Halo Earns $1.2 Million for NSR Interest
TORONTO, ONTARIO -- (Marketwire) -- 04/05/11 -- Lynda Bloom, President and CEO of Halo Resources Ltd. ('Halo', the 'Company') (TSX VENTURE: HLO)(FRANKFURT: HRLN) is pleased to announce the sale of its net smelter return ('NSR') interest in the Bachelor Lake Mine properties held by Metanor Resources Inc. ('Metanor').
Halo acquired a 1% NSR in the Bachelor Lake Mine properties in 2007 and Metanor retains the right to purchase a 1/2% NSR for $500,000 within 18 months of the commencement of commercial production. Metanor has increased the capacity of the Bachelor Lake mill to an estimated 1,200 tonnes per day but production has not yet commenced from the underground areas of the Bachelor Lake mine where Halo's NSR would apply. In a press release dated January 4, 2011 Metanor announced Proven and Probable underground reserves of 200,177 ounces of gold (using a cut-off grade of 3.43 g/t and assuming 843,772 tonnes at 7.38 g/t gold).
Gold Royalties Corporation ('Gold Royalties'), a Calgary-based income-oriented royalty company has acquired the 1% NSR for a purchase price of $1.2 million. Gold Royalties has also agreed to pay Halo 40% of the value of any NSR payments paid for more than 200,000 ounces of gold (or gold equivalent ounces) less normal commercial charges (smelter penalties, transportation, insurance, etc.).
ON BEHALF OF THE BOARD OF DIRECTORS
Marc Cernovitch, Chairman
About Gold Royalties Corporation
Gold Royalties Corporation is an income-oriented royalty company that acquires and manages precious metals royalties with particular focus on early-stage NSRs and pre-production metal stream assets. For more information, please visit www.GoldRoyalties.ca.
About Halo Resources Ltd.
Halo is a Canadian-based resource company focused on the acquisition of near production base and precious base metal deposits. The Company's main focus is the 200 sq. km. Sherridon VMS Property, a combination of mature and grassroots volcanogenic massive sulphide (VMS) copper, zinc and gold exploration opportunities. The Company has a joint venture interest in the Duport Property, an advanced gold property near Kenora, Ontario and is the operator for contiguous joint venture properties in West Red Lake covering 26 sq. km. The Company is operated by an experienced management team with a growth strategy to develop a diversified portfolio of advanced mining projects.
Forward Looking Statements
This Company Press Release may contain certain 'forward-looking' statements and information relating to the Company that are based on the beliefs of the Company's management as well as assumptions made by and information currently available to the Company's management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitations, competitive factors, general economic conditions, customer relations, relationships with vendors and strategic partners, the interest rate environment, governmental regulation and supervision, seasonality, technological change, changes in industry practices, and one-time events. Should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described herein.
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.
Contacts:
Halo Resources Ltd.
Michael Joyner
IR
416-619-7539
416-601-9046 (FAX)
ir@halores.com
www.halores.com
First Canadian Capital Corp.
416-742-5600
Toll Free: 1-866-580-8891