VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 23, 2011) - MARIFIL MINES LTD. (TSX VENTURE:MFM) ("Marifil" or "the Company") announces that it has granted Saccharum Energy Corp. (TSX VENTURE:SHM) of Calgary, AB, an extension until March 31, 2011 to complete the financing and closing for Marifil's K-2 Potash property in Neuquen Province, Argentina (see News Release dated December 21, 2010).
Saccharum has agreed to pay $20,000 for the exclusive extension. Saccharum has informed the Company that it has signed an Engagement Letter with a major investment bank and that this institution has requested the extension to allow time to complete a financing on behalf of Saccharum.
Under the terms of the existing agreement Saccharum will pay Marifil US$500,000 in cash plus 2,000,000 Saccharum common shares over three years. The first year's payment to Marifil will be US$150,000 in cash and 1,000,000 shares upon Saccharum's completion of a financing.
Saccharum further agrees to spend US$4,500,000 in work over the next four years as follows: US$1,000,000 per year for the first three years and US$1,500,000 during the fourth year.
Saccharum will also pay Marifil performance bonuses of 1,500,000 shares upon completion of a positive NI 43-101 compliant ore resource and a further 1,500,000 shares following completion of a Feasibility Study. Upon completion of Saccharum's earn-in all further expenditures shall be shared 75:25. If a partner fails to pay its share that partner shall be diluted to a 1.5% Net Smelter Royalty. Saccharum shall have the right to purchase Marifil's royalty for US$15,000,000.
Saccharum is also required to restructure its Board by effecting the appointment of Messrs. Todd Montgomery and Brent Walter as directors.
Marifil also agreed to give Saccharum Right of First Offer for the Company's K-3 potash project located in neighbouring Mendoza Province.
This agreement is subject to approval by the Boards of Directors of Saccharum, Marifil, and Oxbow and the TSX. A small finder's fee is payable to a third party.
For further information regarding Marifil Mines Ltd., please refer to the Company's filings available on SEDAR (Http://www.sedar.com) or at Marifil's Website (Http://www.marifilmines.com).
This press release has been reviewed and approved by John Hite, President of Marifil Mines Ltd. and by Richard Walters, Vice President under whose directions the exploration program is being carried out. Mr. Hite and Mr. Walters are Qualified Persons as defined by National Instrument 43-101.
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For more information, please contact
Marifil Mines Ltd.
Ascenta Capital Partners Inc.
(604) 684-4743 ext. 242