Serengeti Reports Signature of a Definitive Agreement with POSCO Daewoo for the Kwanika Project
NR: 2017-13
Serengeti Reports Signature of a Definitive Agreement
with POSCO Daewoo for the Kwanika Project
Vancouver, B.C., October 26, 2017, Serengeti Resour ces Inc. (SIR: TSX-V) reports that further to its press release dated
October 3, 2017, Serengeti, POSCO Daewoo Corporation (“PDC”) and Daewoo Minerals Canada (“DMC”) have e ntered into and
signed a binding share subscription agreement and s ettled the terms of the definitive shareholders joi nt venture agreement
(“DJV”). The DJV provides for DMC (a BC corporatio n) to become the parties’ private joint venture cor poration, which will be
renamed Kwanika Copper Corporation (“KCC”). KCC sh all hold the entire interest of the Kwanika copper gold project located in
the Quesnel Trough of British Columbia (the "Project").
Wonchan Seo, the Group Leader of PDC’s Mineral Deve lopment Group stated, "We are very pleased to enter into the definitive
agreement to continue cooperation with Serengeti Re sources. We believe that the complementary partner ship will successfully
lead this fascinating Project towards the next mile stones of its development. PDC will fully support and cooperate on the fruitful
execution of the PFS program and the steps following."
Serengeti President & CEO David W. Moore further st ated, “Finalizing and signing the definitive agreem ent with POSCO
Daewoo I believe adds significant value to both the Project and Serengeti as a company. The agreement provides financial
stability and a clear path forward for the Project. We look forward to working with a global partner of POSCO Daewoo’s caliber,
having both financial and trading capabilities whic h will be very advantageous to our shareholders as both companies advance
the Project towards our ultimate goal of putting the Project into production”.
Pursuant to the binding share subscription agreemen t, PDC has agreed, as a condition of closing, to im mediately fund $7.0
million into KCC and as a result of its cash contri bution, will receive a total of 8.2 million common shares of KCC (representing
35% of the total issued shares of KCC). Contempora neously, Serengeti will contribute its 95% particip ating interest in the
Project to KCC, in exchange for 15,228,571 common shares of KCC (representing 65% of the total issued shares of KCC).
The DJV defines the terms of the incorporated joint venture relationship between Serengeti and PDC and establishes KCC to
hold the respective interests of Serengeti and PDC. The closing of the transaction is subject to the completion of certain
conditions, including approval by the TSX Venture E xchange, which are standard for commercial transact ions of a similar nature
and is anticipated to take place within the next 30 days.
About Serengeti Resources Inc.
Serengeti is a mineral exploration company managed by an experienced team of professionals with a soli d track record of
exploration success. Serengeti is currently advanc ing its Kwanika copper-gold project in partnership with Daewoo Minerals
Canada and exploring its extensive portfolio of pro perties in the highly prospective Quesnel Trough of British Columbia. A
number of these other projects are available for op tion or joint venture and additional information ca n be found on the
Company’s website at www.serengetiresources.com.
About POSCO Daewoo Corporation.
POSCO Daewoo Corporation. (previously Daewoo Intern ational Corp.), a member of the POSCO Family, is a leading
international trader, investor, and project organiz er in Korea. It has 109 overseas units in 58 countr ies. POSCO DAEWOO is
actively participating in the natural resources sec tor, with investments in dozens of global projects including Block A-1/A-3 gas
field (operator) in Myanmar, Wetar copper project in Indonesia and Narrabri Coal in Australia.
ON BEHALF OF THE BOARD
David W. Moore ,
P. Geo., President, CEO and Director
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Cautionary Statement
This document contains “forward-looking statements” within the meaning of applicable Canadian securiti es regulations. All statements other
than statements of historical fact herein, includin g, without limitation, statements regarding explora tion plans and other future plans and
objectives, are forward-looking statements that inv olve various risks and uncertainties. There can be no assurance that such statements will
prove to be accurate and future events and actual r esults could differ materially from those anticipat ed in such statements. Important factors
that could cause actual results to differ materiall y from our expectations as well as a comprehensive list of risk factors are disclosed in the
Company’s documents filed from time to time via SED AR with the Canadian regulatory agencies to whose p olicies we are bound. Forward-
looking statements are based on the estimates and o pinions of management on the date the statements ar e made, and we do not undertake
any obligation to update forward-looking statements should conditions or our estimates change, other t han as required by law and readers are
further advised not to place undue reliance on forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
For further information, please contact:
Investor Relations: Paradox Public Relations Tel: 514-341-0408 Toll free (in North America) 1-866-460-0408
Email [email protected]
Serengeti Resources Inc. Suite 520 – 800 West Pende r St., Vancouver, BC V6C 2V6
Tel: 604-605-1300 Email: [email protected] Website: www.serengetiresources.com