Sanatana Earns 50% Interest in Watershed Property
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 11/28/12 -- Sanatana
Resources Inc. ("Sanatana" or the "Company") (TSX VENTURE:STA)
announces further to its news release of September 12, 2012 (the
"September NR") that the Company has issued a further 1,500,000
common shares to Trelawney Augen Acquisition Corp. ("TAAC") in
connection with the option and joint venture agreement (the "Option
and JV Agreement") for the Watershed Property. Such common shares
have a hold period expiring on March 16, 2013 as required by
applicable securities laws.
Under the terms of the Option and JV Agreement in order for Sanatana
to earn a 50% interest (the "50% Interest") in the Watershed Property
it was required to (i) pay TAAC $150,000, (ii) issue TAAC a total of
5,000,000 common shares in staged intervals with the last share
issuance to be made on or before March 23, 2013 and (iii) incur work
costs on the Watershed Property of not less than $5,000,000 in staged
intervals with the last work cost requirement to be incurred on or
before March 23, 2014. Sanatana has satisfied all earn-in
requirements and that it has exercised and has acquired the 50%
Interest. As disclosed in the September NR the mineral claims
comprising the Watershed Property are legally registered in
Sanatana's name and taking into account Sanatana's exercise of the
50% Interest the mineral claims comprising the Watershed Property are
now beneficially held 50% by Sanatana and 50% by TAAC.
Peter Miles, CEO of Sanatana, stated, "Acquiring the 50% Interest in
the Watershed Property is a significant step forward for Sanatana. We
are assessing our options and will determine whether it is in the
best interests of shareholders to immediately move forward with the
joint venture or to exercise our right to acquire an additional 1%
undivided interest in the Watershed Property and then enter into the
Additional 1% Interest
Pursuant to the terms of the Option and JV Agreement, Sanatana has
the right to earn a further 1% interest in the Watershed Property,
for a total undivided interest of 51% (the "51% Interest"). In order
to earn the 51% Interest Sanatana must prepare and deliver to TAAC a
pre-feasibility study on or before March 23, 2016. Sanatana is
ing its options in this regard and has until March 23, 2016
to decide whether to exercise its right to acquire the 51% Interest.
If Sanatana exercises its right to acquire the 51% Interest the
parties would on the date of such exercise form a joint venture (the
"Joint Venture") to further explore the Watershed Property on terms
described in the September NR. Alternatively, if Sanatana surrenders
its right to acquire the 51% Interest the parties would form the
Joint Venture on the date Sanatana surrendered its right to acquire
the 51% Interest and in any event form the Joint Venture not later
than March 23, 2016.
Prior to the formation of the Joint Venture which could, at
Sanatana's election, be as late as March 23, 2016, Sanatana has
elected to continue to spend work costs on the Watershed Property.
Under the terms of the Option and JV Agreement Sanatana will continue
to be credited for such work costs. Specifically, any work costs made
or incurred by Sanatana in excess of the work costs required to earn
its interest in the Watershed Property will be credited to Sanatana's
contribution to the first work program after formation of the Joint
Venture and will not automatically dilute the participating interest
of TAAC on formation. Under the terms of the Option and JV Agreement
Sanatana has the right to be the manager (the "Manager") of the Joint
Venture when it is formed and will manage the work program(s) as
directed by a management committee (the "Management Committee") set
up based on the parties' respective interests in the Joint Venture.
Ultimately if Sanatana acquires the 51% Interest (and assuming that
it does not dilute its interest in the Joint Venture) Sanatana will
control the Management Committee and thereby control the instructions
the Management Committee gives to the Manager to establish programs.
Sanatana has spent excess work costs to date of approximately
$1,000,000 and expects to spend not less than an additional
$1,984,455 (the "Additional Expenditures") on the Watershed Property
before December 31, 2013. The Additional Expenditures represent the
funds Sanatana recently raised in a flow-through private placement
(see Sanatana's news release dated November 9, 2012).
Additional Information Regarding the Option and JV Agreement
The Option and JV Agreement was originally announced on February 16,
2011 and was accepted for filing by the TSX Venture Exchange on March
23, 2011. Copies of the news releases issued by Sanatana and Augen
Gold Corp. (as it then was) are available on SEDAR at www.sedar.com
under Sanatana's SEDAR profile and TAAC's SEDAR profile respectively.
A copy of the Option and JV Agreement was also posted to Sanatana's
SEDAR profile on May 8, 2012.
About the Company
Sanatana Resources Inc. is a Canadian mineral exploration and
development company focused on its Watershed property in Ontario.
Sanatana entered into an option and joint venture agreement with
Trelawney Augen Acquisition Corp. (formerly Augen Gold Corp.)
("TAAC") which grants Sanatana an option to acquire up to 51% of the
Watershed property. On June 21, 2012 IAMGOLD Corporation completed
its acquisition of Trelawney Mining and Exploration Inc. and became
the sole indirect shareholders of TAAC. With an experienced
management team and board of directors, the Company has the ability
required to identify, develop and fund economic mineral properties.
Sanatana is based in Vancouver and is listed on the TSX Venture
Exchange (TSX VENTURE:STA).
SANATANA RESOURCES INC.
Peter Miles, President and Chief Executive Officer
Neither TSX Venture Exchange nor its Regulations Services Provider
(as that term is defined in policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
Sanatana Resources Inc.
Mr. Peter Miles
President and Chief Executive Officer
604-408-6680 or Toll Free: 1-877-881-6680
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