Crazy Horse Resources has entered into a letter agreement with Solfotara Mining Corp to option and acquire all of Solfotara’s interests in the advanced-stage Basay project, the Kilong-Olao/Bayosen projects, and the prospective Biliran gold project. The company aims to acquire Solfotara’s ownership of the shares of Canex Resources, Basay Copper and Adanacex Resources.

Under the terms of the letter agreement, Crazy Horse may, at its option, acquire the interest by issuing 10 million common shares on exercise of the purchase option. The interest is subject to a one-time single payment amount of 10 million shares in the event of the approval of a mining permit on any of the projects’ deemed assets of the companies.

Crazy Horse’s CEO Dev Randhawa says, “The resource sector is currently a buyers’ market for companies with an experienced management team and a strong track record of success. The acquisition of Solfotara’s shares and property rights at such attractive metrics adds considerable value for shareholders and we look forward to developing these highly prospective projects.”

The Basay project is about 600km southeast of Manila on the island of Negros. The project consists of an EP, which is currently under renewal application, over an area of 1808 hectares. The Basay mine operated from 1979 to 1983 as an open pit and underground copper operation at a daily rate of up to 24,000 tonnes.

Between March 2011 and June 2012, Copper Development Corp conducted a diamond drilling program of 69 holes for 33,825 metres. Assay highlights from the Southeast zone, a pipe like mineralized body approximately 200 metres in diameter and at least 500 metres in depth, include 261 metres @ 1.08% copper and 408 metres @ 0.65% copper.

The Kilong-Olao/Bayosen project consists of several EP applications in the province of Abra. Marcopper Mining Corp concentrated exploration in the Kilong-Olao area in a 1km x 1km zone where 25 drill holes were completed. The Bayosen copper anomaly of about 2.3km x 1km in dimension remains untested by drilling.

The Biliran Copper/Gold Project was historically mined for native sulphur. It is underlain by Quaternary volcanics and active fumarole fields which are being drilled for geothermal power. There has been very little detailed geologic work done in the area and a careful mapping program is required to fully understand the volcanic and structural setting. The property is an active magmatic-derived geothermal system and systems like this may contain significant metal contents.

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