 and produced 7.7 million tonnes of ore grading 2.46% copper and 0.8% zinc. Results from an airborne geophysical survey completed in the summer of 2006 identified an additional 122 targets. The property is located only 70 km northeast of the mining and metallurgical complex in Flin Flon operated by HudBay Minerals Inc. Future development of the property is facilitated by the presence of an all-weather road and railroad access as well as a power line and communications tower.

About Halo Resources Ltd.

Halo is a Canadian-based resource company focused on the acquisition of near production base and precious base metal deposits. Currently the Company owns or has an interest in 3 projects: Duport, which is an advanced stage gold project; Red Lake, which is a gold exploration project, and the Sherridon project that is a combination of mature and grassroots volcanogenic massive sulphide (VMS) copper, zinc and gold exploration opportunities. The Company is operated by an experienced management team and backed by a strong network of mining financiers. The Company's growth strategy is to develop a diversified portfolio of advanced mining projects.

Except for historical statements contained herein, this news release presents "forward looking information" within the meaning of applicable Canadian and United States securities legislation. Forward-looking information includes, but is not limited to, information with respect to future exploration activities. Forward-looking information can frequently be identified by words such as "plans", "expects", "estimates", "forecasts", "intends", "anticipates", or "believes", or the negative thereof, or other similar words and phrases or state that certain actions, events or results "may", "could" or "might" occur or be achieved. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Halo to be materially different from those expressed or implied by such forward-looking information, including but not limited to: risks related to joint venture operations; changes in project parameters; fluctuating metal prices; possible variations in ore reserves, grade or recovery rates; the possibility of project cost overruns or unanticipated costs and expenses; failure of equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry, and delays in obtaining governmental approvals or financing. Although Halo has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Halo does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Halo Resources Ltd.
    Lynda Bloom
    President & CEO
    (416) 368-7045 or Toll Free: 1-866-841-0068
    Email: lbloom@halores.com
    Halo Resources Ltd.
    Marc Cernovitch
    (416) 368-7045 or Toll Free: 1-866-841-0068
    (416) 368-9805 (FAX)