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MONTREAL, QUEBEC–(Marketwire – Sept. 21, 2011) – Majescor Resources Inc. (“Majescor” or the “Company“) (TSX VENTURE:MJX) is pleased to report that on September 15, 2011, the Company has received formal notice by Sunridge Gold Corp. (“Sunridge”) that Sunridge had fulfilled its obligations pursuant to the Option Agreement dated September 15, 2008 and Amendment Agreement dated June 19, 2009 (the “Agreement”), by incurring $2,000,000 in work expenditures on the Besakoa volcanogenic-massive-sulphide (VMS) project, southern Madagascar, and by issuing 300,000 Sunridge common shares to the Company. Consequently, Sunridge is deemed to have acquired a 50% interest in Daraina Exploration S.a.r.l. (“Daraina”), a registered Malagasy corporation and a 100%-held subsidiary of Majescor, the owner of the Besakoa project.
Majescor is also pleased to report that Sunridge has completed an initial 5,000 meter core drilling program at Besakoa. Previous drilling by Majescor in late 2006 confirmed that the “Main” historical prospect, a massive and semi-massive Cu-Zn-Au-Ag sulfide deposit, is a continuous, 7-12 m-thick lens extending over 700 m along strike and open at depth. The new drilling program by Sunridge tested a series of high priority VMS-style targets which have been defined using airborne and ground geophysical surveys (electromagnetics, magnetics, gravity and audio-magneto-tellurics) soil geochemical surveys, geological and structural mapping, and VMS gossan prospecting (see Majescor Press release dated June 23, 2011). Core samples from the drill program have been shipped to an external laboratory facility for multi-element geochemical analysis. Results from the drill program are expected in October.
About the Besakoa Project
The Besakoa property covers over 60 square kilometers, located in south-central Madagascar and accessible by road from the port city of Toliara. Geologically, the Besakoa property is is underlain by Neoproterozoic volcano-sedimentary shield rocks, a geological setting with strong similarities to Sunridge’s Asmara Project in Eritrea where Sunridge has been successful in defining large amounts of copper, zinc and gold in a series VMS deposits. The same exploration techniques used on the Asmara project were used to define the drill targets at Besakoa and both Majescor and Sunridge management believes that the Besakoa project may represent a new emerging VMS district.
Terms of the Agreement
Under the terms of the September 15, 2008 Agreement and the Amendment Agreement dated June 19, 2009 (the “Agreement”), Majescor granted Sunridge the sole and exclusive option (the “Initial Option”) to acquire an undivided 50% interest in Daraina by incurring total work expenditures of $2,000,000 on the Besakoa project before September 15, 2011 and by issuing Majescor a total of 500,000 Common Shares of Sunridge.
Sunridge can obtain an additional 25% by expending an additional $2,500,000 by the end of the third anniversary of the Agreement and by issuing an additional 500,000 common shares. Upon acquiring a 75% interest in Daraina, Sunridge will have a one-year period in which to elect to acquire the remaining 25% interest at the fair value determined at that time by an independent valuation or as agreed between the parties. Once agreed, Sunridge can pay the purchase price in cash or, at the election of Sunridge, in the equivalent value of Sunridge common shares subject to regulatory approval. If Sunridge acquires a 100% interest in Daraina, Majescor retains a 1% net smelter return royalty on the Besakoa project, half of which can be purchased by Sunridge for $1,000,000. If the Besakoa project is brought into commercial production, Sunridge will be obliged to pay the original owners of the project $1,000,000.
About Majescor Resources Inc.
Majescor Resources Inc. is a junior explorer focusing on emerging mineral districts. In addition to the Besakoa VMS project, Majescor’s project portfolio includes the SOMINE Copper-Gold project in Haiti (majority-held by SIMACT Alliance Copper-Gold Inc., a wholly-owned subsidiary of Majescor) and the Mistassini uranium exploration project in Quebec (under Joint-Venture: 40 % Majescor and 60% Strateco Resources Inc.).
This press release as been reviewed and approved by C. Tucker Barrie, Ph.D., P. Geo., Vice-President, Exploration for Majescor who is a qualified person under National Instrument 43-101.
To find out more about Majescor Resources Inc. (TSX VENTURE:MJX), SIMACT Alliance Copper Gold Inc., the SOMINE copper-gold project as well as the Company’s Mistassini uranium and Besakoa copper/gold properties, please visit our website at www.majescor.com.
Forward-Looking Statements
This News Release may contain or refer to “forward-looking statements” which reflect Management’s expectations regarding the Company’s future growth, results of operations, performance and business prospects and opportunities. These statements reflect Management’s current beliefs at the time of this news release and are based on information currently available to Management. All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of Majescor Resources inc., are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Management’s expectations are exploration risks detailed herein and from time to time in the filings made by the Company with securities regulators.
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.
