2012-10-19 14:05:53 -
Toronto, Ontario CANADA, October 19, 2012 /FSC/ - Cuervo Resources Inc. (CNSX-FE; FWB-CRR)
Strike Resources Limited ("Strike a significant stakeholder in Cuervo Resources Inc. ("Cuervo issued a press release dated October 17, 2012. The press release detailed various offers received by Strike in connection with its interest in Apurimac Ferrum S.A.
The Strike press release will be put on the Cuervo Resource Inc. website to enable shareholders to read it in its entirety.
Highlights of Strike's press release are as follows:
* Strike received three counter-offers to the shoot-out process to
acquire Strike's 50.1% interest in Apurimac Ferrum S.A.
* The highest counter-offer, which is from D&C Pesca S.A.C. pays
Strike a total cash
consideration of approximately US$ 62 million.
* Closing of this transaction is anticipated in early November, 2012.
Should this counter- offer close, Strike's 50.1% interest in Apurimac Ferrum S.A. which consists primarily of a JORC Indicated Resource of 142 million tonnes grading 58% Fe and an Inferred Resource of 127.3 million tonnes grading 56.7% Fe at Apurimac and an Inferred Resource of 104.4 million tonnes at 32.6% Fe in the Cusco area, would pass to D&C Pesca S.A.C.
Please note the following, which is taken directly from the Strike's Press Release:
Under the AFSA payment of the proceeds from the D&C Pesca counter-offer is due in early November 2012. Strike is in the process of making enquiries to D&C Pesca about its capacity to fund its counter-offer, and to date does not have any written or formal evidence of its ability to meet its obligations under the AFSA. Until such written or formal evidence is provided supporting the financial capacity of D&C Pesca to meet its payment obligations under the AFSA, the Board of Strike recommends that shareholders consider that there remains a substantial completion risk relating to the D&C Pesca counter-offer.
As a consequence, Strike is reviewing its alternatives in the event that D&C Pesca fails to meet its payment obligations."
Cuervo Board Comment
The Cuervo Resources Inc. Board has no additional knowledge or opinion on the events unfolding but wishes to inform its shareholders of a transaction that affects the financial strength of its funding partner, Strike Resources Limited.
Cuervo previously reported the following NI 43-101 compliant resources for its properties in the Cusco area of Peru.
Table 1- Resources previously reported by Cuervo
Zone Classification Tonnes (%Fe) (%Fe)
Orcopura Measured 19,696,000 48.3% 20.0%
Orcopura Indicated 35,856,000 45.9% 20.0%
Orcopura M+I 55,552,000 46.8% 20.0%
Orcopura Inferred 50,830,000 43.7% 20.0%
Aurora South Inferred 6,970,000 49.7% 30.0%
Aurora North Inferred 9,080,000 49.0% 30.0%
Huillque Inferred 55,990,000 53.5% 30.0%
Cuervo plans to complete a new 43-101 resource report in February, 2013 to reflect the current drill program at the Bob 1 zone.
Cuervo Resources Inc. has 37,684,750 shares outstanding (79,173,023 fully diluted).
For further information, please contact Mr. Brian Berner, CEO and a Director of the Company, at 416-203-3957 ext 201 or Mr. Tom Berner, Investor Relations, at 416-203-3957 ext 202. Additional information about Cuervo can be found at the Company's website at www.cuervoresources.com.
The Canadian National Stock Exchange (CNSX Markets Inc.) has neither approved nor disapproved of the contents of this press release.
The term "iron ore" used within this document means rocks or deposits containing compounds from which iron can be extracted. This is not meant to imply that the contained iron can necessarily be extracted at a profit. This document also contains "forward-looking information" within the meaning of Canadian securities legislation. This information and these statements, referred to herein as "forward-looking statements" are made as of the date of this news release or as of the date of the effective date of information described in this news release, as applicable. Forward-looking statements relate to future events or future performance and reflect current estimates, predictions, expectations or beliefs regarding future events and include, without limitation, statements with respect to: (i) the amount of mineral reserves and mineral resources; (ii) expected grades of iron mineralization; (iii) the timing of the Company's exploration programs and results therefrom; and (iv) the status of negotiations. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects", "anticipates", "plans", "projects", "estimates", "envisages", "assumes", "intends", "strategy", "goals", "objectives" or variations thereof or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements.
All forward-looking statements are based on the Company's current beliefs as well as various assumptions made by and information currently available to them. These assumptions include, without limitation: (i) the presence of and continuity of iron mineralization at modeled grades; (ii) the capacities of various machinery and equipment; (iii) the availability of personnel, machinery and equipment; (iv) the availability and timing of laboratory analysis and reporting on drill core samples; (v) weather conditions; (vi) reasonable contingency requirements; and (vii) receipt of community and regulatory approvals on acceptable terms.
By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that estimates, forecasts, projections and other forward-looking statements will not be achieved or that assumptions do not reflect future experience. We caution readers not to place undue reliance on these forward-looking statements as a number of important factors could cause the actual outcomes to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates assumptions and intentions expressed in such forward-looking statements. These risk factors may be generally stated as the risk that the assumptions and estimates expressed above do not occur, but specifically include, without limitation, risks relating to variations in the mineral content within the material identified as mineral reserves and mineral resources from that predicted; variations in rates of recovery and extraction; developments in world metals and minerals markets; risks relating to fluctuations in the Canadian dollar relative to other currencies; increases in the estimated capital and operating costs or unanticipated costs; difficulties attracting the necessary work force; increases in financing costs or adverse changes to the terms of available financing, if any; tax rates or royalties being greater than assumed; changes in mineral exploration plans due to changes in logistical, technical or other factors, changes in project parameters as plans continue to be refined; risks relating to receipt of regulatory and community approvals; political risks, adverse weather conditions; risks associated with the extreme topography of the areas in which mineral exploration is conducted; operational and infrastructure risks; and the additional risks described in the Company’s annual financial statements and management’s discussion and analysis for the year ended March 31, 2011. The foregoing list of factors that may affect future results is not exhaustive.
When relying on our forward-looking statements, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Company does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by the Company or on behalf of the Company, except as required by law.
247 Major Street, Toronto, ON,
M5S 2L5 Canada
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Source: Cuervo Resources Inc. (FE - CNSX) (CRR - FWB) www.cuervoresources.com
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