RiverRun Option’s Properties in Peru’s Gold Sands Mining District
RiverRun Resources Inc. (PINK SHEETS: RRRO) announces that the company has entered into a Mineral Right Option Agreement in Peru, South America.
RiverRun President, Mr. Jose Lenzi stated, “We are extremely optimistic about the opportunity we have now in front of us to be part of the development of the promising new gold district in Northeastern, Peru known as the Amazon Gold Sands. By utilizing new technology and mining methods, we hope to be a significant part of, what appears to be, a rapidly advancing region of immense promise.”
Mr. Lenzi continued, “For millions of years gold has been carved and transported from the gold-rich mountains of Peru and Ecuador by two large water couriers – the Maranon and the Santiago rivers. These two rivers converge into one just above the Manseriche gorge. It is on the other side of that gorge where we have acquired options on properties very close to the spigot itself. And we believe that since the river slows significantly on the other side of the gorge, it makes sense that the heavier nuggets should have settled closer to the spigot. That is where the majority of our property options are located.”
On October 30, 2008, the Effective Date, we entered into a Mineral Right Option Agreement with Temasek Investments Inc. to acquired four separate options from Temasek, each providing for the acquisition of a twenty-five percent (25%) interest in certain mineral rights in Peru, thus potentially resulting in our acquisition of 100% of the Mineral Rights. The Mineral Rights are owned by Minera Saramiriza S.A.C. (“Saramiriza”). Woodburn Investments, Inc. (“Woodburn”), a wholly-owned subsidiary of Temasek, owns 999 shares of the 1,000 shares of Saramiriza that are issued and outstanding. Temasek owns the single remaining share of Saramiriza. The acquisition of each 25% interest in the Mineral Rights will occur through the transfer to us of 25% of the outstanding shares of Woodburn.
We may exercise the initial twenty-five percent (25%) option to acquire a 25% interest in the Mineral Rights by paying $500,000 to Temasek within 60 days and issuing 5,000,000 shares of our common stock to Temasek within five (5) business days from the Effective Date.
We may exercise the second twenty-five percent (25%) option resulting in our acquisition of a 50% interest in the Mineral Rights within 6 months of the Effective Date by paying an additional $1,000,000 to Temasek and issuing 5,000,000 additional shares of our common stock to Temasek.
We may exercise the third twenty-five percent (25%) option resulting in our acquisition of a 75% interest in the Mineral Rights within 12 months of the Effective Date buy paying an additional $2,000,000 to Temasek, and issuing 5,000,000 additional shares of our common stock to Temasek.
We may exercise the fourth twenty-five percent (25%) option resulting in our acquisition of a 100% interest in the Mineral Rights within 18 months of the Effective Date by paying an additional $4,000,000 to Temasek and issuing 5,000,000 additional shares of our common stock to Temasek.
Upon our acquisition of a 100% interest in the Mineral Rights, Temasek will hold its single share of Saramiriza in trust for our sole benefit and hold the share strictly in accordance with our instructions. Also upon our acquisition of a 100% interest in the Mineral Rights, Temasek is entitled to an annual 2.5% net returns royalty. However, if we pay Temasek $2,000,000 within ninety (90) days of our acquisition of a 100% interest in the Mineral Rights, Temasek will only be entitled to an annual 1.5% net returns royalty.
If we exercise the second twenty-five percent (25%) option, resulting in our acquisition of a 50% interest in the Mineral Rights, and fail to acquire a 100% interest in the Mineral Rights, we and Temasek will form a joint venture in which we will be wholly responsible for developing a feasible mining project and all necessary facilities and Temasek shall retain a carried free interest in the mining rights. If we do not develop a feasible mining project within three years of the Effective Date, we will be responsible pay Temasek an advance minimum mining royalty of $500,000 per year, which will be deducted from Temasek’s net return royalty.
About RiverRun Resources
RiverRun Resources has secured options on 79 square kilometers of strategically located properties in the rapidly developing Gold Sands district of Northeastern Peru. The company believes that substantial deposits of alluvial gold may be deposited in the loose sands and gravels which is the prevalent soil chemistry throughout the entire Gold Sands district. For millions of years, two large rivers have been carving through the gold-enriched mountains of Peru and Ecuador. The rivers converge above a narrow gorge which acts like a giant natural sluice box as the high-energy river passes through it. On the other side of that gorge is where the Gold Sands are formed and the RiverRun properties exist. Recent technological advancements in the design of modern dredges and processing plants has greatly enhanced the economic viability of extracting gold from large-tonnage low-grade deposits of Gold Sands. We intend to test the extent, if any, that sufficient quantities of gold exist within our Gold Sands properties to warrant commercial production.
On behalf of the Board,
Jose Alirio Lenzi, Director and CEO
RiverRun Resources Inc. (PINK SHEETS: RRRO)
Disclaimer: This release contains forward-looking statements that are based on the beliefs of RiverRun Resources Inc’s management and reflect RiverRun Resources Inc’s current expectations as contemplated under section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. When used in this release, the words “estimate,”"project,”"believe,”"anticipate,”"intend,”"expect,”"plan,”"predict,”"may,”"should,”"will,”"can,” the negative of these words, or such other variations thereon, or comparable terminology, are all intended to identify forward-looking statements. Such statements reflect the current views of RiverRun Resources Inc. with respect to future events based on currently available information and are subject to numerous assumptions, risks and uncertainties, including, but not limited to, risks and uncertainties pertaining to development of mining properties, changes in economic conditions and other risks, uncertainties and factors, which may cause the actual results, performance, or achievement expressed or implied by such forward-looking statements to differ materially from the forward-looking statements.
Contacts: RiverRun Resources Inc. Jose Alirio Lenzi Director and CEO (360) 923-9200 or Toll Free: 1-877-923-9202 RiverRun Resources Inc. Investor Inquiries: (360) 923-9200 or Toll Free: 1-877-923-9202 Email: Info@RiverRunResources.com Website: www.RiverRunResources.com
SOURCE: RiverRun Resources Inc.