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Abstract
Crazy Horse Resources Inc. (TSX VENTURE:CZH) (the "Company", "Crazy Horse") is pleased to announce that it has entered into a letter agreement with Solfotara Mining Corp. ("Solfotara") to option and acquire, subject to shareholder and regulatory approval, all of Solfotara's ownership interest in the advanced-stage Basay project, the Kilong-Olao/Bayosen projects, and the highly prospective Biliran gold project in the Philippines.
CDC and Solfotara entered into the Basay JV Agreement which sets out the terms of the joint venture for the Basay Project and the management and operations of BCL. Under the terms of the Basay JV Agreement, CDC was required to spend US$5 million within two years of April 8, 2011 on the Basay Project. Otherwise, CDC would relinquish its entire 70% interest in BCL to Solfotara for nil consideration.
Furthermore, if CDC fails to complete a pre-feasibility study on the Basay Project within four years of April 8, 2011, CDC must relinquish a 45% interest in BCL to Solfotara for nil consideration. If CDC completes a pre-feasibility study but fails to complete a feasibility study on the Basay Project within six years of 8 April 2011, CDC must relinquish a 20% interest in BCL to Solfotara for nil consideration.