Exeter Resource to list Extorre on TSX and OTC

Exeter Resource Corporation (AMEX: XRA, TSX: XRC and FSE: EXB) has updated investors ahead of its decisive shareholders meeting on the 11th March, where a vote will be held in respect of the company’s proposed spin-out of its Argentinean operations. In the circular to existing shareholders, Exeter set out the details of the proposal.

At the meeting the Exeter will seek 66.33% shareholder approval to complete the proposed spin-out. The proposal sees Exeter split into two distinct and separate entities, Exeter Resource Corp and Extorre Gold Mines. Exeter will own the Chilean assets principally the Caspiche Gold Project, whilst Extorre will own the Cerro Moro and Don Sixto properties in Argentina. The proposed transaction will result in each Exeter shareholder receiving one share in Extorre for each share held in Exeter. There will be no change in the holdings in Exeter Resource Corporation.

Should the proposal become effective, Exeter intends to set the transactions distribution day. Two day’s before this ‘distribution day’, shares in the respective company’s will be created and will be traded on an ‘ex-distribution’ and a ‘when issued’ basis. Exeter told investors that non-dissenting shareholders will have their holdings have exchanged without any action on their part and they will be credited with the Extorre shares to which they are entitled.

Providing the proposal receives all necessary approvals, the company expects the transaction to close on or about March 12th 2010. Subject to approval Extorre Gold Mines will be listed on the Toronto Stock Exchange (TSX), additionally for Exeter’s US based investors it will initially seek a listing on the on the OTCQX exchange.

Extorre will initially focus on the progression of the Cerro Moro project through feasibility, project financing, development and into production. A Preliminary Assessment Study is scheduled for Q3 2010, which will provide a detailed description of a potential mine at Cerro Moro, including forecast production rates, capital costs, operating costs and cash flows.

Extorre also intends to increase the Cerro Moro resource by drilling the many partially explored veins on the property.

Earlier this month, Exeter reported more, high grade and bonanza grade gold intersects from in-fill drilling at the Cerro Moro project in Santa Cruz Province, Argentina.  The latest drill results continued to highlight the potential of the project; the most impressive result emanated from drill hole MD644 which returned 5.38 meters at an average grade of 149.9 grams per tonne gold equivalent. 12 of the 28 holes reported high grade gold. On 3 February, Exeter’s Exploration Manager Matt Williams stated “Within two weeks the company will have completed the infill drilling considered sufficient to bring a substantial component of the Escondida mineralization into the Indicated Resource category”.

Exeter’s current mine development manager, Dr. Eric Roth will be appointed Extorre’s CEO and president. Roth has extensive experience in mine development, through his roles as a mine geologist and an exploration geologist for BHP Billiton (ASX: BHP; LSE: BLT), Rio Tinto (LSE, ASX: RIO) and AUR Resources. Most recently he was head of greenfields exploration for AngloGold Ashanti (LSE, ASX: AGG; NYSE: AU).

Exeter Chairman Yale Simpson and CEO Bryce Roxburgh will become Extorre’s co-chairmen. Ignacio Celorrio, an Argentine lawyer specialising in mining law, also joins the board along with Exeter directors Louis Montpellier, Cecil Bond, Robert Reynolds. Darcy Daubaras will be chief finance officer of Extorre.

Santa Cruz province is one of the most prolific locations for gold explorers and producers alike, with a string of discoveries made in recent years and several mid-tier and top-tier gold and silver companies active in the area.

Exeter will retain all assets relating to the Caspiche gold-copper discovery in Chile, together with approximately US$50 million in working capital. The current Exeter board and the Chilean management team will remain to take the Caspiche project forward. Exeter said it intends to continue building shareholder value through the expansion of the large gold-copper resources and the completion of the mine development studies currently underway.