Crazy Horse Resources Inc a Vancouver based mineral exploration company provides the following update on its acquisition of 100% interest in the Taysan Copper Gold Porphyry Project in Batangas Province of Philippines further to its news release of June 15th 2010.
The Taysan Project consists of 2 exploration permits and 3 exploration permit applications covering an aggregate area of 11,309 hectares hosting an advanced copper gold porphyry deposit.
1. Acquisition and Project Update;
The Company has concluded its due diligence on the Acquisition including the receipt and acceptance of an independent report and legal opinions on title to the Project. A copy of the independent technical report authored by R Sowerby of Geosynthesis Private Limited and entitled A Technical Review of Exploration and Resource Estimates of the Taysan Project, Batangas Province, Philippines in collaboration with Mining Associates Inc of Australia can be accessed under the Company's profile at www.sedar.com.
The Company anticipates closing of the Acquisition to occur on or before September 30th 2010 subject to the receipt of shareholder approval and TSX Venture Exchange acceptance and completion of the a private placement of up to 9,333,333 units of the Company at a price of CAD 0.75 per unit for gross proceeds of up to CAD 7,000,000.
Requests for proposals to conduct 6 months scoping study have been issued to consultants covering the required disciplines to bring the currently non NI 43 101 compliant resource up to Scoping Study level standard of project evaluation as described in the independent technical report. Three core drilling rigs have been reserved from Quest Exploration Drilling with a fourth rig committed after one month of operations. A 21 person management team is in place with all project budgets and positions identified.
2. Proposed Acquisition of Taysan Project;
Under the terms of Mineral Property Purchase Agreement dated June 15th 2010, the Company has agreed subject to the satisfaction of certain conditions precedent including the receipt of Exchange acceptance, to acquire all of Taysan Copper Corporation's 100% interest in the Project in exchange for;
(a). The issue of 20,000,000 common shares of the Company;
(b). The payment of US$1,700,000 and
(c). The grant of 1.5% net smelter royalty. The Acquisition is arm's length and if completed will constitute a reverse take over under the Exchange's policies.
