Antananarivo, Madagascar (April 12, 2011) -- Silvore Fox Minerals Corp. (the "Corporation" or "Silvore Fox" -- TSX Venture -- "SFX") is pleased to announce the signing of a Letter of Intent with Gaea Mining Co Ltd. Sarl ("GAEA") pursuant to which the Corporation and GAEA intend to negotiate the terms of a definitive agreement (the "Definitive Agreement") under which the Corporation would earn a 55% interest in two potentially high grade Copper properties in the Maindelanu region of western Madagascar (an island nation located in the south east of the African Continent and south west of the Indian Ocean).
The two properties the Corporation intends to option consist of the Copper Meteor property in Maintnaro area ("Southern Properties"), which cover an area of 206.25 km², and the Copper Volcano property in Tambohorano area ("Northern Properties") with an approximate area of 1,500 km².
Highlights of the Property and current terms of the Letter of Intent:
• Silvore Fox and GAEA intend to form a new Madagascar joint venture company with headquarters in the city of Antananarivo. Silvore Fox will have a 55% shareholding interest and GAEA will have 45% The joint venture company will have 100% interest in both properties, with no NSR.
• Silvore Fox intends to fund exploration and development on the properties up to a maximum of US$5.5 million within a 3 year period following the execution of the Definitive Agreement. After Silvore Fox has reached that level of investment it is anticipated the activities of the Joint Venture company will be funded by Silvore Fox and GAEA on a pro rata basis of their respective shareholding interest.
• Silvore Fox will pay to GAEA, for its 55% interest in the joint venture company, US$ 4.5 million in cash and shares of Silvore Fox over a 30 month period following the verification of claims for the Southern Property being transferred from GAEA to the joint venture company in a manner acceptable to Silvore Fox. GAEA can elect to receive a maximum of 50% of each installment payment in cash, or 100% in Silvore Fox shares, at their discretion. While the Corporation currently has sufficient cash on hand to meet that potential requirement it does anticipate the need to raise additional working capital over the 30 month period to fund exploration activity, potential acquisitions, and general corporate purposes that may include cash payments to GAEA.
To complete the purchase agreement Silvore Fox will issue to GAEA a further 7,700,000 shares of Silvore Fox on the 30 month anniversary date following the verification of claims for the Southern Property being transferred from GAEA to the joint venture company in a manner acceptable to Silvore Fox.
• In the Northern Properties there are two volcanic vent structures with basalt and gabbro outcrops, and copper mineralization is widely visible.
• In recent years local communities have reportedly exported 3000 -- 5000 tons of rich ore with an average grade of 35% Cu. (Exploration Project Brief, Madaca Resources Inc. courtesy Madagascar Ministry of Mines, 2010)
• The Letter of Intent is subject to regulatory approval and the approval of the Board of Silvore Fox.
Mr. Dave Owens P.Geo, a qualified person as defined by National Instrument 43-101, has reviewed and approved the technical information contained in this news release.
"When Silvore Fox completed the signing of a strategic partnership agreement with our partners, Beijing Donia Resource Co. Ltd ("Donia"), in November of 2010 we knew it would transform our company and open up many new doors. The year 2011 has seen the beginning of an evolution in Silvore Fox from a provincial company to an international company. We are focused on high tonne potential base metal exploration projects within a diversified portfolio of properties that attempts to minimize political risk without limiting potential returns for our shareholders.
The letter of intent to option 100% of the Winston Lake area zinc-copper-silver property, announced February 8, 2011, marked the first transaction that Silvore Fox has closed since their strategic partnership with Donia. With an historic resource of 600,000 tonnes of 21.2% zinc, 1% copper (Inmet Mining, 1998) and the potential for discovering new high grade primary and secondary deposits in the area surrounding the Pick Lake deposit we feel this property could be a game-changer for Silvore Fox. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources, and Silvore Fox is not treating the historical estimate as a current mineral resource. The historical estimate should not be relied upon, and the Corporation's focus is on exploring for new deposits in the area.
This Joint Venture opportunity we are announcing today in Madagascar is the second transaction closed since the signing of our partnership agreement with Donia, and represents another potentially high impact property acquisition for the company. We have been told that grab samples in the area of our Southern Properties have shown grades as high as 50+% Copper, including native copper. We recognize that grab samples are selective by nature and are unlikely to represent average grades on the property so we are anxious to get in there and confirm this for ourselves. We intend to aggressively explore the existing high-grade veins to test the depth of these occurrences and perform a variety of other testing to assess the potential size of the mineralization on these properties during the May -- November working season for the area. We have also been informed, by Donia, that they have access to drill rigs in Madagascar at this time which could help to expedite our work program here. The Northern Properties, with a similar geological setting, will also be worked on this season.
Silvore Fox has a great partner in GAEA who brings a wealth of local knowledge and experience to the table. Our management and board feel it is essential to have a strong local partner for projects in developing economies like Madagascar, as evidenced by the 45% interest retained by GAEA, and we expect to establish many positive relationships within the local community as we move forward.
Further details as we progress will be made available including our intended exploration plans for the May to November exploration season.
We believe this is definitely an exciting time for Silvore Fox investors, management, and employees."
- Harry Cabrita, President & CEO
Silvore Fox Minerals Corp.
Geological information on the Madagascar properties will be available as it is produced in the coming weeks at our Silvore Fox website.
Harold J. Cabrita
President and CEO
Dr. Jingbin Wang
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 RELEASE.
This announcement contains forward-looking information and forward-looking statements (collectively "forward-looking information") under applicable securities laws, relating, but not limited to the Corporation's expectations, intensions, plans and beliefs. Forward-looking information can often be identified by forward-looking words such as 'anticipate', 'believe', 'expect', 'goal', 'plan', 'intend', 'estimate', 'may' and 'will' or similar words suggesting future outcomes or other expectations including with respect to the signing of the Definitive Agreement by the Corporation and GAEA, the funding by the Corporation of the exploration and development on the properties and the payment by the Corporation to GAEA for the interest in the joint venture company. Such forward-looking information is based on current expectations that involve a number of known and unknown risks and uncertainties that may cause actual results to differ materially from those expressed or implied by the forward-looking information. Factors that could cause actual results to differ materially from any forward-looking information include, but are not limited to, the risks that the parties will not proceed with the transaction, the actual terms of the transaction will differ from those currently contemplated and the transaction will not be successfully completed for any reason, capital and operating costs varying significantly from estimates, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, inflation, delays in the development of projects, uncertainties relating to the interpretation of the geology, and unanticipated operational or technical difficulties and other factors. Such forward-looking information is based on a number of assumptions, including but not limited to, the ability of the Corporation to raise sufficient capital to pay the exploration and development costs on the properties and to pay for the interest in the joint venture company, the availability of skilled labour, availability of equipment, and future capital and operating costs. Should one or more risks and uncertainties materialize or should any assumptions prove incorrect, then actual results could vary materially from those expressed or implied in the forward-looking information and accordingly, readers are cautioned not to place undue reliance on this forward-looking information. The Corporation does not assume the obligation to revise or update this forward-looking information after the date of this announcement or to revise such information to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws.