Aurelio Announces Entering into Non-Binding Term Sheet with Private Equity Fund

Aurelio Announces Entering into Non-Binding Term Sheet with Private Equity Fund

Aurelio Resource Corporation announced that it has entered into a non-binding term sheet with a private equity fund to sell its Hill Copper/Zinc project in Arizona and to finance continuing exploration work at its Mexican Gavilanes project.

If the transaction is consummated as currently contemplated (as to which no assurance can be given), the transaction would result in the Company selling its Arizona subsidiary, Bolsa Resources, Inc., to the Fund in exchange for $2 million and will retain a 3% Net Smelter Return Royalty on the Hill Copper/Zinc project (“Bolsa NSR”). The monies received would be used to retire existing Company indebtness and for working capital purposes. As part of the agreement, the Fund would also be required to complete a Bankable Feasibility Study for the Hill Copper/Zinc project within the next four years. Upon completion of the Bankable Feasibility Study, the Fund would have a right to purchase the Bolsa NSR at fair market value.

The Company will also receive an additional $2 million in exchange for the conveyance of a 3% Net Smelter Return Royalty from its Gavilanes gold project in Mexico (“Gavilanes NSR”). The Company retains the right to repurchase the Gavilanes NSR at fair market value.

Aurelio Resource Corporation is a mineral exploration company focused on fast-track development of its wholly owned Hill Copper-Zinc Project, which the Company believes contains a number of low-cost, bulk-tonnage, open-pit-mineable deposits close to surface containing significant amounts of copper, zinc, silver and gold. The Company has previously announced an independent estimate of the mineralized material at the MAN Area of the Project totaling 63.8 million tons at an average grade of 0.56% copper-equivalent. Aurelio has also acquired the rights to explore, and an option to purchase, the Gavilanes gold porphyry deposit in Durango, Mexico.

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