SOURCE: Tombstone Exploration
PHOENIX, AZ--(Marketwired - Dec 10, 2013) - Tombstone Exploration Corporation (OTCQB: TMBXF) (BERLIN: UDNA), announced today a strategic Corporate and Financing Investment that will include the acquisition of a 26% interest in EuroGas AG of Zurich, Switzerland, an international Natural Resources Holding Company with European assets in industrial minerals, oil and gas interests as well as base metal and precious metal assets located in the USA.
Under the Strategic Corporate Investment in EuroGas AG, TMBXF will also receive from EuroGas Inc. a committed financing in the amount of $5 million USD for extensively drilling its wholly owned USA porphyry copper-gold project in Arizona, USA. A previous airborne survey completed in 2011 by Toronto Canada based Geotech Ltd., indicated the geological presence of a potential deep seated copper porphyry orebody similar to other large producing copper-porphyry ore deposits throughout Arizona.
EuroGas Inc., a US Company, has a longstanding corporate relationship with TMBXF and was owning until now approximately 9% of the capital of TMBXF, as well as owning itself a large block of prolific mining claims adjacent to the Tombstone Mining Claim block in the Tombstone Mining District in Arizona. In the mid 1970s, ASARCO, a major US mining Company, made a deep seated significant low grade copper discovery on EuroGas' mining claims at "Robbers Roost" which had led to the past and present cooperation between TMBXF and EuroGas Inc.
EuroGas Inc. is also the controlling shareholder of EuroGas AG of Zurich, Switzerland and currently owns 70.17 percent of the fully issued and outstanding 925 million EuroGas AG shares, out of which it will now exchange 240 million EuroGas AG shares, representing 26 percent of EuroGas AG's capital in exchange for 348 million shares of TMBXF, together with a financing commitment by EuroGas to provide Tombstone Exploration Corporation with working capital of $5 million. EuroGas AG's last Audited Financial Statements show Total Assets of approximately CHF 145 Mill. (approximately $155 million) with very little Liabilities.
The major asset of the EuroGas Group is its legal claim to the huge industrial minerals soapstone (talc) ore deposit in the Slovak Republic, which ranks amongst the largest and purest of its kind in the world. The Gemerska Poloma deposit was illegally expropriated under dubious circumstances by the Slovak Republic's Government in late 2004 and deprived EuroGas' 90% owned Slovakian subsidiary Rozmin s.r.o. of its lawful right to place the deposit into production. Despite three non-appealable Final Judgments by the Highest Court of the Slovak Republic in favor of Rozmin, the Ministry of Economy's Mining Administration Office of the Slovak Republic has not returned yet the huge Gemerska Poloma mine to its rightful and legal owner Rozmin s.r.o. The Slovak Republic has recently published that the Gemerska Poloma orebody contains in excess of 140 Mill. tons of mineable reserves. Independent Slovak Government Geologists have put a value of more than $ 1.5 billion on the proven and probable reserves of only the Western part of the deposit.
Two years ago, EuroGas Inc.'s solicitors officially informed the President of the Slovak Republic of EuroGas' intent to file damage charges against the Slovak Republic and provided the Slovak Republic with the formal "Intent to Arbitrate" seeking damages in the amount of $1.65 billion as published in EuroGas' Press Releases. EuroGas is currently in the process to proceed shortly with International Arbitration (ICSID) against the Slovak Republic within the scope of the Investor Protection Program provided by a Bilateral Investment Treaty (BIT) between the United States of America and the Slovak Republic in front of an independent Tribunal of the World Bank in Washington D.C.
Wolfgang Rauball, Chairman & CEO of EuroGas Inc. and EuroGas AG stated:
"The new Strategic Corporate Agreement between EuroGas Inc. and its 70.2 percent controlled Swiss subsidiary EuroGas AG and Tombstone Exploration Corporation will result in a very strong Corporate Alliance between our Corporations and will strongly enable our common search for a deep seated copper-porphyry deposit as indicated by previous operators, like ASARCO, as well as also indicated by the interest of our claim neighbor in the Tombstone Mining District, Phoenix, Arizona based Freeport McMoran, the largest publicly trading copper-gold producer in the world.
"We are very happy to be able now to develop this exciting copper-gold-silver mining project of TMBXF after EuroGas' own corporate reorganization process in Europe has been successfully finalized, and after the extensive and time-consuming legal preparations of our Paris, France based solicitors regarding our huge damage lawsuit against the Slovak Republic for the illegal 2004 expropriation of our lawful mining rights to our world-class Gemerska Poloma soapstone (talc) deposit are finalized and the commencement of the Arbitration procedures against the Slovak Republic is now well on its way."
Alan Brown, President of TMBXF stated:
"This transaction creates a premier USA-European resource partnership with a substantial European holding company with its portfolio of precious metals, industrial minerals and oil and gas assets."
TMBXF's immediate focus will be executing a drill program on its wholly owned gold targets on the Zebra Property along with updating the plan for the major porphyr targets identified via Geotech Ltd., ZTEM report released in 2011. Of the targets that have been identified, two have precious metal (Gold and Silver) occurrences as "halos" around the properties, which are significant characteristics of porphyry systems. One of these identified structures has been compared by Geotech Ltd. to the Mt. Milligan deposit. These extensive drill programs are to prove a mineable ore body that has been overlooked for generations.
A more detailed report on the assets of EuroGas AG and the start of TMBXF's 2014 Exploration and Development work program will be forthcoming.
Statements contained herein that are not historical facts may be forward-looking statements within the meaning of the Securities Act of 1933, as amended. Forward-looking statements include statements regarding the intent, belief or current expectations of the Company and its management. Such statements are estimates only, as the Company has not completed the preparation of its financial statements for those periods, nor has its auditor completed the audit of those results. Actual revenue may differ materially from those anticipated in this press release. Such statements reflect management's current views, are based on certain assumptions and involve risks and uncertainties. Actual results, events, or performance may differ materially from the above forward-looking statements due to a number of important factors, and will be dependent upon a variety of factors, including, but not limited to Tombstone Exploration Corporation's ability to obtain additional financing. Tombstone Exploration Corporation undertakes no obligation to publicly update these forward-looking statements to reflect events or circumstances that occur after the date hereof or to reflect any change in Tombstone Exploration Corporation's expectations with regard to these forward-looking statements or the occurrence of unanticipated events. Factors that may impact Tombstone Exploration Corporation's success are more fully disclosed in Tombstone Exploration Corporation's most recent public filings with the U.S. Securities and Exchange Commission.