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 Thu Mar 13, 2008
Helio Options Eight Namibian Licences to TransAfrican Minerals

 

Helio Resource Corp. (the "Company" or "Helio") (TSX-V: HRC) is pleased to announce that it has signed a binding Letter of Intent with TransAfrican Minerals Limited ("TransAfrican") in connection with eight licences in Namibia, whereby TransAfrican has the option of earning up to a 70% interest in the licences by solely funding a bankable feasibility study. The three stage deal is summarised below:

Stage 1 - to earn a 51% interest

Date for
Completion
Cash Payments
to be Made
Minimum Exploration and Development
Expenditures to be Incurred
Upon Signing C$100,0001 -
End of Year 12 C$100,000 C$750,0001
End of Year 22 C$100,000 C$1,000,000
End of Year 32 C$200,000 C$1,250,000
End of Year 42 C$500,000 C$2,000,000
TOTAL C$1,000,000 C$5,000,000
  1. These items, being the cash payment of C$100,000 and the minimum expenditure requirement of C$750,000 are firm binding commitments on TransAfrican;
  2. From execution of this LOI by the parties.
Stage 2 - to earn an additional 9% interest (for a total of 60%)

TransAfrican may earn an additional 9% interest in the licences by spending an additional C$5,000,000 on exploration within 24 months of successful completion of Stage 1.

Stage 3 - to earn an additional 10% Interest (for a total of 70%)

TransAfrican may earn an additional 10% interest by solely funding a Bankable Feasibility Study within 48 months of successful completion of Stage 2.

THE LICENCES

The licences that fall under this agreement are Tevrede North, Tevrede West, Tevrede South, Honib, Oasis, Huab, Borwa, and Fransfontein. All of these licences are located within the lower Proterozoic-aged Kamanjab Inlier. Work completed by Helio to date has identified compelling drill targets on the following licences:
  • Tevrede North (copper-zinc-silver-gold)
  • Tevrede South (copper-gold)
  • Honib (zinc-lead)
  • Oasis (lead-zinc-copper-silver)
More detailed project summaries are available on the Company's website at www.helioresource.com.

ABOUT TRANSAFRICAN MINERALS LIMITED

TransAfrican Minerals Limited is an emerging, privately-funded global mining company, led by a strong management team made up of former senior investment bankers and mining executives with more than 200 years of combined experience funding, developing and managing global mining projects.

The company is led by Mr. Mohamed Matongo as its Deputy Chairman and President. The Chief Executive Officer is Mr Robert S. Stewart.

Mr. Matongo was formerly a senior banker (Sr. Vice President) with Citibank in London, Kuala Lumpur, Abhu Dhabi and Johannesburg. He founded Bayete Resources Pty Ltd. four years ago and was the CEO and deputy Chairman until 2006, when Bayete Resources Pty Ltd sold its interests to Troy International UK Limited. Mr. Matongo also formed Tegeta Exploration and Mining Pty Ltd, a successful coal producer. During the last 5 years he has facilitated the creation of many emerging (BEE) companies in South Africa, and he specialises in deal origination, conceptualisation, mergers and acquisitions.

Mr Stewart is a mining and financial executive with 30 years of senior experience in Africa and around the world. As former Chief Representative of Bechtel, Chairman of Ocelot International, TANGAS, CAMGAS, America Mineral Fields, Congo Chamber of Mines and International Cobalt, he initiated, financed and developed several major mining, natural gas and power projects in East, Central and Southern Africa.

TransAfrican is building a global presence in precious, base and strategic metals with future acquisitions targeted in Africa, Canada, Australia and Asia. Through acquisitions and joint ventures, TransAfrican has built up a portfolio of mining and exploration projects (copper, uranium, cobalt, gold and coal) in Zambia, DRC, Mozambique, Madagascar, Mali, Indonesia, Australia, Mongolia and Argentina.

MANAGEMENT COMMENT

Management of Helio is very pleased with this transaction. It addresses one of the major business objectives of the Company, which is to find well funded joint venture partners for all of the Companies projects outside of Tanzania. This approach allows for the advancement of Helio's high quality exploration targets in Namibia, and enables the Company to focus its treasury on the development of the SMP Gold Project in Tanzania

Helio now has 17 Namibian licences under option to well-funded partners.

Helio Resource Corp. is a dynamic, technically-driven mineral exploration company, focused on high-quality project generation in southern Africa. Helio is actively exploring 27 prospective gold, base-metal and diamond properties in Namibia, Botswana, Mozambique and Tanzania. The main focus for the Company is the development of the SMP Gold Project in Tanzania.

For additional information, please contact Richard Williams or Irene Dorsman at +1 604 638 8007 or by e-mail to richard@helioresource.com or irene@helioresource.com and Robert S. Stewart at TransAfrican Minerals Limited at 1 480 361 5283 or by email at rss1@interopag.com.

ON BEHALF OF THE BOARD OF DIRECTORS
HELIO RESOURCE CORP

"Richard D. Williams"
Richard D. Williams, P.Geo
CEO
"Chris MacKenzie"
Christopher J. MacKenzie, C.Geol.
COO


ON BEHALF OF THE BOARD OF DIRECTORS
TRANSAFRICAN MINERALS LIMITED

"Mohamed Matongo"
Mohamed Matongo
President
"Robert S. Stewart"
Robert S. Stewart
CEO

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
 
 

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