Vancouver, BC, September 11, 2013.
Newport Exploration Ltd. ("Newport" or the "Company") is pleased to announce that it has reached an agreement (the "Chu Chua Agreement") with Reva Resources Corp. ("Reva") (TSXV:RVA) to acquire from Reva a 100% interest, subject to certain royalties, in the Chu Chua massive sulphide deposit located near Barriere, British Columbia (the "Chu Chua Property"). The Chu Chua Property is currently the subject of an option agreement between the Company and Reva whereby the Company has the right to earn a 50% interest in the Chu Chua Property by funding approximately $1,070,000 of expenditures on the Chu Chua Property, of which approximately $450,000 remains to be spent.
Under the terms of the Chu Chua Agreement, which will supercede and replace the current option agreement, the Company will acquire a 100% interest in the Chu Chua Property, subject to certain royalties, in consideration for a cash payment of $1,500,000 and the issuance of 5,436,000 common shares of the Company (representing approximately 9.9% of the current issued and outstanding shares of the Company) having a deemed price of $0.05 per share, which shares will be subject to a four month hold period.
The Chu Chua Property is the subject of a technical report dated August 9, 2012 entitled "Technical Report on the Chu Chua Property, British Columbia, Canada" as prepared by Apex Geosciences Ltd., which report is filed on SEDAR (www.sedar.com
Ian Rozier, the control person of Reva, and David Cohen, an insider of Reva, are directors of the Company and have abstained from voting on the transaction.
The Chu Chua Agreement remains subject to the acceptance of the TSX Venture Exchange.
For further information respecting Newport, contact:
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.