Far Resources Amends Option Agreement with Redline Minerals
August 19, 2015 – Vancouver, B.C.: Far Resources Ltd. (CSE:FAT) (“Far” or “the Company”) has amended its October 17, 2014 option agreement (the "Amended Option Agreement") with Redline Minerals Inc. (“Redline”), Redline Mining Corporation ("RMC"), and Southwest Land & Exploration Inc. ("SWLE") (collectively, the “Optionors”) to acquire up to an 80% interest in and to 105 unpatented and 2 patented mineral claims located in Sierra County, New Mexico, U.S.A. known as the LG/Ivan and Little Granite unpatented mineral claims and the Ivanhoe/Emporia patented mineral claims (collectively the "Property") as previously announced in its news release of October 21, 2014.
Under the terms of the Amended Option Agreement, Far retains the option to acquire up to an 80% interest in the property by meeting certain terms to acquire an initial 50% interest in the Property (the “Initial Option”) after which it can then earn up to an additional 30% interest in the Property from the Optionors by exercising its right to such additional option.
To date, the Company has completed an initial site visit to the Property as announced on March 17, 2014; has made cash payments to Redline totaling $80,000 and has issued 800,000 common shares in the equity of the Company to satisfy its obligations up to and including those due as of January 15, 2015. Under the Amended Option Agreement, the Company’s total cash commitment for the initial Option has been reduced by $120,000, bringing it to $200,000 from $320,000 and the cash payments due subsequent to January 15, 2015 have been amended as follows:
(i) the additional $80,000 cash payment that was due on or before June 1, 2015 has been reduced to a payment of $40,000 due on or before October 15, 2015; and
(ii) the additional $80,000 cash payment that was due on or before June 1, 2016 has been reduced to a payment of $40,000 due on or before June 1, 2016; and
(iii) the additional $80,000 cash payment that was due on or before June 1, 2017 has been reduced to a payment of $40,000 due on or before June 1, 2017.
The requirement for exploration expenses to meet the Initial Option requirements has also been amended; it has been reduced by $700,000, going from $1,000,000 to $300,000. The $300,000 expenditures must be incurred on or before October 17, 2017, the third anniversary of the effective date of the original option agreement. All other terms remain the same and are described in the Company’s disclosure documents available on SEDAR (www.sedar.com).
About the Company
Far Resources Ltd. is an exploration company, publicly traded on the Canadian Securities Exchange under the symbol FAT, focused on the identification and development of high potential mineral opportunities in stable jurisdictions.
ON BEHALF OF THE BOARD OF DIRECTORS OF
FAR RESOURCES LTD.
Keith C. Anderson, President
The Canadian Securities Exchange has neither approved nor disapproved the contents of this news release and accepts no responsibility for the adequacy or accuracy hereof.
This news release contains forward-looking statements, which relate to future events or future performance and reflect management’s current expectations and assumptions. Such forward -looking statements reflect management’s current beliefs and are based on assumptions made by and information currently available to the Company. Readers are cautioned that these forward looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected. Specifically, the Option Agreement is subject to numerous conditions and there are no assurances that all conditions will be satisfied or waived or that the acquisition of the Property will be successfully completed on the terms and conditions contemplated herein or at all. All of the forward-looking statements made in this news release are qualified by these cautionary statements and those in our continuous disclosure filings available on SEDAR at www.sedar.com. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances save as required under applicable securities legislation.