Citation Enters Into Letter of Intent for 100% Option in Biricu Prospect, Mexico from Esperanza Resources
November 23 2011 - 9:00AM
Marketwired
Citation Resources Inc. ("Citation" or the "Company") (TSX
VENTURE:CTT) is pleased to announce that it has signed a Letter of
Intent with Esperanza Resources Corp. ("Esperanza") for an option
to acquire Esperanza's 100% interest in the Biricu Prospect mineral
exploration concession located in Morelos State, Mexico. The Biricu
Prospect comprises more than 38,000 hectares of highly prospectable
ground. Management believes that the Biricu Prospect is the direct
on-strike extension of five skarn deposits in the Guerrero Gold
Belt (El Limon-Los Guajes - Torex Gold Resources Inc.; Bermejal,
Los Filos, and Nukay - Goldcorp Inc.; Ana Paula - Newstrike Capital
Inc.). To date, very limited exploration activity has been
conducted on the property.
The acquisition is subject to, among other things, completion of
satisfactory due diligence by Citation and entering into a
definitive option agreement (the "Option Agreement"), which under
the Letter of Intent the two parties have agreed to use their best
efforts to execute by December 22, 2011.
Pursuant to the terms of the Option Agreement the Company will
be required to make a cash payment of $20,000 upon execution of the
Option Agreement and over four years: i) issue 1,050,000 common
shares in Citation to Esperanza, including 250,000 on the first
anniversary of executing the Option Agreement; and ii) complete
exploration expenditures of $4,000,000, including $250,000 in the
first year. Esperanza will also nominate one Director to Citation's
Board.
In addition, Esperanza will also be granted a 2% net smelter
royalty on all metals recovered from the property and be paid
within six months of Citation receiving a bankable feasibility
study on the property a resource payment equal to Cdn$10.00 per
ounce of gold resource estimated in the bankable feasibility study,
which sum will be payable in cash or, at Citation's election,
satisfied by the issuance of common shares in Citation.
About Citation Resources
Citation Resources Inc. is a growth-oriented, Canadian mining
company dedicated to the exploration and development of precious
and base metal resources. Citation is based in Vancouver, British
Columbia and aims to create shareholder value through the
acquisition, exploration, and development of profitable mineral
properties, in a manner that is consistent with best practice in
environmental stewardship, safety and stakeholder engagement. The
Company has an option agreement with Rainy Mountain Royalty
Corporation and International Bethlehem Mining Corporation to
acquire the right to earn a 60% total interest in the Eva Kitto
Property. The Eva Kitto Property claims are located approximately
190 kilometres northeast of Thunder Bay, Ontario.
ON BEHALF OF THE BOARD OF DIRECTORS
CITATION RESOURCES INC.
Nigel Kirkwood, CFO
Neither 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.
Contacts: Citation Resources Inc. Nigel Kirkwood CFO
604-681-8347info@citationresources.comwww.citationresources.com
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