Calgary, Alberta (FSCwire) - MORRO BAY RESOURCES LTD. (TSXV: MRB), (“Morro Bay”), announces that it has agreed with Riverside Resources Inc. ("Riverside") to extend the option exercise date for the Peñoles Project in Durango, Mexico (the “Project”). The date for the exercise of the option by Morro Bay has been extended to now be the later of November 30, 2014 and the date which is 75 days after the completion of the Additional Work Program (discussed below), and in any event not later than December 31, 2014 (the "Option Exercise Date"). Morro Bay has the option to earn a 51% interest in the Project with an additional option to earn up to a 65% interest.
Morro Bay and Riverside have agreed to Morro Bay proceeding with an additional $500,000 exploration and development program at the Peñoles Project (the “Additional Work Program”). Morro Bay will be the operator of the Additional Work Program and will retain Riverside to carry-out the program in Mexico. The Additional Work Program will be jointly agreed upon by Riverside and Morro Bay and will commence as early as June 30, 2014 and is to be concluded by October 31, 2014. Morro Bay has agreed to deliver to Riverside one-half of the $1,500,000 payment (the “Advanced Payment”) on or before June 30, 2014, which is payable in cash or Morro Bay shares as outlined in the Amended and Restated Option Agreement (see Morro Bay’s news release dated December 23, 2014). 70% of such Morro Bay shares delivered to Riverside will be held in escrow until December 31, 2014. Morro Bay and Riverside have also agreed to finalize the terms of the formal Joint Venture Agreement which is to be in place upon the Option being exercised.
John Zang, CEO of Morro Bay, stated, "We are very pleased with the results from the exploration program operated by Morro Bay this past winter, which indicate the significant potential for an open pit deposit at Peñoles. This summer’s planned additional work program will target further value creation for our shareholders, as well as allow for the continued opportunity for Morro Bay and Riverside to further advance this project.”
The extension of the date for the exercise of the Option will allow Morro Bay to ensure that the formal Joint Venture Agreement (being the contractual arrangement with Riverside by which the Project will proceed if the Option is exercised) is completed prior to Morro Bay delivering the entirety of the Option Exercise Price and in the event the Option is exercised, it will potentially reduce the dilution to Morro Bay shareholders by allowing the market to recognize the significant discoveries to date (see the Morro Bay news releases dated June 9, 2014 and June 23 , 2014). The extension also provides Morro Bay with the opportunity to explore additional targets - largely unexplored to date - at the Peñoles Project.
About Morro Bay
Morro Bay is a junior mineral exploration company based in Calgary, Alberta, Canada, focused on the exploration for precious metals in Mexico. Morro Bay's business strategy is to build shareholder value by rapidly advancing the Peñoles Project in Mexico through the resource delineation stage.
Further Information
For further information please contact:
Morro Bay Resources Ltd.
John C. Zang
President and Chief Executive Officer
403 680 9264
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Information in this news release may contain forward looking information. Statements containing forward looking information express, as at the date of this news release, the Company's plans, estimates, forecasts, projections, expectations, or beliefs as to future events or results and are believed to be reasonable based on information currently available to the company.
There can be no assurance that forward-looking statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. Readers should not place undue reliance on forward-looking information.
The forward-looking information contained in this news release is as of the date hereof and Morro Bay does not undertake any obligation to update publicly or to revise any of the included forward looking statements contained herein, except as required by applicable law. The forward-looking statements contained herein are expressly qualified by this cautionary statement.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any state in the United States in which such offer, solicitation or sale would be unlawful. The securities referred to herein have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
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public://news_release_pdf/MorroBayJuly72014.pdf
Source: Morro Bay Resources Ltd. (TSX Venture:MRB) https://www.morrobayresources.com/
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