OAKVILLE, ON--(Marketwire - Mar 4, 2013) - Sarissa Resources Inc. (PINKSHEETS: SRSR) ("Sarissa"), through its wholly-owned subsidiary Nio-Star Corp. ("Nio-Star") is pleased to release this update on the previously announced Letter of Intent ("LOI") signed in the summer of 2012.
At that time Nio-Star entered into an LOI to form a Joint Venture company (the "JV") with a Chinese State Owned Enterprise Company ("SOE") operating in the mining sector.
Under the LOI, the SOE paid a fee in order to secure an exclusivity period in which to get required government approvals, complete metallurgical testing, and negotiate the final JV agreement. This exclusivity period originally ran until October 31, 2012, and was subsequently extended until February 28, 2013.
In order to advance the project during this exclusive period a sample of approximately 900 kgs of rock from the adit area of the D Zone of the Nemegosenda project was collected and shipped to China for metallurgical and beneficiation testing at the Changsha Research Institute of Mining & Metallurgy, at the SOE's expense. The testing program was originally targeted to be completed over approximately 3 months, but has not yet been finalized. This program would likely have been more difficult to accomplish in North America, as the testing facilities would initially have had to be assembled to complete it.
While the testing process continues in China, the exclusivity period has now elapsed and Nio-Star and Sarissa have elected not to extend it. This allows Nio-Star and Sarissa to pursue other financing and development sources that have approached them, but with which they could not pursue discussions as a result of the exclusivity period that had been granted. While the original Chinese SOE no longer has an exclusive arrangement, a good working relationship was developed, and Sarissa and Nio-Star remain interested in working toward a JV with this group. Also, should Sarissa and Nio-Star reach an agreement with a different party to fund the exploration and development of its Nemegosenda property, Nio-Star has discussed purchasing the SOE's testing results.
This press release contains statements, which may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of Sarissa Resources Inc. and Nio-Star Corp., as well as members of their respective management, in addition to the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-statements include fluctuation of operating results, the ability to compete successfully and the ability to complete before-mentioned transactions. Neither Sarissa nor Nio-Star undertakes any obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.
About Sarissa Resources Inc.
Sarissa Resources Inc. is a junior exploration company with interests in properties in Northern Ontario, Canada. Sarissa and Nio-Star are specifically focused on the development of the Nemegosenda niobium project as well as the Shining Tree Resources Corp. gold project.