Morro Bay Resources Limited: Files Year End Financial Statements
Calgary - Morro Bay Resources Ltd. (“Morro Bay” or the “Company”) (TSX-V: MRB) announces it has filed its audited financial statements for the year ended September 30, 2014 (“Financial Statements”) and the related management’s discussion and analysis of those financial statements (“MD&A”). Copies of the Financial Statements and MD&A can be viewed at www.sedar.com or on the Company’s website at www.morrobayresources.com.John Zang CEO of Morro Bay stated "the exploration expenditures Morro Bay made on the Peñoles Project during our first year of ownership uncovered a new significant discovery of a silver target at Jesus Maria. We were encouraged further when the latest drill program showed the presence of significant mineralization at San Rafael. These discoveries along with the previously identified gold mineralization at El Capitan make the Peñoles Project worth advancing forward".
During fiscal 2014, the Company expended over $1,250,000 on the Peñoles Project located in the state of Durango, Mexico, fulfilling the project spending requirement outlined in the option agreement with Riverside Resources Ltd (“Riverside”). Results of the drilling programs were released on June 9, 2014, June 23, 1014 and October 24, 2014, indicating the presence of multiple near-surface mineralized zones. Management is very encouraged by the potential of the Peñoles Project and plans further drilling in 2015.
Subsequent to year end, Morro Bay re-negotiated and received an extension on its option agreement with Riverside for the Peñoles Project. The amended agreement removes the former requirement for the Company to make a cash payment of approximately $1.35 million to Riverside and expires on March 31, 2015. In order for the Company to earn a 51% interest in the project Morro Bay is required to make payment of $750,000 to Riverside by March 31, 2015 (payable in cash or Morro Bay shares at Morro Bay’s election provided that if the value of Morro Bay shares is less than $0.05 such payment must be made in cash).
Upon exercise of the option a joint venture between Morro Bay and Riverside will be formed. That joint venture will see:
- Morro Bay be appointed as operator of the joint venture;
- Morro Bay is required to incur Joint Venture Expenditures of $750,000 for each of the first three years (any amounts expended over $750,000 will be credited toward the following years expenditure requirements);
- Riverside shall have a credit of $100,000 and US$1,250,000 against the first Joint Venture Expenditures incurred by the Joint Venture; and
- Should the Joint Venture fail to incur Joint Venture Expenditures of at least $750,000 in each of the first three years, Riverside will have to right to acquire 100% of Morro Bay’s Interest by returning to Morro Bay 80% of the common shares issued by Morro Bay to Riverside.
In addition, assuming the exercise of the 51% option, the Company retains the right to earn an additional 14% (65% total interest) in the Peñoles Project without change to the previously agreed upon terms. Refer to the MD&A for detailed disclosure.
As at September 30, 2014, the Company had cash and cash equivalents of $533,748 ($2,509,271 as at September 30, 2013). Current cash and cash equivalents stand at approximately $267,000.
Qualified Person and Quality Control/Quality Assurance
The scientific and technical data contained in this news release pertaining to the Peñoles Project was prepared under the supervision of Carl von Einsiedel, PGeo. who is responsible for ensuring that the geologic information provided in this news release is accurate Mr. von Einsiedel is the exploration manager for Morro Bay and acts as a “non independent qualified person” as defined under National Instrument 43-101 Standards of Disclosure for Mineral Projects.
About Morro Bay
Morro Bay is a junior mineral exploration company based in Calgary, Alberta, Canada, focused on the exploration for precious metals in Mexico. Morro Bay's business strategy is to build shareholder value by rapidly advancing the Peñoles Project in Mexico through the resource delineation stage.
Further Information
For further information please contact:
Denny Chow
Chief Financial Officer
dchow@morrobayresources.com
403 719 8269
Patrick Piette
Investor Relations
ppiette@morrobayresources.com
416 526 9911
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Information in this news release may contain forward looking information. Statements containing forward looking information express, as at the date of this news release, the Company's plans, estimates, forecasts, projections, expectations, or beliefs as to future events or results and are believed to be reasonable based on information currently available to the company.
There can be no assurance that forward-looking statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. Readers should not place undue reliance on forward-looking information.
The forward-looking information contained in this news release is as of the date hereof and Morro Bay does not undertake any obligation to update publicly or to revise any of the included forward looking statements contained herein, except as required by applicable law. The forward-looking statements contained herein are expressly qualified by this cautionary statement.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any state in the United States in which such offer, solicitation or sale would be unlawful. The securities referred to herein have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
To view this press release as a PDF file, click onto the following link:
public://news_release_pdf/morrobay01282015.pdf
Source: Morro Bay Resources Ltd. (TSX Venture:MRB) http://www.morrobayresources.com/
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