San Anton Capital Inc.
TSX VENTURE : TON.P

May 20, 2009 18:41 ET

San Anton Capital Inc. Announces Proposed Qualifying Transaction With Chevalier Resources Inc.

MONTREAL, QUEBEC--(Marketwire - May 20, 2009) - San Anton Capital Inc. ("SAN ANTON") (TSX VENTURE:TON.P) is pleased to announce that on May 20, 2009 it has signed a Letter of Intent (the "Letter of Intent") with Chevalier Resources Inc. ("CHEVALIER"), an arm's length party, for the potential acquisition of all the issued and outstanding shares of CHEVALIER whether directly or by way of other arrangement (a "Business Combination") such Business Combination to constitute the Qualifying Transaction, as defined in the Policy 2.4 of the TSXV, of SAN ANTON (the "QT").

About Chevalier Resources Inc.

CHEVALIER is a Canadian private mineral exploration and development company involved in base metal projects in the Katanga Province of the Democratic Republic of Congo ("DRC"). CHEVALIER holds 57% of the shares of Luisha Mining Enterprises Sprl., a DRC company, which owns a 100% interest in the Luisha Permit, (the "Luisha Property"), including an open pit which was mined for high grade copper in the 1940s and waste piles. The Luisha Property covers an area of 16.2 km2 underlain by Roan Group sediments, which host most of the large and high grade copper-cobalt deposits in the Central African Copper belt of Zambia and the DRC. CHEVALIER's objective is to identify copper-cobalt mineralization of economic interest on the Luisha Property through a comprehensive exploration program. A NI-43-101 compliant report on the Luisha Property has been prepared on behalf of Chevalier by Strathcona Mineral Services Limited and will be made available on SEDAR in due course.

CHEVALIER also holds a 60% interest in the Busanga Tin Project (the "Busanga Project"). Located about 160 km to the north of the mining town of Kolwezi, the Busanga Project covers 74 km2 of prospective geology for high grade alluvial and hard rock tin mineralization. Alluvial mining in the early 20th Century extracted significant quantities of cassiterite (SnO2) from the alluvial terraces of the Lualaba River, a major waterway that crosses the Busanga Project.

As part of the QT, San Anton and Chevalier propose to complete a private placement of Units for a minimum of $3 Million. Each Unit will be sold at a price of $0.25 and will be comprised of one common share of San Anton and one half of a common share purchase warrant. Each whole warrant will entitle the holder to subscribe to one common share at a price of $0.40 for a period of one year. The proceeds of the private placement will be kept in trust until the closing of the QT.

Management

The current members of the management of CHEVALIER and their brief biographies are as follows:

Steve Saviuk C.A., Chairman, is the president of Manitex Capital Inc a venture capital firm which specializes in acquiring interests in emerging and established companies and actively participates in building shareholder value.

Sebastien Plouffe, President and Chief Executive Officer, graduated in 1994 with a bachelor's degree in Business Administration (B.A.A.) from the Ecole des Hautes Etudes Commerciales (H.E.C. Montreal). Mr. Plouffe has 15 years of experience in the financial industry, notably, from 1995 to 2003, as an Investment Adviser for various Canadian brokerage firms such as Nesbitt Burns and Canaccord Capital. Since 2003, he worked as a financial consultant for small to mid-cap companies by financing their projects and advising them on business and financial strategy, mainly in the mining industry. In 2006, Mr. Plouffe launched Sediamek Inc., a Merger & Acquisitions firm which specialized in developing, managing, structuring and financing different projects and organizations. Through the years, Mr. Plouffe has developed extensive experience and contacts in business and finance, in North America, Europe and especially in Africa, by entering into strategic partnerships.

Claude Dufresne,ing., Director, graduated with a Bachelors degree in Mining Engineering from Laval University in 1991. Following his graduation, Mr. Dufresne started working with Cambior as a metallurgist. In 1996, he was transferred to Cambior's largest operation, Omai Gold Mines Ltd., located in Guyana, S.A. After Cambior's acquisition by Iamgold Corp, Mr. Dufresne collaborated with Iamgold's Corporate Development group while continuing with its Sales & Marketing activities. In January 2008, Mr. Dufresne started Camet Metallurgy Inc, a joint venture company with Iamgold, which is responsible for the worldwide Sales and Marketing of Iamgold's niobium from the Niobec mine. Mr Dufresne is a member of the Ordre des Ingenieurs du Quebec, and of the Tantalum & Niobium International Study Center (TIC).

Simeon Tshisangama, Director, is currently Chairman and Chief Executive Officer of TSM Enterprise sprl ("TSM"), a reputable Congolese company with vast experience in small scale mining operations, especially with base metals, notably copper, cobalt and tin. Mr. Tshisangama has developed business relations with large international companies for mining projects in DRC in which his company TSM Enterprise sprl. ("TSM") has an interest. TSM is specialized in the processing of metallic ores into semi-finish products that are marketed worldwide. TSM is Chevalier's partner and holds the remaining equity in the Luisha Property and the Busanga Project. Mr Tshisangama lives in Lubumbashi in the DRC.

Apollinaire Ihaza, Director, is currently the Program Manager for Africa of the Canadian Executive Service Organization (CESO), a non-profitable organization that helps to build proud independent communities over the world. Mr. Ihaza completed a Master in Economy in the University of Kinshasa and obtained a diploma in International Corporation in the University Libre Bruxelles.

A more comprehensive news release describing the details of the transaction and complying with the requirements of Policy 2.4 of the TSXV will be forthcoming.

Mr. Benoit Violette Geol. a qualified person within the meaning of NI 43-101, has reviewed and approved the technical content of this press release on behalf of Chevalier.

Trading of SAN ANTON Shares will remain halted for now.

Completion of the QT is subject to a number of conditions, including but not limited to, the completion by SAN ANTON of a private placement to be closed concurrently with the QT, approval of the QT by the shareholders of CHEVALIER, satisfactory due diligence investigations, regulatory approvals and the completion of a definitive business combination agreement. In addition, no adverse change in the affairs of CHEVALIER shall have occurred prior to the closing of the QT. The QT may not close until the required regulatory approvals are obtained and the financing is completed. There can be no assurance that the QT will be completed as proposed or at all. Investors are cautioned that any information released or received with respect to the QT may not be accurate or complete and should not be relied upon. Trading in the securities of a capital pool company should be considered highly speculative.

In the interests of providing shareholders and potential investors with information regarding CHEVALIER, including CHEVALIER's assessment of its and its subsidiaries' future plans and operations, certain statements included in this press release may constitute forward-looking information or forward-looking statements (collectively, "forward-looking statements"). All statements contained herein that are not clearly historical in nature are forward-looking, and the words "anticipate", "believe", "expect", "estimate" and similar expressions are generally intended to identify forward-looking statements. Such statements represent the CHEVALIER's internal projections, estimates or beliefs. These statements are only predictions. Actual events or results may differ materially. Although CHEVALIER believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievement since such expectations are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause CHEVALIER's actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, CHEVALIER and the foregoing list of important factors is not exhaustive. These forward-looking statements are made as of the date hereof and CHEVALIER disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise.

The TSX Venture Exchange Inc. has neither approved nor disapproved the contents of this press release.

Contact Information

  • San Anton Capital Inc.
    Mr. Jacques L'Africain, President
    905-219-3105
    or
    Chevalier Resources Inc.
    Mr. Sebastien Plouffe, President
    514-390-2300