TORONTO, ONTARIO--(Marketwired - March 11, 2014) - Savary Gold Corp. (TSX VENTURE:SCA) ("Savary") and Sarama Resources Ltd. (TSX VENTURE:SWA) ("Sarama") are pleased to announce that they have signed a Heads of Agreement (HoA) in respect of a proposed joint venture arrangement between Sarama and Savary which will unify the operatorship of Savary's 500 square kilometre Houndé South property and Sarama's 250 square kilometre Serakoro 1 property. The proposed JV company will be 65% owned by Savary and 35% owned by Sarama. The combined properties host a 50 kilometre and a 24 kilometre long, mining camp scale, gold-in-soil anomalies, which when tested, have returned numerous gold-bearing intercepts that will require follow-up (see figure). Drilling has commenced at the Karangosso zone where previous intercepts, hosted by a fractured felsic intrusion, returned 10.18 g/t Au over 10.0 metres, 5.77 g/t Au over 8.0 metres and 1.82 g/t Au over 7.0 metres, in two holes (see January 20, 2014 Savary news release).
Don Dudek, President and CEO of Savary commented; "This is a fantastic deal for Savary shareholders. In addition to teaming up with a well respected mine finding team and having access to their in-country operational team, Savary shareholders will now have a majority interest in a property package which essentially doubles the blue sky potential of the Houndé South property in one of the most prospective gold belts in Burkina Faso. Both parties will also gain from cross-marketing opportunities and the reduction of funding risk as the project is moved forward. I am looking forward to working with the Sarama team and receiving the first drill results from the current program in the coming weeks."
The HoA includes the following indicative terms:
- Sarama will contribute its right and interest in its option to acquire the Serakoro 1 permit to the Joint Venture Company, once Savary has earned a 100% interest in its South Houndé permits;
- Savary will contribute its Houndé South permits to the Joint Venture Company once Savary has earned a 100% interest in the property from Endeavour Mining Corporation ("EDV").
- Upon Savary earning its interest in the Houndé South permits and the parties executing final binding documentation, Sarama shall pay its pro-rata share, 35%, of the current, maximum US$1,000,000 exploration program, which will result in Savary completing its remaining earn-in commitments to Endeavour.
- Savary will receive 65% of the shares in the Joint Venture Company and Sarama will receive 35% of the shares in the Joint Venture Company.
The proposed joint venture arrangement remains subject to various conditions, including without limitation, satisfactory due diligence, formal binding documentation and regulatory approval.
About Savary Gold
Savary Gold is a Canadian exploration company focused on exploring the Houndé South Gold Property in Burkina Faso. The property is in the Birimian age Houndé Greenstone Belt, which hosts Semafo's Mana mine and additional gold deposits that are presently subject to extensive exploration efforts (including Endeavour Mining's Houndé Project, Roxgold's Yaramoko Project and Sarama's South Houndé Project, which is adjacent to Savary Gold's property). For additional information please visit our website at www.savarygold.com and follow us on Facebook, Linked-In and Twitter: @SavaryGold.
Don Dudek, P.Geo., President and CEO of the Company and a qualified person under National Instrument 43-101, has reviewed and approved the scientific and technical information in this press release.
SAVARY GOLD CORP.
On behalf of the Board
Don Dudek, President & Chief Executive Officer
Neither 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.
This news release may contain forward-looking statements. These statements include statements regarding the proposed terms for the joint venture, the likelihood of executing formal documentation and forming joint venture as scheduled or at all and the receipt of all necessary approvals. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors discussed in the management discussion and analysis section of our interim and most recent annual financial statements or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulations. We do not assume any obligation to update any forward-looking statements, except as required by applicable laws.
To view the figure associated with this release, please visit the following link: http://media3.marketwire.com/docs/932437i.pdf