Steele Resources Corporation Announces Project Funding
February 10 2011 - 8:30AM
Marketwired
Steele Resources Corporation (the "Company") (OTCBB: SELR)
announced today that its subsidiary Steele Resources, Inc. has
signed a Letter of Intent (LOI) to enter into a joint venture with
Innocent Inc. in order to complete the Company's acquisition of the
Mineral Hill gold exploration property located near Pony, Montana.
Pursuant to the LOI, Steele Resources, Inc. and Innocent, Inc. will
form a joint venture (the "JV") with the aim of bringing the
Mineral Hill Gold Exploration Project into production. It is
anticipated that Steele Resources, Inc., as operator, will commence
a project development program in March 2011.
Scott Dockter, Steele Resources President and CEO, stated, "The
JV with Innocent, Inc. will substantially benefit the shareholders
of Steele Resources as it provides the necessary finances to
complete the acquisition of the Mineral Hill Gold Exploration
Project as well as commence advanced exploration and resource
mapping. Combined with the recently announced $10,000,000 equity
finance, this moves Steele into a well financed position and
enables the Company to take full advantage of the opportunities
before us."
Mineral Hill Gold Exploration Project
Background: The Mineral Hill Gold Exploration Project is
located in the Mineral Hill Mining District and consists of 19
patented and 67 unpatented lode mining claims (approximately 1,800
acres) which are currently under an LOI by Steele Resources for a 7
year lease-purchase agreement.
The district has numerous historical mines and produced an
estimated 350,000 ounces of gold between 1890 to 1941. The Mineral
Hill Project is estimated to have yielded 128,000 tons of ore from
1934 to 1941, and according to historical reports available, still
contains an estimated 5.8 million tons of ore.
Joint Venture Structure: The initial
participating interests of Steele Resources, Inc. and Innocent,
Inc. in the JV will be 50% and 50%. Under the terms of the LOI,
Innocent may contribute up to $5,000,000 in operating funds over
one year. In the event those funds are not provided, Innocent will
forfeit 10% per $1,000,000 not provided. Steele Resources, Inc.
will act as the operating partner and have a commitment to match up
to $5,000,000 in funding within one year of Innocent, Inc.
contributing its first $1,000,000.
Formation of the JV is subject to the negotiation and execution
of a definitive joint venture agreement which must be completed
prior to March 4, 2010.
About Steele Resources Corporation: Steele
Resources Corporation is a precious metals exploration and
development company operated by professionals with extensive
exploration, mining, and public market experience. The Company is
working to become an active gold producer through exploration,
acquisitions, mergers, and by developing its existing portfolio of
properties. Its current ensemble of exploration properties, held by
its subsidiary, Steele Resources, Inc., includes two Nevada
properties, its Comstock Tyler Project which consists of 600 acres
in the historic Comstock District and its Fairview-Hunter Project
which consists of 2,300 acres near the Denton-Rawhide Mine. The
Company has also announced plans to acquire the Mineral Hill
Exploration project which is located near Pony, MT.
More information about Steele Resources Corporation can be found
at www.steeleresources.com.
Safe Harbor Statement The matters discussed in this release
contain forward-looking statements within the meaning of Section
21E of the Securities Exchange Act of 1934, as amended, and Section
27A of the Securities Act of 1933, as amended that involve risks
and uncertainties. Although Steele Resources Corp. believes that
the expectations reflected in such forward-looking statements are
reasonable, the forward-looking statements are subject to risks and
uncertainties that could cause actual results to differ from those
projected. Steele Resources Corp. cautions investors that any
forward-looking statements made by Steele Resources Corp. are not
guarantees of future performance and actual results may differ
materially from those in the forward-looking statements. Factors
that could cause actual results to differ materially from those
reflected in forward-looking statements include, but are not
limited to, risks and uncertainties regarding the actual
mineralization of Steele Resources Corp.'s mining properties, the
unproven nature of and potential changes to Steele Resources
Corp.'s business model, the risk that the capital and other
resources that Steele Resources Corp. will need to exploit its
business model will not be available, and the risks discussed in
Steele Resources Corp.'s Form 8-K dated June 17, 2010 and in Steele
Resources Corp.'s subsequent filings with the Securities and
Exchange Commission.
Contact: Scott Dockter Phone: 530.672.6225 Email:
info@steeleresources.com Website: www.steeleresources.com
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