Vancouver, B.C., September 21, 2011: Serengeti Resources Inc. (SIR: TSX-V; 34S: FSE) is pleased to announce that Xstrata Copper Canada, a business unit of Xstrata Canada Corporation, has entered into an option agreement to explore a number of Serengeti’s Quest JV properties, currently held with Fjordland Exploration Inc. (FEX: TSX-V) in a 63.7% (SIR) / 36.3% (FEX) joint venture. The agreement provides Xstrata the right to earn an initial 51% interest in the properties by funding $5 million in exploration expenditures and making firm and optional cash payments to the joint venture over four years, totalling $325,000. Xstrata has the right to earn an additional 14% interest for an aggregate 65% interest in the properties by completing a feasibility study or incurring no less than an additional $25 million in expenditures on the properties.
The six properties that are subject to this agreement (Rob, Ping, Reid Lake, ST, PG, and MP) total approximately 27,700 hectares and are located in the Quesnel Trough porphyry belt between Mt. Milligan and south of Prince George, British Columbia. All the properties are considered prospective for hosting porphyry copper-gold deposits and several of these properties already have drill targets identified, as a result of prior exploration by Serengeti and Fjordland by expending of approximately $1.7 million.
David Moore, President and CEO of Serengeti, stated: “Our existing Quest Joint Venture partnership is extremely pleased to have Xstrata Copper join us in advancing these high quality porphyry prospects. This agreement should result in these properties being aggressively explored in the near term. This is Serengeti’s third agreement with a major mining company in the Quesnel Trough and is consistent with our goal of attracting partnerships to leverage our early-mover advantage in this favourable belt”.
In addition, the Company announces the grant of 30,000 incentive stock options to an employee of the Company, in accordance with the Company’s Stock Option Plan, exercisable at a price of $0.26 for a period of five years from the date of issuance.
About Serengeti Resources Inc.
Serengeti is a mineral exploration company managed by an experienced team of professionals with a solid track record of exploration success. The Company is currently advancing its Kwanika copper-gold project and exploring its extensive portfolio of properties in the highly prospective Quesnel Trough of British Columbia and has initiated exploration for gold-silver deposits in Mexico. Additional information on Serengeti’s projects can be found on the Company’s website at www.serengetiresources.com. Serengeti is well funded to advance its projects with a current working capital position of approximately $5.1 million. Serengeti has 51.1 million shares issued and outstanding or 58.8 million shares on a fully diluted basis.
ON BEHALF OF THE BOARD
David W. Moore, P. Geo., President, CEO and Director
This document contains “forward-looking statements” within the meaning of applicable Canadian securities regulations. All statements other than statements of historical fact herein, including, without limitation, statements regarding exploration plans and other future plans and objectives, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and future events and actual results could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from our expectations are disclosed in the Company’s documents filed from time to time via SEDAR with the Canadian regulatory agencies to whose policies we are bound. Readers are advised not to place undue reliance on forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
For further information, please contact:
Investor Relations: Paradox Public Relations (tel) 514-341-0408 (toll free in North America) 1-866-460-0408
Serengeti Resources Inc., (tel) 604-605-1300 SIR: TSX.V 34S: FSE