Teras Resources Inc.

Teras Resources Inc.

October 08, 2009 13:37 ET

Teras Enters Into Amended Confidentiality and Standstill Agreement

CALGARY, ALBERTA--(Marketwire - Oct. 8, 2009) - Teras Resources Inc. ("Teras" or the "Company") (TSX VENTURE:TRA): Further to a press release dated August 12, 2009, Peter Leger, President and Chief Executive Officer of Teras is pleased to announce that Teras has entered into an amended and restated confidentiality and standstill agreement (the "Restated Standstill Agreement") in order to negotiate a business combination transaction with a company whose interests include a property with historic gold deposits. The consideration paid by Teras for entering the Restated Standstill Agreement was US$275,000 paid by way of a private placement purchase of shares in the common stock of the company at a share price of US$0.15, which was a term of the original standstill agreement dated July 28, 2009 (the "Original Standstill Agreement"). The US$275,000 of shares of the company purchased by Teras is in addition to the US$175,000 of shares in the company that were purchased by Teras pursuant to the Original Standstill Agreement. The Restated Standstill Agreement expires on February 5, 2009. In addition, the Restated Standstill Agreement includes the basic terms that would be included in the formal agreement for the business combination if Teras and the company can reach an agreement prior to the expiry of the standstill. Teras and the company are currently negotiating and working toward completing the formal agreement.

Peter Leger commented: "This standstill is exciting for Teras because it sets the guidelines for an option on a property which has historic gold deposits. Teras is in the process of reviewing historical non-43-101 compliant gold resource data as part of its due diligence process." 

Teras is currently in the process of conducting its due diligence review in respect of the potential business combination. There is no guarantee that a formal agreement will be entered into by Teras and the company or that the proposed business combination will occur as stated or at all.

About Teras

Teras' vision is to acquire and advance properties with established technical merit. The Company's exploration work will be focused on detailed diamond drilling programs with the goal of proving resources with an NI 43-101 compliant resource report.

This press release may contain "forward-looking information" within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein may be forward-looking information. Generally, forward-looking information may be identified by the use of forward-looking terminology such as "plans", " expects" or "does not expect", "proposed", "is expected", "budgets", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases, or by the use of words or phrases which state that certain actions, events or results may, could, would, or might occur or be achieved. This forward-looking information reflects the Company's current beliefs and is based on information currently available to the Company and on assumptions the Company believes are reasonable. These assumptions include, but are not limited to, the actual results of exploration projects being equivalent to or better than estimated results in technical reports or prior exploration results, and future costs and expenses being based on historical costs and expenses, adjusted for inflation. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information. Such risks and other factors may include, but are not limited to: the early stage development of the Company and its projects; general business, economic, competitive, political and social uncertainties; commodity prices; the actual results of current exploration and development or operational activities; competition; changes in project parameters as plans continue to be refined; accidents and other risks inherent in the mining industry; lack of insurance; delay or failure to receive board or regulatory approvals; changes in legislation, including environmental legislation, affecting the Company; timing and availability of external financing on acceptable terms; conclusions of economic evaluations; and lack of qualified, skilled labour or loss of key individuals. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws. 

Neither the 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 of accuracy of this news release.

Contact Information

  • Teras Resources Inc.
    Peter Leger
    (403) 852-0644
    Stirling Investor Relations
    Sam Grier
    (403) 512-6802
    (403) 802-0766 (FAX)