TSX-V: MSR
TORONTO, Nov. 9, 2021 /CNW/ - Minsud Resources
Corp. (TSXV: MSR) ("Minsud" or the "Company") is
pleased to announce that a wholly-owned subsidiary of South32
Limited ("South32") has given notice of its intention to
fund the third tranche exploration activities in 2022 as per the
earn-in agreement executed on November 1,
2019 (the "Earn-in Agreement"). The 2022 program will
largely include in-fill and scouting drilling, with the broader
objectives of continuing the delineation of the resource footprint
at Chinchillones area and establish additional porphyry centres
along the Chita Valley Project, in the Province of San Juan,
Argentina.
Minsud is actively completing the second tranche exploration
program at the Chita Valley Project which is also being funded by
South32. The current 2021 program is mostly focused on drilling the
Chinchillones area, where the drill hole results confirmed the
presence of highly significant Zn-Pb-Ag mineralization that
overprinted at least two (2) porphyry centres. Partial results of
this year's exploration program were released by Minsud on
October 7, 2021, and August 26, 2021. The reported substantial
porphyry Cu mineralization supports the potential of Chinchillones
to host clusters of intrusion-hydrothermal phreatic breccias
affiliated with porphyry mineralization.
Ramiro Massa, Minsud's President
& CEO, said: "The decision by South32, a globally
diversified mining and metals company, to partner with Minsud to
explore in Argentina and advance
our Chita Valley Project in San Juan province demonstrates
South32's confidence in our exploration strategy, our technical
capabilities and commitment. Minsud's management and exploration
team are looking forward to working closely with South32 in the
years ahead. We are very excited about what we can achieve
together."
Mr. Mario Alfaro, Professional
Geoscientist, VP-Exploration of the Company, is a qualified person
as defined by Canadian National Instrument 43-101. Mr. Alfaro
visited the property and has read and approved the contents of this
release.
Earn-in Agreement
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 two (2) remaining years such that its aggregate funding is (i)
not less than C$10.5 million by
December 31, 2022; and (ii) 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 Company 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.