VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 11, 2012) - New World Resource Corp. ("New World" or the "Company") (TSX VENTURE:NW)(FRANKFURT:NWU) announces that it has closed its previously announced amendment to the option agreement (the "Amended Agreement") with Empresa Minera Marte S.R.L. ("MARTE"). Pursuant to the Amended Agreement, MARTE has been granted an option to acquire 37.4% of the Company's 75% interest in the Lipeña copper-gold project in southern Bolivia.
At closing, the Company received US$500,000 from MARTE, representing a partial payment towards earning 17.4% interest. Pursuant to the terms of the Amended Agreement, MARTE must pay an additional US$250,000 on or before December 25, 2012 to earn the initial 17.4%. To earn the remaining 20%, MARTE must spend US$1,250,000 in mineral exploration expenditures on the Lipeña copper-gold project over the next 12 months.
Completion of this transaction will result in MARTE holding 62.4% of the project and New World will hold 37.6%.
Luis Mercado, an officer of MARTE, is a director and the largest shareholder of New World. The Amended Agreement constituted a related party transaction pursuant to Policy 5.9 of the TSX Venture Exchange and Multilateral Instrument 61-101 - Protection of Minority Securities Holders in Special Transactions ("MI 61-101"). The Amended Agreement was exempt from the formal valuation and minority shareholder approval requirements pursuant to Part 5 of MI 61-101 by virtue of the financial hardship exemption set forth in Sections 5.5(g) and 5.7(e) of MI 61-101, respectively. The terms of the Amended Agreement were negotiated by the independent directors of the Company, and Mr. Mercado declared his interest in the transaction and abstained from voting on it.
New World Resources CEO, John Lando commented, "With the closing of the Agreement, New World is focused on evaluating possible projects in mining friendly jurisdictions while our Lipeña copper-gold project benefits from the US$1.25 million exploration program that will be completed by our partner, MARTE."
About New World
New World Resource Corp. is a Canadian based exploration company focused on building a strong, diversified project portfolio within the Americas. The Company's projects include the Lipeña/Bonete copper-gold project and the Pastos Grandes lithium brine project in Bolivia.
NEW WORLD RESOURCE CORP.
John Lando, President
This news release includes "forward-looking information", as such term is defined in applicable securities laws. The forward-looking information includes, without limitation, statements regarding the completion of Marte's obligations under the Amended Agreement and the Company's evaluation of new projects. This forward-looking information is given as of the date of this news release. Users of forward-looking information are cautioned that actual results may vary from the forward-looking information contained herein. While the Company has based this forward-looking information on its expectations about future events as at the date that such information was prepared, the information is not a guarantee of the Company's future performance and is subject to risks, uncertainties, assumptions and other factors which could cause actual results to differ materially from future results expressed or implied by such forward-looking information. Such factors and assumptions include, amongst others, the effects of general economic conditions, the price of lithium, changing foreign exchange rates and actions by government authorities, uncertainties associated with legal proceedings and negotiations and misjudgments in the course of preparing forward-looking information. In addition, there are also known and unknown risk factors which could cause the Company's actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by the forward-looking information. Known risk factors include, among others, risks relating to exploration and development; the ability of the Company to obtain additional financing; the Company's limited operating history; the need to comply with environmental and governmental regulations; political and economic instability and general civil unrest in Bolivia; potential defects in title to the properties; fluctuations in currency exchange rates; fluctuating prices of commodities; operating hazards and risks; competition; and other risks and uncertainties. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company is under no obligation to update or alter any forward-looking information except as required under applicable securities laws.
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.