Tao Minerals Ltd. ("Tao Minerals") (OTCBB:TAOL) announced today that it has executed a non-binding Letter of Intent with Minera Tao S.A. to acquire the Camelia mining property located in southwest Colombia's Narino province. Preliminary phase one samples of the Camelia property indicate world-class potential gold.
Per the non-binding LOI executed today, Tao Minerals will purchase the Camelia property outright for $200,000 and two million company shares with $100,000 paid approximately July 1 or closing, and a further $100,000 payable October 1, 2006 with two million shares to be issued on closing, for a total price of approximately $1.7 million cash and stock.
The company's Chief Geologist, Duncan Bain, working with Project Geologist, Carlos Vera, recently completed additional sampling work on the property and have determined that this project has excellent exposure with little overburden, allowing close inspection of the vein systems.
"Moving ahead with our acquisition of the Camelia property is a very significant achievement," commented Jim Sikora, President of Tao Minerals. "We are extremely pleased with the mine's potential and believe it will have a major impact on our company's growth."
The Camelia project is located in close proximity to Tao Minerals' Golondrina property, where the company is moving forward with exploration based on highly favorable sampling results. The company is fast-tracking preparations to the Golondrina site to facilitate its drill program after final results from the recent trenching program indicate several possible high grade gold zones on the property with multiple high grade gold values up to 72.87 grams per tonne.
Tao Minerals is taking advantage of the convergence of a strong gold market plus ripe conditions in Colombia including a stable and growing economy, favorable mining legislation, foreign investment protection and gold-rich soil. Colombia is South America's largest recorded gold producer, yielding more than 125 million ounces. But it is also the most under-explored of the geologically prospective countries in South America, with most local miners lacking the technology and resources to maximize production.
About Tao Minerals Ltd. (OTCBB:TAOL)
Tao Minerals Ltd. is a gold exploration company focused on acquiring and developing mining properties in Colombia. The company has acquired and begun sampling at its Golondrina gold and silver property where final results from a recent trenching program indicate multiple high grade gold values up to 72.87 grams per tonne. Tao Minerals in the final stage of acquiring two additional gold mining projects in southwestern Colombia with world-class potential. These acquisitions are intended to complement the company's Golondrina project and would allow for a large-scale processing plant in the area.
Notice Regarding Forward Looking Statements
This news release contains "forward-looking statements", as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward- looking statements include, among other things, the acquisition of a majority interest in two properties located in Narino Department, Southwest Colombia. Actual results could differ from those projected in any forward- looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with mineral exploration. We are not in control of metals prices and these could vary to make development uneconomic. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form
10-KSB for the last reported fiscal year, our quarterly reports on Form 10-QSB and other periodic reports filed from time-to-time with the Securities and Exchange Commission.
For further information, please contact: James Sikora, President, Tao Minerals Oficina 618 Ventura Mall Carrerra 32 No1B Sur 51 Medellin, Colombia