TORONTO, ONTARIO--(Marketwired - April 16, 2013) -
THIS NEWS RELEASE IS NOT FOR DISTRIBUTION OR DISSEMINATION IN THE UNITED STATES OF AMERICA
Zara Resources Inc. (CNSX:ZRI) ("Zara") and Hudson River Minerals Ltd. (TSX VENTURE:HRM) ("Hudson") are pleased to announce that the acquisition by Zara of Hudson's mining claims in the Forge Lake Property has been completed. In accordance with the terms of a mining claims assignment agreement, Hudson assigned all of its rights, title and interest of the mining claims in the Forge Lake Property to Zara in exchange for 5,715,780 common shares of Zara at a deemed issue price of $0.10 per Zara common share. Zara also issued 114,316 common shares to the owner of the Forge Lake Property, 3011650 Nova Scotia Limited, as consideration to permit the assignment.
Hudson is restricted from transferring or otherwise disposing of the common shares of Zara received as consideration for the assignment of its rights in the Forge Lake Property for a period of 18 months following the closing date. Hudson is, however, permitted to distribute the Zara common shares to its shareholders on a pro rata basis, at which time the contractual restriction on transfer would be removed. Additionally, Hudson has entered into a voting trust agreement whereby Hudson has granted the voting rights attached to its Zara common Shares to Danny Wettreich, CEO of Zara, for a period of 18 months following the closing. In the event the Zara common shares are distributed to Hudson's shareholders prior to the expiration of the 18 month period, the voting trust agreement will terminate at the time of such distribution.
The Forge Lake Property is located about 32 kilometers to the northeast of Wawa, Ontario in the Cowie Township of Ontario, and consists of eight contiguous claims totaling approximately 7.17 square kilometers with a potential to host gold mineralization.
About Hudson River Minerals Ltd.
Hudson is focused on the discovery of precious metals and base metals in Ontario. The management team identifies underexplored areas that have historical intersections of economic minerals and has experience exploring in areas with little geologic outcrop and that rely heavily on geophysical technologies for discovery.
About Zara Resources Inc.
Zara is a Toronto based mineral company developing its Pigeon River and Riverbank nickel-copper projects, in Ontario, Canada, as well as the acquisition and development of other Canadian natural resource properties.