VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 1, 2012) - Salmon River Resources Ltd. (TSX VENTURE:SAL) (together with its subsidiaries individually and jointly referred to as "Salmon River" or the "Company") is pleased to announce that it has further extended the previously announced payment terms on its agreement to acquire a 100% interest in the shares of Treppo Grande Iron Pty Ltd. (the "Acquisition"), a private Australian company which holds five granted tenements in the Yilgarn Craton of southwestern Australia, including the highly prospective Treppo Grande iron ore prospects. Under the terms of the extension agreement for the Acquisition (the "Extension Agreement"), the Vendor has agreed to extend the date for the next payment of A$4,000,000 to no later than 3 September 2012.
A copy of the Extension Agreement will be posted on Sedar.
As noted previously, during the last several months, Salmon River has also been involved in extensive negotiations with a number of strategic and financial investors regarding funding for payments under the terms of the Acquisition Agreement and for the furthering of the Treppo Grande Project. The Company continues in discussions with these potential investors regarding financing to fund the payments to the Vendor and the exploration program and working capital requirements.
The Company remains confident of the ultimate success of these discussions, especially given the potential of the Treppo Grande Iron Project. Any financing proposals will be subject to approval by the TSX Venture Exchange and may require shareholder approvals. There can be no assurance that these discussions will be successfully completed or required approvals obtained.
ABOUT SALMON RIVER RESOURCES LTD.
Salmon River Resources Limited (TSX VENTURE:SAL) is a mineral exploration company engaged in the exploration for and development of commercial deposits of iron ore in Western Australia. It exercised its option to acquire five tenements in the Yilgarn region of Western Australia including the Treppo Grande iron ore project, approximately 210 km northwest of Kalgoorlie, comprising three tenements covering approximately 396.7 km2. Completion of the acquisition of the tenements is subject to certain conditions, including payment of approximately A$100 million to the vendor. For further information see our website at www.salmonriver.com.au.
This press release contains forward-looking statements that are based on the beliefs of management and reflect Salmon River's current expectations. This press release relates to the extension of terms for the Treppo Grande Iron acquisition, further exploration and future financing requirements. The forward-looking statements are based on certain assumptions, which could change materially in the future, including the assumption that the current negotiations will lead to definitive agreements, that the transactions and financings contemplated herein will be completed, that Salmon River will be able to complete on its exercise of the Treppo Grande option and that the Treppo Grande property will ever be developed. By their nature, forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include the risk that the definitive agreements contemplated may not be completed, that Salmon River may not complete the financings in the amounts contemplated and that the Company may not complete on its exercise of the Treppo Grande acquisition. 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, investors should not place undue reliance on forward-looking information. Forward-looking information is provided as of the date of this press release, and the Company assumes no obligation to update or revise them to reflect new events or circumstances, except as required in accordance with applicable laws.
Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the Company's periodic filings with Canadian securities regulatory authorities. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Company does not assume the obligation to update any forward-looking statement.
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.