Toronto, Ontario, December 17, 2012 – Zara Resources Inc (CNSX: ZRI) (“Zara”) and Melkior Resources (TSXV: MKR) (“Melkior”) are pleased to announce the execution of a definitive agreement whereby Zara will acquire 100% of the Riverbank claims (“Riverbank”) owned by Melkior for the sum of$68,000.
Riverbank is located in the Kasabonika-McFauld’s Greenstone Belt about 540 km to the north east of Thunder Bay and 350 km north of Geraldton, Ontario. It consists of 8 unpatented mining claims comprising 87 claim units covering an area of approximately 1392 ha. The property is believed to be underlain in part by mafic to ultramafic rocks that potentially could host nickel-copper mineralization.
Zara presently owns an option with Melkior to earn up to a 70% interest in Riverbank and the adjacent Broke Back property by incurring a minimum of $1,600,000 in work expenditures by no later than December 31, 2014. That option will now be negated as Zara will own 100% of Riverbank. Zara has also decided to let the Broke Back claims lapse and focus on exploring the more promising Riverbank claims.
The consideration for 100% of Riverbank will be payable by the issuance of 225,000 Common Shares of Zara at a deemed price of $0.10 per share, and 455,000 Non Voting Convertible 5% Preference Shares of Zara at a deemed price of $0.10 per share. The Preference Shares annual yield will be payable in common shares of Zara at the prevailing market price, and are convertible at the discretion of Zara into common shares of Zara at the market price at the time of conversion. Riverbank is also subject to a preexisting 2% NSR. Closing ofthe acquisition is subject to various regulatory consents and other items, and is anticipated to be on or before December 21, 2013.
Melkior President Jens Hansen stated “We are pleased to continue our involvement in the Riverbank project by way of our investment in Zara Resources.”
Danny Wettreich, the CEO of Zara said “Our 100% ownership of Riverbank will facilitate our exploration plans, and we are pleased to welcome Melkior as shareholders of Zara.”
This press release has been reviewed and approved by Alan Aubut, P.Geo, an independent geological consultant and a Qualified Person under National Instrument 43-101.
About Winston Resources
Zara is a Toronto based mineral company developing its Riverbank nickel-copper project, in Ontario, Canada, as well as the acquisition and development of other Canadian natural resource properties.
For more information please see www.leoresourcesinc.com or contact Danny Wettreich at (416) 628-9879 or dw@WinstonResourcesInc.com
Forward-Looking Information: This press release may include forward-looking information within the meaning of Canadian securities legislation, concerning the business and trading in the common stock of Winston Resources Inc. The forward-looking information is based on certain key expectations and assumptions made by the company’s management. Although the company believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because the company can give no assurance that they will prove to be correct. These forward-looking statements are made as of the date of this press release and the company disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.
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