Tigray Resources Inc Acquires Option on Adyabo Licenses
Tigrai Online, Oct. 21, 2012
In December 2011 Tigray entered into an agreement to acquire up to an undivided 80% interest in the Adyabo property in two phases over a three-year period. The Adyabo property covers 595 square kilometres immediately west of Tigray's Harvest project and includes the Adi Dairo concession in the north and the West Shire concession in the south.
Gold is found through out Tigrai and gold exploration has exploded in the recent years in Tigrai State. Huge deposits of gold are found in Shahagne Adwa, Werkiamba Tembien, Lailai and Tahtai Adyabo Shire.
Tigray Resources Inc. (TSX VENTURE:TIG) ("Tigray" or the "Company") is pleased to announce it has acquired the option on the Adyabo property (formerly Harvest North properties) in Ethiopia, increasing its land position to 865 square kilometres, and has identified new targets.
In December 2011 Tigray Resources Inc entered into an agreement to acquire up to an undivided 80% interest in the Adyabo property in two phases over a three-year period. The Adyabo property covers 595 square kilometres immediately west of Tigray's Harvest project and includes the Adi Dairo concession in the north and the West Shire concession in the south. The land package is considered prospective for volcanogenic massive sulfide (VMS) and orogenic (structurally controlled) gold deposits, and contains numerous alluvial, elluvial and bedrock gold workings as well as several large gold and gold-copper-arsenic anomalies defined by previous companies' stream-sediment sampling programs. When combined with the Harvest concessions, Tigray holds 865 square kilometres of exploration ground in the region.
Adyabo is located in the locally underexplored area of the Arabian Nubian Shield. The geology of the project area includes variably sheared and deformed mafic and ultramafic rocks intruded by multiple generations of gabbro, pyroxenite, granite and granodiorite. Large shear zones contain several bedrock gold workings. Previous work on the concessions included stream sediment sampling, 300 metre spaced airborne electromagnetic and magnetic surveys, traverse rock-chip sampling, and reconnaissance mapping.
During due diligence on the properties, Tigray reviewed the geology of several sections of the project including Mato Bula, Sentraley and Adi Gozomo, the highlight being Mato Bula.
Adyabo Agreement
Under the terms of the agreement, Tigray has the option to acquire up to an undivided 80% interest in the Adyabo property in two phases. The first phase allows Tigray Resources Inc to earn a 55% interest in exchange for (a) the payment of $300,000 in cash and the issuance of 300,000 Tigray shares on receipt of TSX Venture Exchange (the "Exchange") approval, and (b) an additional payment of $300,000 in cash and the issuance of an additional 300,000 Tigray shares on the first anniversary of the Exchange approval date. The second phase will allow Tigray to earn an additional 25% interest in exchange for (a) the payment of $300,000 in cash and the issuance of an additional 1,000,000 Tigray shares on the second anniversary of the Exchange approval date, and (b) the issuance of an additional 1,000,000 Tigray shares on the third anniversary of the Exchange approval date. Further, on receipt of a positive feasibility study, Tigray will issue an additional 1,000,000 shares to the optionor, and upon commencement of commercial production, Tigray Resources Inc will issue an additional 500,000 shares to the optionor. The optionor may elect to convert the remaining 20% interest into a 2% net smelter royalty (NSR), and Tigray will have the option to buy back 1% of the NSR for $5 million in cash.
About Tigray Resources Inc
Tigray Resources Inc is a Canadian mineral exploration company focused on discovery through advancing early-stage mineral projects in Ethiopia. Tigray's key property is the 70%-owned Harvest polymetallic VMS exploration project, which covers 270 square kilometres in the Tigray region of Ethiopia, 600 kilometres north-northwest of the capital city of Addis Ababa. The Company recently entered into an agreement to acquire up to an 80% interest in the Adyabo property covering 595 square kilometres immediately west of the Harvest project. Tigray's shares trade on the TSX Venture Exchange under the symbol TIG.
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