Teras Resources Inc.

Teras Resources Inc.

March 29, 2007 09:01 ET

Teras Signs Option to Acquire Nevada Properties

CALGARY, ALBERTA--(CCNMatthews - March 29, 2007) - Teras Resources Inc. ("Teras") (TSX VENTURE:TRA): Peter Leger, President and Chief Executive Officer of Teras, would like to update its shareholders regarding the recent signing of a 20 year Mining Lease & Option to Purchase Agreement dated March 27th, 2007 (the "Option") to acquire 15 claims covering approximately 315 acres (the "Properties") in the Nye County area of Nevada from Mountain Gold Exploration LLC ("MGE"), a Nevada Limited Liability Company. The Option is subject to approval by the TSX Venture Exchange Inc.

Pursuant to the Option, MGE received $10,000 US, in addition to the reimbursement of Initial Filing and Annual Maintenance fees. Upon regulatory approval, MGE will receive 50,000 Common Shares of Teras. In addition, on the anniversaries of the Effective Date of the Option, Teras is required to make payments of $15,000 US, increasing to $100,000 US on the seventh anniversary and all remaining years thereafter in order to maintain the Option. A minimum $25,000 US work commitment is required to be spent in the first 12 months of the Option, increasing by $25,000 US each year until year 6, when the work commitment reaches $100,000 US per year for all remaining years thereafter. The Option can be exercised, within 6 months after Teras completes a positive, bankable feasibility study and commits to the development of the Properties as a mine, by paying MGE $500,000 US. On exercise of the Option, MGE will receive a 3% Net Smelter Returns Royalty, with Teras having the option to purchase up to 2% of the Royalty for $2,000,000 US.

A minor amount of surface exploration, consisting of prospect pits and surface scrapes or cuts has occurred on the Properties. Only two very shallow drill holes (less than 100 feet) appear to have tested a brecciated fault zone along the sediment and volcanic contact located on the extreme eastern edge of the Properties. To date, MGE has conducted reconnaissance geologic mapping and limited rock chip geochemical sampling. No drill holes have tested the strongest gold anomalies or the permissive pediment target. The goal of Teras is to order the preparation of an NI 43-101 compliant report in order to determine the best method of developing the Properties.

Previous exploration by MGE indicates a broad zone of jasperoids (up to 1,500 feet by +5,000 feet), a "Carlin Type" strata-bound and structurally-controlled, disseminated gold system hosted in the Triassic Luning Carbonate Formation and Sunrise Formation calcareous sediments (Thomas Callicrate, Mountain Gold Exploration, Inc. (MGE) 11-1-06). The Properties represent favourable geologic and geographic environments, and are situated within a broad north-south trending structural zone encompassing an area 15 miles long by +3 miles wide. Widespread jasperoids have developed in Mesozoic carbonates throughout the range, hosting Carlin style alteration and mineralization. However, Teras has not verified this information.

Teras' vision is to acquire properties with established technical merit and which are at or near to the pre-feasibility stage. Teras' exploration work will be focused on detailed diamond drilling programs and, if successful, proving resources with an NI 43-101 compliant resource report.

Dale A. Vitone, B.Sc., P.Eng., is the company's nominated qualified person responsible for monitoring the supervision and quality control of the programs completed on the company's properties. Mr. Vitone has reviewed and verified the technical information contained in this news release.

Teras will continue to update shareholders on the progress of future corporate news, financings, and project developments.

All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Teras Resources Inc.
    Peter Leger
    (403) 852-0644