|June 21, 2010|
Reservoir Signs Earn-in Agreement with Freeport-McMoRan Exploration Corporation and Acquires Licenses from Euromax
Vancouver, British Columbia (TSX Venture: REO) -- Reservoir Capital Corp. ("Reservoir" or the "Company") is pleased to report that it has signed an Earn-in Agreement ("the Timok Agreement") with Freeport-McMoRan Exploration Corporation ("Freeport"), to explore and develop the Company's Brestovac and Jasikovo exploration licenses in the Bor District of northeast Serbia. Reservoir is also pleased to announce that it has signed a Net Smelter Royalty Agreement ("the Euromax Agreement") with Euromax Resources Ltd. ("Euromax") to acquire the Brestovac East and Durlan Potok exploration licenses in the same district, which will be included in the Timok Agreement with Freeport. All four licenses, totalling 18,395 hectares in area, are being transferred to Rakita D.o.o., a wholly-owned subsidiary of Rakita (BVI) Ltd., ("Rakita") an indirect wholly-owned subsidiary of the Company.
The Timok Agreement:
Under the terms of the Timok Agreement, Freeport may earn an initial 55% interest in Rakita by investing US$3 million in exploration (US$400,000 committed for year one) over a four-year period. During this initial earn-in phase, Reservoir will act as operator of the exploration work and provide support for Freeport's exploration and geophysical teams. Once Freeport has earned its initial 55% interest, Freeport may become the operator and may elect to earn an additional 20% interest (75% in total) by completing a Scoping Study within four years, a Pre-Feasibility Study within eight years and a Feasibility Study within thirteen years. In the event that Freeport decides to withdraw from this second option, its ownership interest in Rakita would remain at 55%, with on-going funding on a pro-rata basis. If Freeport delivers a Feasibility Study and the project goes into production, it would be able to recover Reservoir's share of the cost of the Feasibility Study from 80% of the Company's first cashflow.
Brestovac and Jasikovo:
The 25.5 square kilometre Brestovac Exploration License lies 4 kilometres south of the world-class Bor copper-gold mining district, which has historical production of 7 million tonnes of copper and 300 tonnes of gold, and current resources in the Borska Reka deposit of 600 Mt @ 0.62% copper and 0.25 grams per tonne ("g/t") gold. Brestovac is host to favourable geology, alteration and mineralization, with excellent potential for porphyry copper-gold mineralization on the 6 kilometre strike extension of the Bor Fault within the License. Past work by Reservoir outlined a high-grade epithermal copper-gold system in the "Corridor Zone" along a strike length of 550 meters, with the best drill intercept for gold from hole BN-05 with 16.90 meters at 13.04 g/t gold. The last hole drilled by Reservoir BN-19, at the eastern end of the Corridor close to the Bor Fault, intercepted a massive sulphide zone with 24.8 meters at 0.33 % copper and 0.16 g/t gold, which supports the Company's concept that the epithermal gold mineralization of the Corridor grades into a copper-rich zone. The 12.45 square kilometre Jasikovo Exploration License lies to the north of the Bor Mine; surface work has mapped and sampled several prospective alteration zones that also warrant further work.
The Euromax Agreement:
The Euromax Agreement covers the 90 square kilometre Brestovac East Exploration License (adjacent to the Company's Brestovac License), adjacent and south of the Bor Copper-Gold Mine and the 56 square kilometre Durlan Potok Exploration License to the north of Bor. Under the terms of the agreement with Euromax, the Company has acquired a 100% interest in both properties, in exchange for a 0.5% net smelter return ("NSR") royalty and has included them in the Timok Agreement with Freeport. As both properties were previously owned by Freeport, which conducted geophysics and limited drilling, the NSR royalty will not apply to any portion of the property eventually owned by Freeport.
Durlan Potok and Brestovac East:
Durlan Potok lies along the important Bor Fault (host structure to the major known deposits in the district), 12 kilometres to the north of the Bor Mine. According to Euromax, initial wide-spaced soil sampling has defined a 2,000 metre long gold and copper anomaly with peak values of 720 parts per billion ("ppb") gold and 620 parts per million ("ppm") copper. Outcrop within the survey area is poor and limited float sampling has produced encouraging precious and base metal values and alteration indicative of a high sulphidation epithermal environment.
Dr. Duncan Large, Chartered Engineer (UK) and Eur. Geol., a Qualified Person as defined by National Instrument 43-101 and consultant to the Company, is responsible for the preparation of the technical information in this release.
Reservoir Capital Corp. is a southeast Europe focused project generator, investing primarily in renewable energy. The Company holds two hydroelectric licenses, Brodarevo 1 and 2, with 55MW of potential capacity undergoing pre-feasibility studies and an application in process for a third license at Vrutci with 32MW potential capacity, all in southwest Serbia. Reservoir currently holds four geothermal licenses and a portfolio of precious and base metal exploration projects. Reservoir's common shares trade on the TSX Venture Exchange under the symbol "REO" and on the Frankfurt and Berlin exchanges under the symbol "ROC".
For further information on Reservoir Capital Corp. please consult the Company's website www.reservoircapital.ca or contact: Miles Thompson, Chairman at +1 604 662-8448, or Chris MacIntyre, VP Corporate Development, at +1 416 346-7660 or +381 63 571-425
Vancouver: Julia Maxwell, +1 (604) 662-8448
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
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