Valterra Options Swift Katie Project to Riverside-Antofagasta Alliance

Valterra Options Swift Katie Project to Riverside-Antofagasta Alliance 
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 10/31/13 -- Valterra
Resource Corporation ("Valterra") (TSX VENTURE:VQA)(FRANKFURT:3VA)
reported today that it has entered into an option agreement with
Riverside Resources (BC) Inc. ("Riverside") for exploration and
development of the Swift Katie Project in southeast British Columbia.
The agreement will be undertaken by the Riverside Exploration
Alliance with a wholly owned subsidiary of Antofagasta plc
("Antofagasta") ("Alliance"). The Alliance focuses on identifying new
large copper deposits throughout the primary copper belts of British
Columbia, Canada.  
Commented Lawrence Page Q.C., company President, "The agreement with
Riverside Resources Inc. and its Alliance partner Antofagasta plc
exemplifies the manner in which a junior explorer can enhance
shareholder value through a relationship with well-funded and
experienced exploration and development companies. Valterra initially
acquired a 100% interest in the claims through payment of
approximately $2.06 million in aggregate acquisition and exploration
costs. We are pleased that Riverside and Antofagasta, one of the
world's largest copper mining companies, selected the Swift Katie
project for the optional expenditure of $5 million on exploration
expenditures. A residual 20% interest for Valterra in a joint venture
to develop the property into commercial production has the potential
to significantly enhance shareholder value over a reasonably short
time period." 
In consideration for paying the $40,940 outstanding Advanced Minimum
Royalty ("AMR") payment owed to the original owner by Valterra, the
Alliance will be granted a six (6) month due diligence period to
further evaluate the Property. Upon the completion of the due
diligence period, if the Alliance decides to proceed with the Option,
it can acquire an 80% interest in the Property by incurring the
following exploration expenditures as outlined in the table below: 

Year                                                                Property
On or before the 1st anniversary of Due Diligence Expiry Date  $     350,000
On or before the 2nd anniversary of Due Diligence Expiry Date  $   1,000,000
On or before the 3rd anniversary of Due Diligence Expiry Date  $   2,500,000
On or before the 4th anniversary of Due Diligence Expiry Date  $   5,000,000

Once property expenditures of at least $5,000,000 have been incurred,
the Option will be exercised in full with an undivided 80% interest
earned by the Alliance. 
Additional Agreement Details: 
In addition to incurring $5,000,000 in exploration expenditures over
four (4) years, the Alliance has agreed to assume the future AMR
payments to the original private ownership group that optioned the
Swift Katie property to Valterra. The AMR payments are to be made on
June 30, 2014, December 31, 2014 and annually on December 31 on each
year thereafter. The amount of each AMR payment is $50,000, adjusted
annually in accordance with the Canadian Consumer Price Index with a
base date of December 31, 2006. AMR payments are deductible from
future payments of net smelter returns.  
The original option agreement with the underlying party also provides
for a 3% Net Smelter Return (NSR) royalty. At any time, the Alliance
can purchase two-thirds (2%) of this NSR for $3,000,000. 
Riverside and Valterra confirm their mutual intention to conclude and
execute the Definitive Agreement on or before the date that is 45
days from the Due Diligence Expiry Date, provided however that if the
parties do not execute the Definitive Agreement by such date this
letter agreement will remain binding on the parties and will continue
to govern their relationship and operations on the Property. 
Joint Venture: 
Upon the exercise of the Option, Valterra and the Alliance shall be
deemed to have formed a joint venture in which the Valterra shall
hold an initial 20% interest and the Alliance shall hold an initial
80% interest (the "Joint Venture"). The formal agreement governing
the Joint Venture, shall provide that in the event that Valterra's
interest in the Joint Venture is reduced to less than 10%, Valterra
will be deemed to have conveyed its interest to the other party in
consideration of the right to receive a 2% NSR, which can be
purchased by the other party at any time prior to the commencement of
commercial production for $2,000,000. 
Property Details: 
The Swift Katie project is a large 80 sq km Cu-Au-Ag property located
near Salmo, British Columbia, in the Nelson Mining District. The
project has been tested with over 70 drill holes (approx. 20,000m),
and represents an intermediate stage exploration target in the
prolific Rossland Group of the Quesnel Terrane.  
Since acquisition in 2007 Valterra, through its own efforts and joint
venture, has completed 4,866 metres of diamond drilling in 15 holes,
a 505-line kilometre DIGHEM EM-Magnetic airborne geophysical survey,
surface mapping and has conducted preliminary in-house engineering on
the project. 
Historical drilling, in part verified by Valterra, has identified
three potential zones of copper gold mineralization which cover an
aggregate area measuring approximately 1,900 metres of overall strike
length by 900 metres width and up to 600 metres depth. The property
is centered on a large annular magnetic anomaly interpreted as one of
three large volcanic centers located in the Nelson-Salmo region of
the Rossland Group volcanics. Multiple untested soil, IP, Magnetic
and resistivity targets, in close proximity to known mineralization,
remain to be tested on the property. 
The Swift Katie property is well located in southeastern British
Columbia and features several significant economic advantages toward
the continued exploration and development of the project including:
proximity to power and transportation networks in southern British
Columbia; a nearby and experienced workforce, private tenure surface
title and gentle topography. 
As part of the initial due diligence period, Riverside has mobilized
crews and is proceeding with a surface exploration program on the
About Valterra Resource Corporation 
Valterra is a Manex Resource Group Company. The group provides
expertise in exploration, administration, and corporate development
services for Valterra's mineral properties located in British
Columbia and Ontario. Valterra is focused on early stage properties
with the potential to host large deposits, in regions with excellent
infrastructure. Over the last several years, Valterra has acquired
and is exploring several key projects including "Star-Toughnut",
"Swift Katie" and "Bobcaygeon" which are located near roads, rail,
power, and resource communities in Canada. 
Robert Macdonald, MSc., P.Geo., is the Qualified Person responsible
for reviewing the technical information presented in this release. 
On behalf of the Board of Directors, 
Lawrence Page Q.C., President, Valterra Resource Corporation 
For further information, please visit Valterra's website at 
Neither 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 news release may contain forward-looking statements including
but not limited to comments regarding the timing and content of
upcoming work programs, geological interpretations, receipt of
property titles, potential mineral recovery processes, etc.
Forward-looking statements address future events and conditions and
therefore involve inherent risks and uncertainties. Actual results
may differ materially from those currently anticipated in such
statements. These statements are based on a number of assumptions,
including, but not limited to, assumptions regarding general economic
conditions, interest rates, commodity markets, regulatory and
governmental approvals for Valterra Resource Corporation's projects,
and the availability of financing for Valterra Resource Corporation's
development projects on reasonable terms. Factors that could cause
actual results to differ materially from those in forward looking
statements include market prices, exploitation and exploration
successes, the timing and receipt of government and regulatory
approvals, and continued availability of capital and financing and
general economic, market or business conditions. Valterra Resource
Corporation does not assume any obligation to update or revise its
forward-looking statements, whether as a result of new information,
future events or otherwise, except to the extent required by
applicable law.
Valterra Resource Corporation
1.888.456.1112 or 604.684.9384
Press spacebar to pause and continue. Press esc to stop.