VANCOUVER, Sept. 30, 2013 /CNW/ - Karoo Exploration Corp. (the
"Company") (TSX-V: KE.V) is pleased to announce that it was entered
into a letter of intent pursuant to which it will acquire the Chirundu
Project, along with a portfolio of uranium properties, in Zambia, from
African Energy Resources Ltd. (ASX: AFR). African Energy is an
arm's-length party, listed on the Australian Stock Exchange, and is a
mining development company focused on Botswana and Zambia.
The Chirundu Project will add to Karoo's existing portfolio of Uranium
projects in Africa. The properties are located in the south and
northeast of Zambia, and are comprised of the Chirundu, Kariba Valley,
and North Luangwa Valley projects. The uranium mineralization at
Chirundu and Kariba is hosted by Karoo Supergroup sediments, whereas
the North Luangwa Valley mineralization is hosted in feldspathic
gneisses of the Karoo basement.
Karoo can acquire the project, and accompanying properties, in
consideration for the cash payment of USD$2,000,000, and the issuance
of an equity package consisting of shares and share purchase warrants
with a value of USD$500,000, priced based on any offering completed by
Karoo concurrent with this acquisition.
The acquisition remains subject to certain conditions, including Karoo
obtaining financing on acceptable terms, completion of due diligence
satisfactory to both Karoo and African Energy, and approval of the TSX
Venture Exchange. All securities issued in connection with the
acquisition will be subject to a four month hold period. The
acquisition cannot be completed until these conditions are satisfied,
and there can be no assurance that the acquisition will be completed as
proposed or at all.
ON BEHALF OF KAROO EXPLORATION CORP.
Robert Dzisiak
Director and CEO
Dr. Sandy M. Archibald, P.Geo., is the qualified person who supervised
the preparation of the technical data in this news release.
Neither 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.
Statements included in this announcement, including statements
concerning our plans, intentions and expectations, which are not
historical in nature are intended to be, and are hereby identified as,
"forward looking statements". Forward looking statements may be
identified by words including "anticipates", "believes", "intends",
"estimates", "expects" and similar expressions. The Company cautions
readers that forward looking statements, including without limitation
those relating to the Company's future operations and business
prospects, are subject to certain risks and uncertainties that could
cause actual results to differ materially from those indicated in the
forward looking statements.
SOURCE Karoo Exploration Corp.
