Encore Renaissance to Acquire Property in Handeni Region of Tanzania
1/11/2011 3:01 AM - Market Wire
VANCOUVER, BRITISH COLUMBIA, Jan 11, 2011 (Marketwire via COMTEX News Network) --
ENCORE RENAISSANCE RESOURCES CORP. (TSX VENTURE:EZ) (FRANKFURT:OUH1) (PINK SHEETS:ERRCF) Encore Renaissance Resources Corp. (the "Company") (TSX VENTURE:EZ)
Encore wishes to announce that it has entered in an option agreement with and arms-length vendor to acquire a 50% option in the Handeni East Prospect in the direct vicinity of Canaco Resources in Tanzania. This prospect is 50.5 square kilometres. In order to acquire this option Encore will make cash payment of $2,300,000, work commitments of a total of $2,500,000 in exploration work on the Property (the "Work") and the issuance to the Optionor of 20,000,000 common shares. A Finders fee may be payable according to TSX Venture guidelines.
-- $350,000 is due 5 days after TSX Approval and the additional $1,950,000
will be paid in year two of the agreement.
-- $350,000 work commitment is due in the first year and the additional
$2,150,000 is due in year two
-- 7,000,000 Shares within 5 business days of Exchange Approval, a further
7,000,000 Shares on or before 6 months after Exchange Approval; and A
further 6,0000,000 Shares on or before 13 months after Exchange
Approval.
Michael Mulberry, president of Encore stated, "This is a significant acquisition for Encore. Tanzania has garnered a tremendous amount of global attention in the past year especially in light of the major discovery made by Canaco Resources. Canaco has seen its shares trade from .36 cents this past year to a high of 6.22 on December 31, 2010. We are excited about the close proximity of this prospect to Canaco and look forward to getting on the ground as soon as possible to start operations.
Based on the consultants of Encore's due diligence on visits to the property, they report that the artesianal miners have found "abundant" gold from the workings which in some cases were only 2-3 days old and several quartz veins up to 10 cm thick in a dark mafic amphibolitic rock have been seen. The structure of the veins appears to parallel the foliation but some low angle crosscutting features were observed. The strike of the zone appears to be NNW, and like the Magambazi zone which can be seen to the SSW, is associated with a resistant "knob" standing above the surrounding plain. This is the first of at least 3 resistant knobs that are found on the property and require detailed investigation. At this time no actual quantities of gold can be verified.
In conjunction with proposed transaction the company is planning to complete a 10 million share private placement at 10 cents for gross proceeds of 1 million dollars. This placement will have full warrants exercisable at 12 cents for 5 years. A finders fee may be payable.
The content of this release has been reviewed and approved by Lawrence Stephenson, PGeo, a qualified person as defined by National Instrument 43-101.
Michael Mulberry, President and Director
SOURCE: Encore Renaissance Resources Corp.
Encore Renaissance Resources Corp. Michael Mulberry President and Director 360 389 1196 or 604 818 1706 info@encorerenaissance.com Encore Renaissance Resources Corp. Head Office Address Suite 809 - 27 Alexander St Vancouver, BC, Canada, V6A 1B2
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