Southern Empire Acquires Remaining 25% Interest IN Oro CRUZ GOLD Project
SOUTHERN EMPIRE RESOURCES CORP.
TSX-V: SMP
Frankfurt: 5RE
NEWS RELEASE
June 26, 2020
SOUTHERN EMPIRE ACQUIRES REMAINING 25% INTEREST IN ORO CRUZ GOLD PROJECT
Southern
Empire
Resources
Corp.
(“Southern
Empire”;
TSX-V:
SMP;
Frankfurt:
5RE)
is
pleased
to
announce
that
it
has
consolidated
its
interest
in
the
Oro
Cruz
Gold
Project
by
entering
into
an
option
agreement
(the
“Option
Agreement”)
with
its
Chairman,
Ronald
Netolitzky,
which
allows
Southern
Empire to acquire the remaining 25% interest in the Oro Cruz Property.
Highlights of the Transaction
●
Southern Empire can now acquire a 100% interest in the Oro Cruz Gold Project.
●
Option
acquisition
price
for
the
remaining
25%
is
CAD
$440,000,
which
is
Mr.
Netolitzky’s
cost.
“Southern
Empire
now
has the
ability
to
consolidate
a
100%
interest
in
the
Oro
Cruz
Gold
Project
after
all
underlying
option
agreements
are
exercised.
We
are
very
grateful
to
Ron
for
providing
us
the
opportunity
to
acquire
this
remaining
25%
interest
not
only
at
no
increase
to
his
original
acquisition
cost,
but
also
over
a
3-year
time
period.
Given
the
historical,
high-grade
gold
values
encountered
at
Oro
Cruz,
we
view
it
as
one
of
the
pre-eminent
exploration
and
development
gold
projects in the southwestern United States” stated Dale Wallster, CEO of Southern Empire.
Terms of the Transaction
Pursuant
to
the
terms
of
the
Option
Agreement,
Southern
Empire
may
acquire
the
remaining
25%
interest in the Oro Cruz Property by paying a total of CAD $440,000 to Mr. Netolitzky as follows:
●
CAD $140,000 on receipt of TSX Venture Exchange approval,
●
CAD $100,000 on the first anniversary,
●
CAD $100,000 on the second anniversary, and
●
CAD $100,000 on the third anniversary.
Southern
Empire
may,
at
its
sole
option,
satisfy
the
option
payments
by
the
issuance
of
common
shares at the five-day volume weighted average price prior to the issuance of such shares.
Mr.
Netolitzky,
Chairman
and
a
director,
is
a
related
party
to
Southern
Empire.
As
a
result,
the
transaction
is
subject
to
Multilateral
Instrument
61-101
–
Protection
of
Minority
Holders
in
Special
Transactions
.
The
transaction
was
reviewed
and
unanimously
approved
by
Southern
Empire’s
Board
of
Directors.
The
acquisition
will
be
exempt
from
the
formal
valuation
and
minority
approval
requirements
of
Multilateral
Instrument
61-101
–
Protection
of
Minority
Holders
in
Special
Transactions
as
the
fair
market
value
of
the
transaction
and
the
consideration
paid
will
not
exceed
25% of Southern Empire’s market capitalization.
The Option Agreement is subject to acceptance by the TSX Venture Exchange.
Qualified Person (QP)
The
scientific
and
technical
information
contained
in
this
news
release
has
been
prepared,
reviewed,
verified
and
approved
by
David
Tupper,
P.Geo.
(British
Columbia),
Southern
Empire's
VP
of
Exploration
and
a
Qualified
Person
within
the
context
of
Canadian
Securities
Administrators'
National Instrument 43-101;
Standards of Disclosure for Mineral Projects
.
About Southern Empire Resources Corp.
Southern
Empire
is
focused
on
the
acquisition,
exploration
and
development
of
gold
deposits
in
North America, currently having two projects in the American southwest.
In
the
Cargo
Muchacho
mountains
of
Imperial
County,
southeast
California,
Southern
Empire’s
2,160
hectare
(5,338
acre)
Oro
Cruz
Gold
Project
is
located
approximately
22.5
kilometres
(14
miles)
southeast
of
the
Mesquite
gold
mine
of
Equinox
Gold
Corp.
With
a
history
that
includes
extensive
drilling
and
large-scale
open
pit
and
underground
mining
that
was
suspended
during
the
gold
market
downturn
in
1996,
the
Oro
Cruz
Property
hosts
numerous
exploration
targets
in
addition
to
a
high-grade
oxide
gold
zone
that,
based
on
the
historical
mine
records,
is
amenable
to
conventional
heap leach extractive methods.
Southern
Empire
also
owns
an
85%
interest
in
the
817
hectare
(2,020
acre)
Eastgate
Gold
Project,
located 81 kilometres (50 miles) southeast of the city of Fallon in Churchill County, Nevada.
At
Eastgate,
Southern
Empire
has
just
completed
six
HQ-size
core
drill
holes
totalling
906
metres
(2,972
feet)
in
a
first-pass
drill
program
of
the
Double
Eagle
high-grade
gold/silver
epithermal
vein
system;
one
of
several
steeply
dipping,
subparallel
low-sulphidation,
quartz-adularia
epithermal
vein
systems
occurring
on
the
property.
This
drilling
was
designed
to
confirm
historical
Reverse
Circulation
(“RC”)
drill
assay
results
reported
by
past
operators
of
the
property
and
to
drill
test
extensions
of
known
gold
mineralization
with
modest
step-out
drill
holes.
All
core
is
now
being
logged
and
selective
samples
are
being
submitted
to
ALS
USA
Inc.’s
laboratories
in
Reno,
Nevada.
Assay
results
will
be
released
after
they
become
available
and
permitting
for
the
next
phase
of
drilling has been initiated.
On behalf of the Board of Directors,
Dale Wallster, CEO and Director
Southern Empire Resources Corp.
For further information please visit
www.smp.gold
and review our
SEDAR filings
or contact:
Lubica Keighery at (778) 889-5476,
Cautionary Notice on Forward-Looking Information
Information
set
forth
in
this
news
release
may
contain
forward-looking
statements
that
are
based
on
assumptions
as
of
the
date
of
this
news
release.
All
statements,
other
than
statements
of
historical
fact,
that
address
activities,
events
or
developments
that
Southern
Empire
expects
or
anticipates
will
or
may
occur
in
the
future
are
forward-looking
statements
that
reflect
management’s
current
estimates,
beliefs,
intentions
and
expectations.
They
are
not
guarantees
of
future
performance.
Southern
Empire
cautions
that
all
forward-looking
statements
are
inherently
uncertain
and
that
actual
performance
may
be
affected
by
a
number
of
material
factors,
many
of
which
are
beyond
Southern
Empire’s
control.
Such
factors
include,
among
other
things:
risks
and
uncertainties
relating
to
Southern
Empire’s
limited
operating
history
and
the
need
to
comply
with
environmental
and
governmental
regulations.
Accordingly,
actual
and
future
events,
conditions
and
results
may
differ
materially
from
the
estimates,
beliefs,
intentions
and
expectations
expressed
or
implied
in
the
forward-looking
information.
Except
as
required
under
applicable
securities
legislation,
Southern
Empire
undertakes
no
obligation to publicly update or revise forward-looking statements or information.
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.