VANCOUVER, British Columbia--(BUSINESS WIRE)--Santa Barbara Resources Limited (TSX-V: SBL - “Santa Barbara” or the “Company”) announced on October 6, 2014, that it had granted an option (“ERCED Option”) to purchase all of the shares of the Company’s wholly owned subsidiary, Santa Barbara Resources Peru S.A.C. (“SBL Peru”), the holder of the Sancos and Surapata gold projects in Peru, to ERCED S.A.C. (“ERCED”), a privately owned Peruvian mineral exploration and mining company.
All of the shareholders who voted (32%), voted in favour of the sale of SBL Peru to ERCED at a shareholder meeting held November 6, 2014. The Company has now received both shareholder and regulatory approval of the ERCED Option.
As previously reported, SBL Peru recently exercised its underlying option to purchase the Sancos property and paid a final option payment of US$400,000. The Company used a portion of the US$615,000 deposit (the “Deposit’) paid to it by ERCED in obtaining the ERCED Option in order to fund that payment. Title to the Sancos property is now in the process of being transferred to SBL Peru as the final remaining condition to ERCED exercising the ERCED Option.
If ERCED exercises the Option it will pay the Company an additional US$615,000. If ERCED does not exercise the ERCED Option, once all conditions to exercise are met, then the Company will be entitled to keep the Deposit.
About the Company
Santa Barbara is a South American mineral explorer focusing on South America, and Peru in particular. The Company has 25.3 million shares outstanding. It is expected that the proposed sales transaction, if completed, will provide the Company with sufficient working capital to continue its mineral property acquisition and exploration activities for at least 12 months and the Company’s plan will be to pursue the acquisition of a quality mineral exploration property in that period.
ON BEHALF OF THE BOARD
Christoph Lassl, President and
Chief Executive Officer
Please visit the Company’s web site: www.sbr-ltd.com. For further information, please contact Christoph Lassl, President and Chief Executive Officer. Telephone: 56-9-81490442 or email: firstname.lastname@example.org.
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 or accuracy of this release.
This news release contains certain statements that may be deemed “forward-looking” statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur and include, without limitation, statements regarding the Company’s plans with respect to selling its mineral properties and obtaining the proceeds therefrom. Although Santa Barbara believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements due to factors such as uncertainties in obtaining required approvals or in completing a transaction in difficult market conditions. Forward looking statements are based on the beliefs, estimates and opinions of the Company’s management on the date the statements are made. Except as required by law, the Company undertakes no obligation to update these forward-looking statements in the event that management’s beliefs, estimates or opinions, or other factors, should change.