Takara Resources Inc.
TSX VENTURE : TKK

Takara Resources Inc.

July 08, 2008 12:04 ET

Takara Resources Inc. Acquires Potash Interests in Alberta Along Saskatchewan Border

TORONTO, ONTARIO--(Marketwire - July 8, 2008) -

THIS PRESS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWS AGENCIES

Takara Resources Inc. (TSX VENTURE:TKK) ("Takara") announces that it has signed an option with Grizzly Diamonds Ltd (TSX VENTURE:GZD) ("Grizzly") to acquire up to a 70% interest in 50,000 acres prospective for potash, located 250 km east-southeast of Calgary, Alberta in a road-accessible stretch along the Saskatchewan border.

Previous exploration for potash in this region of Alberta was completed in the 1940-1950's. A large portion of the Property is located in close proximity to areas reported to be underlain by potash bearing beds within the uppermost portion of the Prairie Evaporite Formation. The presence of potash beds within the upper portion of the Prairie Evaporite in east-central Alberta near and along the Saskatchewan border is indicated by geological maps produced by the Alberta and Saskatchewan governments. In addition, the Property is located south of a reported occurrence of potash minerals in a deep well (VCO #15) in the Vermilion area of east-central Alberta. The author reporting the occurrence suggests that the potash mineral "sylvite exists in substantial quantities" "throughout the first 50 feet of the Prairie Evaporite" (Golden, B.Sc., 1965) and that the potash minerals "are of the same composition and depositional sequence and depth as the potash at Unity and Saskatoon, Saskatchewan", currently the location of a number of potash mines. The reported occurrence of potash minerals is at a depth of approximately 1,061 m below surface.

Under the terms of the agreement with Grizzly, Takara can earn a 51% in the Property by paying $25,000 cash on signing and issuing 200,000 common shares of Takara upon regulatory approval. Additionally, Takara must incur a total of $2,000,000 in exploration expenditures before September 1, 2009, including one drill hole to test the Prairie Evaporite Horizon.

Takara can thereafter elect to increase its interest in the Property to 70% by carrying Grizzly to a bankable feasibility study on or before September 1, 2011.

Takara has initiated a detailed compilation with Grizzly of all historic exploration, including oil and gas drilling, and seismic data for the permits leading to a National Instrument 43-101 ("NI 43-101") technical report. All field programs are being conducted under the supervision of Michael Dufresne, P. Geol., a principal of APEX Geoscience Ltd. ("APEX") and a Qualified Person under NI 43-101. APEX will be the operator on behalf of Takara.

This news release and the information contained herein has been reviewed by Michael Dufresne, P. Geol., a principal of APEX Geoscience Ltd. and a Qualified Person under NI 43-101.

Certain information contained in this press release, including information and statements which may contain words such as "could", "plans", "should", "anticipates", "expect", "believe", "will", and similar expressions and statements relating to matters that are not historical facts are forward-looking information. All of the forward-looking information contained in this press release is qualified by this cautionary statement. There can be no assurance that the actual results or developments anticipated by Takara, as expressed or implied by the forward-looking information, will be realized or, even if substantially realized, that they will have the expected consequences to or effects on Takara or its business operations. Takara disclaims any intention or obligation to update or revise any forward-looking information as a result of new information or future events. Readers should not place undue reliance on forward-looking information.

THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN. THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.

Contact Information

  • Takara Resources Inc.
    Jennifer L. Boyle
    President
    (647) 430-0966 (work)
    (647) 430-5676 (FAX)
    or
    Takara Resources Inc.
    Pamela Strand
    Chairperson of the board
    (780) 435-0045 (work)