VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 25, 2013) - New World Resource Corp. (TSX VENTURE:NW)(FRANKFURT:NWU) ("New World" or the "Company") announces that it has entered into a letter of intent ("LOI") with Sociedad Contractual Minera El Tesoro ("the Owner") relating to the El Tesoro copper-gold project ("El Tesoro" or "the Project"), located approximately 250 kilometres ("km") north of Santiago and 35 km from the town of Illapel, in Region IV of Chile. Under the terms of the proposed transaction, New World will have the option to acquire up to 100% of the Project.
El Tesoro is located within the Coastal Cordillera of Chile which contains numerous world-class mineral deposits. The Project is host to geological features similar to the archetype Candelaria iron-oxide-copper-gold ("IOCG") deposit, as well as the pre-feasibility stage El Espino IOCG deposit, which contains approximately 1.467 billion pounds of copper and 755,000 ounces of gold, and is owned by Sociedad Punta del Cobre (Pucobre). The El Espino deposit is located approximately 3.5 km to the south of El Tesoro. The mineralized system at El Tesoro includes a 1.8 x 1.5 km alteration zone with a strong potassic-altered centre and albite-silica halo. A near-surface meso-thermal vein system hosts gold, copper, and iron mineralization with an extensive history of artisanal mining activity.
El Tesoro covers an area of 320 hectares with year round road access, and rail and high-tension power within close proximity. The Illapel region has a long history of mining, with artisanal copper and gold mining continuing to the present day.
Company President & CEO, John Lando, commented: "This transaction will allow New World to initiate its new direction with a low-risk opportunity in a well-established mining-friendly jurisdiction rich in mineral resources. The El Tesoro project is positioned in an excellent location within a highly prospective geological setting."
Under the LOI, the parties have agreed to a 90-day exclusivity period to complete a due diligence and negotiate the terms of a definitive agreement. The agreement will provide for New World to make cash payments of US$600,000 to the Owner and incur US$1 million in exploration expenditures over two years, complete a Feasibility Study on the Project and make a cash payment to the Owner equal to US$0.50 per tonne of proven and probable reserves as defined in the Feasibility Study. Upon completion of the payments and exploration expenditures, New World will own 100% of the Project.
The Company may acquire 100% of the Project at any time during the first four years of the Option Agreement by electing to pay US$15 million to the Owner. The Owner will retain a 1% net smelter royalty ("NSR"), except in the case New World elects to acquire a 100% interest in the Project by paying US$15 million. In such case, the NSR will be subsequently increased from 1% to 1.5%.
The proposed transaction will be subject to certain conditions including the completion of proper due diligence and regulatory approval, including the approval of the TSX Venture Exchange.
Quality Control and Assurance
Exploration work on the El Tesoro project will be under the supervision of Brian McEwen, P.Geol., the Company's Chief Operating Officer, who is a "qualified person", as defined in NI 43-101, and is responsible for the preparation of the technical information contained in this news release.
About New World
New World Resource Corp. is a Canadian based mining exploration company focused on building a strong, diversified project portfolio within the Americas. The Company's projects include the Lipeña/Bonete copper-gold project and the Pastos Grandes lithium brine project in Bolivia.
NEW WORLD RESOURCE CORP.
John Lando, President
This news release includes "forward-looking information", as such term is defined in applicable securities laws. The forward-looking information includes, without limitation, statements regarding the completion of the proposed transaction. This forward-looking information is given as of the date of this news release. Users of forward-looking information are cautioned that actual results may vary from the forward-looking information contained herein. While the Company has based this forward-looking information on its expectations about future events as at the date that such information was prepared, the information is not a guarantee of the Company's future performance and is subject to risks, uncertainties, assumptions and other factors which could cause actual results to differ materially from future results expressed or implied by such forward-looking information. Such factors and assumptions include, amongst others, the effects of general economic conditions, the price of lithium, changing foreign exchange rates and actions by government authorities, uncertainties associated with legal proceedings and negotiations and misjudgments in the course of preparing forward-looking information. In addition, there are also known and unknown risk factors which could cause the Company's actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by the forward-looking information. Known risk factors include, among others, risks relating to exploration and development; the ability of the Company to obtain additional financing; the Company's limited operating history; the need to comply with environmental and governmental regulations; political and economic instability and general civil unrest in Bolivia; potential defects in title to the properties; fluctuations in currency exchange rates; fluctuating prices of commodities; operating hazards and risks; competition; and other risks and uncertainties. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company is under no obligation to update or alter any forward-looking information except as required under applicable securities laws.
Neither the 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 news release.