VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 15, 2012) - Valhalla Resources Ltd. (TSX VENTURE:VH) ("Valhalla" or the "Company") is pleased to announce that it has entered into a Letter of Intent (the "LOI") with Kenz Madencilik Sanayi Ve Ticaret Limited Sirketi, ("Kenz Mining") a Turkish private company.
The LOI provides that Valhalla and Kenz Mining will enter into a Strategic Alliance Agreement within 60 days from the signing. Valhalla and Kenz Mining will incorporate a Company under the laws of Turkey ("Valken") to be held 70% by Valhalla and 30% by Kenz Mining. Valken will hold, explore and develop Turkish properties on behalf of Valhalla and Kenz Mining.
As part of the strategic alliance it is contemplated that Valhalla will, subject to receipt of all necessary TSX Venture Exchange and regulatory approvals, transfer all of its interest in the Sarp Properties to Valken in consideration for a payment by Kenz Mining of USD$200,000 and a subsequent payment of USD$1,000,000 upon commencement of commercial production on the Sarp Properties.
In addition, Mr. Firat Gulgen, the Chairman and majority shareholder of Kenz Mining and Mr. Ibrahim Ata Ferhatoglu, the Managing Director of Kenz Mining, have agreed to join the Board of Directors of Valhalla.
Mr. Gulgen is the Founder and Chairman of Calinos Holdings A.S. ("Calinos"), a Turkish-based media group. Calinos is responsible for approximately 75% of the distribution of Turkish television and movies, and is active in the export of Turkish television programs and other media to over 70 countries.
"As noted in the November 28, 2011 Time Magazine cover story on Turkish Prime Minister, Erdogan - Mr. Gulgen has contributed significantly through his far reaching media empire to Turkey's growing influence on the world stage. As a consequence, we are extremely pleased that Mr. Gulgen and Kenz Mining are going to be working with Valhalla to acquire and develop exploration and mining opportunities in Turkey and the Region," noted Valhalla Chairman, Michael Williams.
Mr. Gulgen added, "The formation of our strategic alliance with Valhalla further demonstrates our view that a strong mining sector is developing in Turkey, and our confidence that Valhalla has positioned itself to maximize opportunities in our country in the coming years."
Mr. Ferhatoglu, B.Sc., is a geologist with over 24 years of experience in minerals exploration and industrial minerals. He has previously focused on the exploration of volcanogenic massive sulphide (VMS), epithermal and porphyry deposits.
Kenz Mining holds 6,500,000 common shares of Valhalla (15.2% of Valhalla's outstanding shares), having purchased common shares in Valhalla through private placements and in the Initial Public Offering completed in December, 2011.
About Valhalla Resources Ltd.:
Valhalla Resources is a Canadian mineral exploration company focusing on the discovery and development of base and precious metal opportunities in Turkey and Romania. Its principal assets are the the Sarp Properties in northwestern Turkey, and the Bratosin Hill property in the historic Golden Quadrilateral region of Romania. In addition, the Company is evaluating numerous opportunities throughout the Tethyan Mineral Belt that traverses eastern Europe and Asia, and plays host to a number of world-class gold and copper deposits.
About Kenz Madencilik Sanayi Ve Ticaret Limited Sirketi:
In 2010, Calinos Holdings established a minerals division under the name Kenz Madencilik A.S. Kenz Mining is headquartered in Istanbul and has a branch office in Ankara. It has interests in metallic and industrial minerals exploration, development and mining. These interests include joint ventures with Alacer Gold Corp. ASRAQG and Aldridge Minerals Inc. (TSX VENTURE:AGM).
ON BEHALF OF THE BOARD OF DIRECTORS
Joel Hayes, President
Caution Regarding Forward-Looking Information
This news release includes certain forward-looking statements within the meaning of Canadian securities laws. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results, performance, prospects and opportunities to differ materially from those expressed in such forward-looking statements. Forward-looking statements in this news release, include, but are not limited to, the fact that completion of the Private Placement is subject to a number of customary closing conditions, including receipt of the approval of Valhalla's shareholders and approval of the Exchange, economic performance, future plans and objectives of the Company and the other factors discussed under the heading "Risk Factors" in the Company's Management's Discussion and Analysis for the year ended November 30, 2011 and in other continuous disclosure filings made by the Company with Canadian securities regulatory authorities and available at www.sedar.com. Any number of important factors could cause actual results to differ materially from these forward-looking statements as well as future results. Although Valhalla believes that the assumptions and factors used in making the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed timeframe or at all. Valhalla disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
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