Halo Resources Ltd. Relinquishes Interest in Duport Property
19.07.2012 | Marketwire
TORONTO, ONTARIO -- (Marketwire) -- 07/19/12 -- Halo Resources Ltd. (TSX VENTURE: HLO)(FRANKFURT: HRLN) ("Halo" or the "Company") wishes to advise that it has received notification from Hays Lake Gold Inc. ("Hays Lake") terminating its option to earn a further 24% interest (for a total 75% interest) in the Duport Property, located near Kenora, Ontario.As a result of this decision by Hays Lake to terminate its option, the Company has determined to relinquish its entire interest in the Duport Property to Sheridan. The Company expects to record a pre-tax write-down of approximately $4.0 million, net of the $8.0 million redeemable preferred shares.
The Company originally acquired a 100% interest in the Duport Property in February 2005 from the Sheridan Platinum Group ("Sheridan"). As partial consideration the Company had issued $8.0 million in redeemable preferred shares which were to be redeemed no later than November 1, 2012. In October 2008 the Company entered into an option agreement with Hays Lake whereby Hays Lake had subsequently earned its 51% interest in the Duport Property.
ON BEHALF OF THE BOARD OF DIRECTORS
Marc Cernovitch
President & CEO
About Halo Resources Ltd.
Halo is a Canadian-based resource company with base metal and gold assets. The Sherridon VMS Property is a combination of mature and grassroots volcanogenic massive sulphide (VMS) copper, zinc and gold exploration opportunities covering over 20 square kilometers. A 2010 NI43-101 compliant copper-zinc resource, for four of the known deposits in the district, included Indicated Resources of 6.5 million tonnes grading 0.85% copper and 1.22% zinc and Inferred Resources of 15.9 million tonnes grading 0.68% copper and 0.84 % zinc. HudBay holds options on half of the Sherridon VMS Property to earn 51% and controls 19% of the Company's shares. The Company has a 60:40 joint venture partnership with Red Lake Gold Mines Partnership (RLGMP), a partnership between Goldcorp Canada Ltd. and Goldcorp Inc. (TSX: G)(NYSE: GG) at West Red Lake covering 4,400 hectares. 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.
416-619-7539
ir@halores.com
www.halores.com