Pan Terra Industries Inc.
TSX VENTURE : PNT

Pan Terra Industries Inc.

May 30, 2011 09:29 ET

Pan Terra Industries to Acquire 90% of Mertens High Grade Copper Mine

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 30, 2011) - Mitchell Adam, President and CEO of Pan Terra Industries Inc. (TSX VENTURE:PNT) ("Pan Terra" or the "Company") is pleased to announce it has entered into a Letter of Intent (the "LOI") to acquire 90% of the issued and outstanding common shares of Mertens Mining and Trading (PTY) Limited ("Mertens"), a private company incorporated under the laws of Namibia, Africa.

Mertens

Mertens is a well established Namibian copper production and development company complete with proven management (see, Pan Terra Industries news release dated May 19, 2011), compliant black empowerment participation and operations based in Tsumeb, Namibia.

Mertens holds 100% interest in Namibian Mining Licence 67633 (the "Mertens Mine"), a fully equipped mine including ore treatment capacity of 10 Mt per hour mineral floatation and 5 Mt per hour through gravity separation.

Mertens also holds a 52% ownership in Namibian Exclusive Prospecting Licence 3034 representing the highly prospective exploration ground surrounding the Mertens Mine

Mitchell Adam, President of Pan Terra stated "this represents our second significant acquisition announcement for the Company in Africa this month. It is our expectation that Mertens copper production will fund Namibian operations including exploration expenses on our projects."

Mertens LOI

Pursuant to the terms and conditions of the LOI, Pan Terra will acquire 90% of the issued and outstanding shares of Mertens for total consideration of $6,617,647 CDN, issuance of 2 million common shares in the capital of the Company and the issuance of 2 million share purchase warrants priced at $0.78 CDN and exercisable for a period of 24 months from closing of the proposed Transaction (the "Transaction"). The Transaction is subject to a finder's fee payable in accordance with TSXV policies.

Completion of the Transaction is subject to a number of conditions, including but not limited to TSXV acceptance, director approvals, the completion of satisfactory due diligence by Pan Terra, the negotiation and execution of definitive documentation, and other conditions contained in the LOI. It is expected that a definitive agreement will be executed on or before July 15, 2011.

The TSXV has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.

This news release contains forward-looking statements regarding the future success of the business of the Company that is subject to risk and uncertainties. Examples of such forward- looking statements including, but are not limited to, statements concerning the Company's acquisition of the interest in the Mertens, expectations concerning the timing and success of exploration activities generally, government regulation of exploration and mining operations, indications and benefits of exploration, drilling test work and engineering assessments, environmental risks, tile disputes or claims, and the Company's intention to raise additional capital and financing. These forward-looking statements involve known and unknown risk and uncertainties that may cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied in these forward-looking statements. These risks include risks related to dependence on key personnel, competition, risks related to newly acquired businesses, uncertainty and dilution of additional financing and ability to service debt, as well as the risk factors described in the Company's Management Discussion and Analysis filed on SEDAR at www.sedar.com, and the risks to be described in any Management Information Circular. The forward-looking statements contained herein are made as of the date of this news release and are expressly qualified in their entirety by this cautionary statement. Except as required by law, the Company undertakes no obligation to publicly update or revise any such forward- looking statements to reflect any change in its expectations or in events, conditions or circumstances on which any such forward-looking statements may be based, or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements.

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

  • Pan Terra Industries Inc.
    Mr. Mitchell Adam
    President
    (604) 678-5308
    mitch@mgacapital.net

    Pan Terra Industries Inc.
    1011 West Cordova Street Suite 4006
    Vancouver, British Columbia V6C 0B2