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TORONTO, ONTARIO--(Marketwired - Jan 4, 2016) - Adriana Resources Inc. ("Adriana" or the "Company") - (TSX VENTURE:ADI) announces that it made an additional investment of $3,054,451 in Lac Otelnuk Mining Ltd. ("LOM") pursuant to a cash call that will fund the costs for the LOM joint venture beyond 2020. Adriana owns 40% of LOM, which is a joint venture company with WISCO International Resources Development & Investment Limited ("WISCO"), which in turn holds the Lac Otelnuk Property in Nunavik, Québec. WISCO has funded their portion of the cash call in the amount of $4,581,676. Annual costs are expected to be approximately $660,000 per year to keep the claims in good standing.
Adriana remains optimistic for the future of the Lac Otelnuk project, and while the results of the April 2015 feasibility study demonstrate that the Lac Otelnuk project has attractive economic returns at higher iron ore prices, the Board of LOM has taken action to minimize costs on the project until such time that the iron ore market favours the development of the Lac Otelnuk project.
"Ring-fencing the LOM expenditures for at least the next five years allows Adriana to determine the cash balance to deploy into new opportunities, while protecting our investment in LOM" stated Michael Harrison, President and CEO, "the current depressed financing market continues to create interesting opportunities for Adriana's shareholders." Adriana currently has $29.5 million in cash, a strategic partnership with WISCO, and a world class asset. The Company has taken steps to conserve cash and reduce all discretionary expenditures and is reviewing opportunities to create shareholder value.
ON BEHALF OF ADRIANA RESOURCES INC.
Michael Harrison, President and CEO
Certain information regarding Adriana, may constitute forward-looking statements under applicable securities laws and necessarily involve known and unknown risks and uncertainties. Certain important risk factors could cause the Company's actual results to differ materially from those expressed or implied by such forward-looking statements including, without limitation, changes in the world wide price of mineral commodities and currency fluctuations, general market conditions, the uncertainty of future profitability and access to sufficient capital. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements and caution should be exercised on placing undue reliance on forward looking information.
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 press release.