Far Resources and Redline Minerals to Advance New Mexico Project
June 28, 2016 – Vancouver, B.C.: Far Resources Ltd. (CSE:FAT) (“Far” or “the Company”) has further amended its 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 20 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 known as the Winston Property (collectively the "Property"). See Far Resources’ news release dated February 1, 2016 for details.
Under the terms of the Amended Option Agreement, upon Far Resources having earned an initial 50% interest, it may elect to earn a further 30% interest by paying the Optionor an additional $180,000 cash, (reduced from $240,000 in the original agreement); issuing an additional 1,500,000 shares; and incurring an additional $900,000 (reduced from $1,500,000 in the original agreement) in Exploration Expenditures within three years of the election date.
Further to the update provided in the news release dated February 1, 2016, the Company has initiated permitting for an exploration program on the Little Granite claims to verify the results from work carried out in the 1980s in the Little Granite mine area. Sampling carried out by Far Resources in late 2013 confirmed the presence of abundant strongly mineralised epithermal vein material on the mine dumps, assumed to have been excavated during the decline development in the early 1980s. Two samples thought to be representative of the main style of quartz veining returned values of 179 g/t silver and 2.9 g/t gold and 170 g/t silver and 6.7 g/t gold respectively, while a third sample of grey, finer-grained quartz material returned values of 1,439 g/t silver and 25.2 g/t gold.
Limited drilling in 1984 returned several high grade vein intercepts (see news release dated February 1, 2016 for details). These results pre-date the implementation of NI 43-101, and since the work was not conducted under the supervision of a QP, cannot be relied upon and are presented as historical information only. However, the sampling conducted by Far suggests the results are credible and that further work using modern techniques and supervision is warranted.
Keith Anderson, President and CEO of Far Resources commented, “We are pleased that, together with Redline, we have been able to amend the agreement and create an environment that allows us to move this project forward.”
To date, the Company has made cash payments to Redline totaling $120,000 and has issued an aggregate total of 1,400,000 Common shares in the equity of the Company to satisfy its obligations, which are currently up to date. All other terms remain the same and are described in the Company’s disclosure documents available on SEDAR (www.sedar.com).
The technical content of this news release has been reviewed and approved by Lindsay Bottomer, P.Geo., an independent director of Far Resources Ltd. and a Qualified Person under NI 43-101.
The Company also wishes to announce that it has granted 500,000 stock options to certain officers, directors and consultants of the Company (the “Options”). The Options are exercisable into common shares (the “Shares”) of the Company at a price of $0.10 per Share for a period of five years from the date of grant.
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.