Terra Firma Resources Inc. (TSX-V: TFR) (the "Company" or "Terra Firma") announces it has entered into a non-binding offer to option (the "Option") a 49% interest in the two Collins mineral claims and a 43% interest in other claims including the American Boy, Janelle, Sunrise and Sidina mineral claims (collectively, the "Property"), from TAD Mineral Exploration Inc. ("TAD") (TSX.V: TJ) subject to a 1.5% net smelter royalty payable (the "NSR").
Subject to the conditions set out below, TAD is prepared to grant the Option in the Property to subject to the NSR in consideration for Terra Firma:
-Allotting and issuing 10,000,000 common shares in the capital of Terra Firma upon the date of grant of the Option following the satisfaction of all conditions as set out in the definitive agreement (the "Effective Date"), including the approval of the Option by the TSX Venture Exchange;
-Incurring qualified expenditures with respect to the Property of at least Cdn$10,000 on or prior to the date that is 13 months from the Effective Date;
-Incurring additional qualified expenditures with respect to the Property of at least Cdn$240,000 (Cdn$250,000 in the aggregate) on or prior to the date that is 36 months from the Effective Date; and
-Incurring all costs and expenses to keep the Property in good standing for the duration of the Option and for a period of six months following abandonment or termination of the Option or the definitive agreement.
Upon the due exercise of the Option, Terra Firma and TAD agree to enter into a joint venture agreement on industry standard terms to govern the relationship between the parties with respect to advancement of the Property. At this time there is no guarantee that the Option will receive all approvals needed to be executed.
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On Behalf of Terra Firma Resources
Brian Buchanan, President and Director
For additional information please contact:
Tom Steer, Investor Communications
Tel: (604) 681-5566 E-mail: email@example.com
Neither the 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 news release.