SECOVA METALS CORP. OPTIONS TRES-OR’S DUVAY GOLD PROJECT IN QUEBEC 6-Jan-2015
Tres-Or Resources Ltd. (“Tres-Or” or “Optionor”) (TSX-V: TRS) is pleased to announce that Secova Metals Corp. (“Secova”) (TSX-V:SEK) has executed a term sheet to option up to a 90% interest in the Duvay Gold Project, comprising 105 claims in the Abitibi region, 15 kilometres northeast of Amos, Quebec.
Under the provisions of the term sheet, upon which a definitive acquisition agreement will be based, Tres-Or grants to Secova the sole and exclusive right and option to acquire a 65% right, title and interest in and to the Duvay claims by paying to the Optionor the sum of $500,000 and incurring $3,750,000 in exploration expenses over a four (4) year period. Secova can earn the full 90% of the property (an additional 25% ownership) by funding a pre-feasibility study and making aggregate expenditures of $12 million to bring the property towards production. To earn the initial 65% interest in the project, Secova will be required to make the cash payments and exploration expenditures as follows:
a. Secova pays the Optionor the sum of $15,000 on execution of the term sheet (completed);
b. Secova pays the Optionor the sum of $60,000 on Exchange approval;
c. Secova pays the Optionor the sum of $125,000 and has incurred $500,000 in exploration on the first anniversary of the execution of the Agreement (the “Effective Date”);
d. Secova pays the Optionor the sum of $300,000 and has incurred a further $750,000 in exploration on the second anniversary of the Effective Date;
e. Secova will incur a further $1,000,000 in exploration by the third anniversary of the Effective Date; and
f. Secova will incur a further $1,500,000 in exploration by the fourth anniversary of the Effective Date.
Secova shall act as operator and in circumstances where Secova earns the 90% interest in the Property, Tres-Or would revert to a 10% carried interest through to commercial production. In addition, Secova would grant to Tres-Or the right to receive a resource payment (the “Resource Payment”) based on the initial NI 43-101 compliant resource estimate on the claims, such payment to be equal to $30.00 for each gold ounce equivalent categorized as “measured”, $25.00 for each gold ounce equivalent categorized as “indicated”, and $15.00 for each gold ounce equivalent categorized as “inferred” to be paid from the proceeds of commercial production after deducting operating costs and other senior payments. If Secova chooses to remain at a 65% ownership interest then a joint venture will be formed with Tres-Or and the Resource Payment would be payable within 180 days of the joint venture formation.
The proposed acquisition agreement is subject to TSX Venture Exchange approval.
On behalf of the Board of Directors
TRES-OR RESOURCES LTD.
“Laura Lee Duffett”
President and CEO
Tel: +1 604-688-8700
About Tres-Or Resources Ltd.:
Tres-Or Resources Ltd. (TSX Venture: TRS) is a Canadian resource company focused on exploring for gold, base metals and diamond resources in the Abitibi-Témiscamingue regions in northwestern Quebec.