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Solid Resources Ltd. (TSXV:SRW), thru its wholly-owned subsidiary, Solid Mines España, S.A.U., has acquired all of the issued and outstanding shares of Lorente y Pallares, S.L., a private Spanish company that holds all of the rights and interests associated with the Cehegin 62 iron ore concessions in south-eastern Spain. The purchase price for the acquisition was EUR135,000, plus the repayment of mortgage debt in the amount of EUR45,000.
As quoted in the press release:
The purchase price for the acquisition was EUR135,000, plus the repayment of mortgage debt in the amount of EUR45,000. In addition a security payment in the amount of EUR45,861.14 was given to a financial institution for future environmental restoration purposes and is now registered as an asset to SME. These amounts were paid on the closing representing a total price of EUR225,861.14.
SME will be required to pay an additional amount of up to EUR2,700,000 once a mining permit is submitted and granted for all 62 concessions, an improvement over the previously announced cost of EUR3,000,000. If SME proceeds with the new magnetite mining project, this additional payment would be made within four months from the decision notice date on which the permits or licenses are issued. This additional amount will be reduced to EUR1,800,000 if SME proceeds with the project, but does not obtain all mining permits for the total 62 concessions in its initial submission for permitting. No net royalties will be due on any proceeds from commercialization of the project.
Solid Resources CEO and President, Greg Pendura, said:
Completing the transition from the previously announced Option Agreement of October 22, 2012 of sixty-two (62) iron ore concessions to acquiring 100% ownership is a significant milestone for the Company as we progress with our plans to quickly bring the existing Cehegin resources into production.
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