/NOT FOR DISSEMINATION IN THE U.S. OR THROUGH U.S. NEWSWIRES/
Trading Symbol: FTR-TSX: V
VANCOUVER, May 14, 2013 /CNW/ - Firesteel Resources Ltd. ("Firesteel" or the "Company") (TSX-V: FTR) announces that it has entered into a term sheet dated
May 8, 2013 for an option and joint venture agreement (collectively,
the "Transaction") with OZ Exploration Pty Ltd. ("OZ"), a subsidiary of OZ Minerals Limited (OZE:ASX) of Australia. The
term sheet provides OZ the right to acquire up to a 70% interest in the
ROK Coyote property (the "Property") located in northwestern British Columbia. It is intended that the
term sheet will be superseded by a definitive agreement (the "Definitive Agreement") to be entered into between OZ and Firesteel.
Firesteel and OZ anticipate completing the Definitive Agreement by July
2013. The Transaction is subject to due diligence and regulatory
approval.
Upon completion of the Transaction, OZ expects to be actively engaged in
the exploration of the Property.
Michael Hepworth, Interim President and CEO of Firesteel stated, "The
ROK Coyote property is right in the heart of the recent activity
between Colorado Resources Ltd.'s North ROK property and the Red Chris
property of Imperial Metals Corporation. We have eight on trend targets
on the property and believe the best opportunity to reward shareholders
is by partnering with a major mining company such as OZ Minerals. OZ
Minerals has the funding, experience and expertise to make ROK Coyote a
viable project."
Transaction Terms
Under the terms of the Transaction, OZ has an option (the "Option") to earn up to a 70% interest in the Property which may be exercised
by:
-
Making cash payments to Firesteel totalling US $500,000 over 43 months;
-
Incurring exploration expenditures (the "Expenditures") totalling US $8,000,000 over 43 months.
-
After completion of the Expenditures, if OZ wishes to continue
exploration, it must pay Firesteel an additional US $1,000,000. In
the event that OZ continues exploration, Firesteel will have a once
only election to agree to fund its 30% share of expenditures on a go
forward basis through to completion of final construction and
commissioning of a mine. If Firesteel decides not exercise its once
only election to finance its share of the investment, OZ can acquire a
further 10% interest in the Property by spending US $5,000,000 on
exploration.
OZ will be appointed as the operator of the Property and will have the
exclusive and sole responsibility of administering and carrying out the
exploration programs on the Property.
OZ Minerals Limited
OZ Minerals Limited is an Australian based mining company with a focus
on copper. The company owns and operates the high quality Prominent
Hill copper-gold mine in South Australia and is working to maximise the
asset through organic growth. The company also owns the Carrapateena
copper project in South Australia which is one of Australia's largest
undeveloped copper deposits, currently at an advanced exploration
stage.
OZ Minerals is also looking to pursue other projects which deliver
attractive returns for shareholders through acquisition, organic
development and or exploration. OZ Minerals has a strong balance sheet,
a team of highly skilled mining industry professionals and a commitment
to respect, integrity, action and results.
ON BEHALF OF THE BOARD OF DIRECTORS OF
FIRESTEEL RESOURCES INC.
"Michael Hepworth"
________________
Michael Hepworth,
Interim President and CEO
Neither TSX Venture Exchange nor its Regulation Services accepts
responsibility for the adequacy or accuracy of this release.
Advisory Regarding Forward Looking Statements
This news release contains forward-looking statements. Users of
forward-looking statements are cautioned that actual results may vary
from forward-looking statements contained herein. Forward-looking
statements include, but are not limited to: expectations, opinions,
forecasts, projections and other similar statements concerning
anticipated future events, conditions or results that are not
historical facts. In certain cases, forward-looking statements can be
identified by the use of words such as "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate", or
"believes", or variations of such words and phrases or statements that
certain actions, events or results "may", "could", "would", "might" or
"will be taken", "occur" or "be achieved". While the Company has based
these forward-looking statements on its expectations about future
events as at the date those statements were prepared, the statements
are not a guarantee of the Company's future performance. Firesteel's
potential deposits and mineralization and promising potential on its
ROK Coyote property and its launch of the Transaction as disclosed in
this news release (together, the "Significant Matters") and all outcomes are subject to risks, uncertainties, assumptions and
other factors which could cause actual results, performance or
achievements to differ materially from future results, performance or
achievements expressed or implied by such forward-looking statements.
Although the Company believes that the expectations reflected for the
Significant Matters in such forward-looking statements are reasonable,
it cannot give any assurance that such expectations will prove to be
correct.
The Company's forward-looking statements are expressly qualified in
their entirety by this cautionary statement and are made as of the date
of this new release. Unless otherwise required by applicable
securities laws, the Company does not intend nor does it undertake any
obligation to update or review any forward-looking statements for the
Significant Matters to reflect subsequent information, events, results
or circumstances or otherwise.
SOURCE: Firesteel Resources Inc.
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