Valhalla Formalizes Strategic Alliance in Turkey and Adds Two New Board Members

Image Valhalla Resources Ltd.  ("Valhalla" or the "Company") is pleased to announce that it has formalized the Letter of Intent signed in March (see news release #1 dated March 15th, 2012 entitled "Valhalla announces strategic alliance in Turkey") with Kenz Madencilik Sanayi Ve Ticaret Limited Sirketi, ("Kenz Mining"). Valhalla and Kenz will be pursuing opportunities in Turkey.

The Strategic Alliance will operate via a Turkish company named Valken Enerji Mineral Madencilik Sanayi ve Ticaret A. S. (Valken Energy Mineral Mining Industry and Trade Corporation) ("Valken"), which is 70% owned by Valhalla and 30% owned by Kenz Mining. Valken will explore and develop mineral properties in Turkey on behalf of Valhalla and Kenz Mining.

Valhalla's Sarp Properties, a joint venture with Alacer Gold Corp, will be transferred to the new company and ongoing exploration and holding costs will be funded on a pro rata basis by Valken's shareholders. A payment of US$200,000 will be made by Kenz Mining to Valhalla upon receiving all the necessary TSX Venture Exchange and regulatory approvals for the transfer. Kenz Mining would also make a subsequent payment of US$1,000,000 upon commencement of commercial production on the Sarp Properties.

In addition, Mr. Firat Gulgen, the Chairman and majority shareholder of Kenz Mining and Mr. Ibrahim Ata Ferhatoglu, the Managing Director of Kenz Mining, have been appointed to the Board of Directors of Valhalla.

Mr. Gulgen is the Founder and Chairman of Calinos Holdings A.S. ("Calinos"), a multinational media group based in Turkey. Calinos is responsible for approximately 75% of the distribution of Turkish television and movies, and is active in the export of Turkish television programs and other media to over 70 countries.

Kenz Mining holds 6,500,000 common shares of Valhalla (15.2% of Valhalla's outstanding shares) having purchased common shares in Valhalla through private placements and in the Initial Public Offering completed in December, 2011.

About Valhalla Resources Ltd.:

Valhalla Resources is a Canadian mineral exploration company focusing on the discovery and development of base and precious metal opportunities in Turkey and Romania. Its principal assets are the Sarp Properties in Northwestern Turkey and the Bratosin Hill property in the historic Golden Quadrilateral region of Romania. In addition, the Company is evaluating numerous opportunities throughout the Tethyan Mineral Belt which traverses Eastern Europe and Asia and plays host to a number of world-class gold and copper deposits.

About Kenz Madencilik Sanayi Ve Ticaret Limited Sirketi:

In 2010, Calinos Holdings established a minerals division under the name Kenz Madencilik A.S. Kenz Mining is headquartered in Istanbul and has a branch office in Ankara. It has interests in metallic and industrial minerals exploration, development and mining. These interests include joint ventures with Alacer Gold Corp and Aldridge Minerals Inc.
Last modified onSaturday, 06 May 2017 10:07