TSX-V: MSR
TORONTO, Oct. 7, 2021 /CNW/ - Minsud Resources
Corp. (TSXV: MSR) ("Minsud" or the "Company") is
pleased to announce that Minera Sud
Argentina S.A. ("MSA"), the Company's Argentine
indirect subsidiary, has exercised its option to purchase the
remaining 50% beneficial interest in the Brechas Vacas Trust, and
has become the indirect owner of 100% of the Brechas Vacas
property. The Brechas Vacas property represents one of the main
properties in the Company's flagship Chita Valley Project.
MSA has paid the required sum of US$735,000 to the Brechas Vacas owners
representing the price to fully exercise the option, which was
settled in Argentinean pesos.
On September 7, 2007, MSA entered
into an exploration agreement including a purchase option (the
"Initial Brechas Vacas Agreement") with the owners of the
mining properties (the "Brechas Vacas owners") identified as
Proyecto Brechas Vacas, located in the Chita Valley, in the
Province of San Juan, Argentina (the "Brechas Vacas
property"). In addition to the exploration rights, the Brechas
Vacas owners granted to MSA, an irrevocable and exclusive option to
purchase a 50% ownership interest in the property.
On September 6, 2011, MSA
exercised its option to purchase a 50% ownership interest in the
Brechas Vacas property for consideration of US$210,000. Subsequent to exercising this option,
the ownership of the Brechas Vacas property was transferred by the
Brechas Vacas owners to the Brechas Vacas Trust and MSA
simultaneously acquired a 50% beneficial interest in the Brechas
Vacas Trust. The remaining 50% beneficial interest in the
Brechas Vacas Trust held by the Brechas Vacas owners was subject to
a new exclusive and irrevocable purchase option agreement (the
"BV Option Agreement") dated January
3, 2012 granted in favour of MSA, and amended on
December 19, 2013, June 24, 2016 and June 24,
2019. The option under the BV Option Agreement can be
exercised by MSA at any time on or before June 26, 2022 and provides MSA with an
irrevocable and exclusive right to purchase the remaining 50%
beneficial interest in the Brechas Vacas Trust in exchange for a
cash payment of US$735,000 in
addition to the exclusive right to evaluate, prospect and explore
the Brechas Vacas property.
The Brechas Vacas owners will retain a 0.6% Net Smelter Return
("NSR") royalty on the Brechas Vacas property with the Company
having the option to purchase 0.3% of the 0.6% NSR royalty, at any
time, for a one-time payment of US$400,000.
Ramiro Massa, Minsud's President
and CEO, states: "We are excited to close the acquisition of 100%
ownership of the Brechas Vacas property. This property is an
important piece of our flagship Chita Valley Project and this
acquisition represents a considerable footprint for our company and
moves us one step closer to advancing the greater mission of
developing the Chita Valley Project."
About the Chita Valley Project, San Juan Province:
The Chita Valley Project is a large exploration stage porphyry
system with classic alteration features, widespread porphyry style
Cu-Mo-Au and polymetallic Ag-Pb-Zn mineralization hosted by
Hydrothermal Phreatic Breccias and associated gold and
silver-bearing polymetallic veins of intermediate sulfide
composition that conformed an outcropping porphyry system at Chita
and a lithocap of a porphyry system at Chinchillones. San Juan
Province of Argentina has a robust mining sector and recognizes the
important economic benefits of responsible development of its
substantial Mineral Resource endowment.
Current exploration activities on the Chita Valley Project are
being funded by a subsidiary of South32 in accordance with the
earn-in agreement between the parties entered into on November 1, 2019.
The earn-in agreement grants to South32 the right to acquire a
50.1% direct interest in the Company's Argentinean operating
subsidiary Minera Sud Argentina S.A.
("MSA") at the end of the earn-in period. Under the earn-in
agreement, South32 will provide further funding to MSA over the
next 3 years such that its aggregate funding is (i) not less than
C$7 million by December 31, 2021; (ii) not less than
C$10.5 million by December 31, 2022; and (iii) not less than
C$14 million by December 31, 2023. South32 has the right to
withdraw at the end of each year.
If South32 exercises its earn-in right it may elect to fund a
pre-feasibility study, with a minimum spend of C$41 million, which would entitle it to elect to
increase its 50.1% direct interest in MSA to 70%.
About Minsud Resources Corp.
Minsud is a mineral exploration company focused on exploring its
flagship Chita Valley Cu-Mo-Au-Ag-Pb-Zn Project, in the Province of
San Juan, Argentina. The Company also holds a 100% owned portfolio
of selected early-stage prospects, including 6,000 ha in
Santa Cruz Province,
Argentina.
About South32 Limited
South32 is a globally diversified mining and metals company. The
company's purpose is to make a difference by developing natural
resources, improving people's lives now and for generations to
come. South32 is trusted by its owners and partners to realise the
potential of their resources. South32 produces bauxite, alumina,
aluminium, metallurgical coal, manganese, nickel, silver, lead and
zinc at operations in Australia,
Southern Africa and South America. With a focus on growing its
base metals exposure, South32 also has two development options in
North America and several
partnerships with junior explorers around the world.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
INFORMATION:
This news release includes certain information that may
constitute forward-looking information under applicable Canadian
securities laws. Forward-looking information includes, but is not
limited to, statements about strategic plans, spending commitments,
future operations, results of exploration, anticipated financial
results, future work programs, capital expenditures and objectives.
Forward-looking information is necessarily based upon a number of
estimates and assumptions that, while considered reasonable, are
subject to known and unknown risks, uncertainties, and other
factors which may cause the actual results and future events to
differ materially from those expressed or implied by such
forward-looking information including, but not limited to:
fluctuations in the currency markets (such as the Canadian dollar,
Argentina peso, and the U.S. dollar); changes in national and local
government, legislation, taxation, controls, regulations and
political or economic developments in Canada and Argentina or other countries in
which the Corporation may carry on business in the future;
operating or technical difficulties in connection with exploration
and development activities; risks and hazards associated with the
business of mineral exploration and development (including
environmental hazards or industrial accidents); risks relating to
the credit worthiness or financial condition of suppliers and other
parties with whom the Company does business; presence of laws and
regulations that may impose restrictions on mining, including those
currently enacted in Argentina;
employee relations; relationships with and claims by local
communities; availability and increasing costs associated with
operational inputs and labour; the speculative nature of mineral
exploration and development, including the risks of obtaining
necessary licenses, permits and approvals from government
authorities; business opportunities that may be presented to, or
pursued by, the Company; challenges to, or difficulty in
maintaining, the Company's title to properties; risks relating to
the Company's ability to raise funds; and the factors identified
under "Risk Factors" in the Company's Filing Statement dated
April 27, 2011. There can be no
assurance that such information will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such information. Accordingly, readers should not
place undue reliance on forward-looking information. All
forward-looking-information contained in this news release is given
as of the date hereof and is based upon the opinions and estimates
of management and information available to management as at the
date hereof. The Company disclaims any intention or obligation to
update or revise any forward-looking information, whether as a
result of new information, future events or otherwise, except as
required by law.
Neither the 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 release.
SOURCE Minsud Resources Corp.