Published: April 7, 2016 |

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Serengeti Resources Inc. has successfully closed its deal with DAEWOO Minerals Canada Corp. (DMC), a 100 percent owned Canadian subsidiary of POSCO DAEWOO Corp, whereby POSCO DAEWOO may earn up to a 35 percent interest in Serengeti’s Kwanika copper-gold project by providing funding of $ 8.2 million. The initial $1.2 million investment has been paid into the joint venture account from which Serengeti will receive an up-front cash operating fee of $400,000.

“This transaction is a game changer for Serengeti, enabling renewed activity on our principal project, while allowing the company to maintain a majority interest in Kwanika and potentially securing the bulk of our general operating funds for the next several years. In the context of the current junior mining market, we believe this is a great deal for Serengeti and our shareholders and we are excited by the prospect of once again being able to move the project forward while mitigating risk and reducing future dilution to our shareholder’s interests,” said David W Moore, president and CEO of Serengeti Resources.

DMC is committed to fund $1.2 million in expenditures in the first year to earn an initial 5 percent interest in the Kwanika project of which $0.8 million will be for project expenditures and $0.4 million paid directly to Serengeti as an operator’s fee. DMC may earn an additional 30 percent interest in the project by funding an additional $7 million over the subsequent two years for aggregate expenditures of $8.2 million over three years to earn an aggregate 35 percent project interest.

Serengeti remains as project operator, so long as it maintains a majority interest and is entitled to charge a 10 percent operator’s fee on expenditures beyond the initial $1.2 million investment by DMC. Serengeti, in addition to maintaining its project interest, would be granted a 1 percent NSR royalty if its project interest is diluted below 50 percent and an additional 0.5 percent NSR royalty if its interest is diluted below 33 1/3 percent, subject to partial buyback provisions to DMC. DMC to have certain concentrate offtake rights from production on the project, subject to Serengeti’s ability to enter into separate streaming arrangements. On proceeding with the second stage Kwanika earn-in, DMC has the right to select and earn into one of Serengeti’s other exploration properties by funding additional expenditures, which property would be nominated at Serengeti’s sole discretion.

Work on the project this year will include a re-evaluation of the previously completed resource estimate and scoping level PEA study. The objective is to develop the best model for copper and gold grade distribution-particularly within the higher grade Central Zone-and to identify and optimize the mining extraction method to maximize project economics. In addition, a number of high quality exploration targets will be tested in the immediate deposit area in a 2200 meter drill program scheduled for the 2016 field season. Success on any one of these initiatives, could have positive implications for the project.

About Serengeti Resources
Serengeti is a mineral exploration company managed by an experienced team of professionals with a solid track record of exploration success. The company is currently advancing its Kwanika copper-gold project and exploring its extensive portfolio of properties in the highly prospective Quesnel Trough of British Columbia. A number of these other projects are available for option-joint venture. Serengeti currently has 63.1 million shares issued and outstanding or 81.1 million shares on a fully diluted basis.

To stop by Serengeti Resources’ website, CLICK HERE

About POSCO DAEWOO
POSCO DAEWOO Corp. (previously Daewoo International Corp.), a member of the POSCO Family, is a leading international trader, investor, and project organizer in Korea. It has 109 overseas units in 58 countries. POSCO DAEWOO is actively participating in the natural resources sector, with investments in dozens of global projects including Block A-1/A-3 gas field (operator) in Myanmar, Ambatovy nickel project in Madagascar and Narrabri Coal in Australia.

To stop by POSCO DAEWOO’s website, CLICK HERE

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