 |   Thu May 27, 2010
AMENDED TERMS FOR EL PAREDON ACQUISITION PROPOSED CALATRAVA ACQUISITION NOT PROCEEDING
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| | Mr. Jim Robertson, Director, reports that Sennen Resources Ltd. ("Sennen" or the "Company") has reached amended terms for the acquisition of an option over an 80% interest in Minera de Rio Guadiato S.L. ("MRG"), the company that owns the rights to the La Nava-El Paredon massive sulphide mineral deposit. The Company also reports that it has decided not to proceed with the acquisition of the 75% interest in Minerales Nova S.L. ("Minerales"), the Company that owns a 100% interest in the Calatrava cobalt-manganese project.
Details of the original terms for the option and purchase of the 80% interest in MRG were reported in a news release dated May 14th, 2010. Under the amended terms of the agreement over the 80% interest in MRG, Sennen shall now be entitled to retain the option (the "MRG Option") to purchase the 80% interest in MRG for up to four years (the " MRG Option Period") by paying a total of US$2.5 million and issuing a total of 5 million common shares of the Company with a deemed value of Cdn$0.24 per share (the "MRG Option Payments) over the course of the MRG Option Period.
Under the amended terms, the MRG Option Period is now four years, and MRG Option Payments are now payable as follows:
(a) US$200,000 on execution of the Heads of Agreement, with the amended terms;
(b) US$300,000 and 1,000,000 common shares of Sennen to be issued upon receipt of regulatory acceptance to the transaction ("MRG Completion");
(c) US$500,000 and a further 1,000,000 common shares of Sennen to be issued 12 months after MRG Completion in order to keep the MRG Option open for a second year;
(d) US$700,000 and a further 1,500,000 common shares of Sennen to be issued 24 months after MRG Completion in order to keep the MRG Option open for a third year;
(e) US$800,000 and a further 1,500,000 common shares of Sennen to be issued 36 months after MRG Completion in order to keep the MGR Option open for a fourth year.
In order to exercise the MRG Option, Sennen must pay US$4 million and issue eight million common shares of Sennen, with a deemed value of Cdn$0.24 per share.
The MRG Option can be exercised at any time after 12 months in lieu of any remaining option payments.
Sennen retains the right of first refusal to acquire the remaining 20% of MRG at any time during the MRG option period.
The Agreement remains subject to the acceptance of the TSX Venture Exchange and in accordance with TSX Venture Exchange guidelines a finder's fee is payable on this transaction.
The Company also reports that it has decided not to proceed with the acquisition of a 75% interest in Minerales and that no costs other than for technical and legal due diligence have been incurred.
Sennen currently has 47,998,665 shares issued and outstanding and over $17.0 million in cash in the treasury. The Company is capable of meeting all its obligations with respect to the acquisition and expenditures on the El Paredon project without the need for further financing.
For further corporate information contact:
Barbara Dunfield
604-685-6851
info@sennenresources.com
"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." |
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| | You can view the Previous News Releases item: Fri Apr 30, 2010, HEADS OF AGREEMENTS REACHED TO ACQUIRE INTERESTS IN MASSIVE SULPHIDE AND COBALT-MANGANESE MINERAL DEPOSITS IN SPAIN
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