Sonoma Resources Inc. Executes Limestone Option Agreement
12.03.2014 | Marketwire
VANCOUVER, March 12 2014 - Sonoma Resources Inc. (TSX VENTURE:SRQ) is pleased to announce that, further to the Letter of Intent announced January 13, 2014, it has acquired the beneficial and irrevocable right and option to acquire from Opus Ventures Ltd. ("Opus") a 100% legal interest in Opus' Century Limestone Property located on Vancouver Island, B.C.The 1,940 hectare Century Limestone Property encompasses a large area underlain by limestone adjacent to tidewater on Nootka Sound northeast of the Town of Gold River. Limestone is an industrial mineral with ongoing demand in such applications as steel manufacturing, road construction and commercial concrete construction. Sonoma's main interest is in added value markets where it is used in the manufacture of products such as paper, pulp, glass, paint, textiles, soap and detergents.
Subject to TSX Venture Exchange approval, terms of the Option Agreement include:
- Sonoma will have four years to exercise the option;
- Sonoma will incur expenditures over a three year period; $100,000 in year one, $200,000 in year two and $300,000 in year three;
- Upon entering into the binding Purchase and Sale Agreement, Sonoma will issue to Opus 500,000 shares;
- Sonoma will pay Opus an advance annual royalty of $40,000 starting at the end of Year three; and
- Sonoma will pay Opus a royalty of $0.35 per tonne on the first 1,000,000 tonnes of limestone production and $0.20 per tonne on the balance of limestone production (minus the advanced annual royalty) for the life of the quarry.
States Managing Director, Scott Young, "Sonoma is excited to be working with Opus in exploring the potential of the Century Limestone Project. We believe that a limestone source with access for barges and ships and the existing infrastructure in Gold River make for a compelling opportunity. The terms of the agreement ensure that funds for the first years go to developing the opportunity, including detailed sampling and analysis of the limestone, investigations into processing and product market studies. Opus will benefit along with Sonoma if the project is successful."
On behalf of the Board of Directors
Scott Young
Managing Director
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.
Contact
Sonoma Resources Inc.
Scott Young, Managing Director
604-377-5781