TSX-V: MSR
TORONTO, Nov. 15,
2023 /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 35% beneficial
interest in the Minas de Pinto Trust, and has become the indirect
owner of 100% of the Minas de Pinto property. The Minas de Pinto
property represents one of the main properties in the Company's
flagship Chita Valley Project. MSA has paid the required sum
of US$935,000 to the Minas de Pinto
owners (the "Minas de Pinto Owners") representing the price
to fully exercise the option, which was settled in Argentinean
pesos.
On May 7, 2010, the Company,
through MSA, entered into an Exploration Agreement including a
Purchase Option (the "Initial Minas de Pinto Agreement")
with the owners of the mining properties identified under the name
of Proyecto Minas de Pinto, located in the Chita Valley in the
Province of San Juan, Argentina. Included in Proyecto Minas de
Pinto are the Arqueros, Don Marcos,
Estrellita, Paulita, Paulita II, Pierina II, Pierina III, San
Pablo, and San Urbano mining concessions.
On April 22, 2014, the Minas de
Pinto Owners settled the Minas de Pinto Trust and transferred 100%
of the mineral properties governed by the Minas de Pinto agreement
to the Minas de Pinto Trust. The Company acquired a 50% interest in
the Minas de Pinto Trust for total consideration of US$417,500. The remaining 50% beneficial
interest in the Minas de Pinto Trust held by the Minas de Pinto
Owners was subject to a new, exclusive and irrevocable option
agreement (the "Option") granted in favour of MSA for
consideration of US$1,335,000 payable
at any time on or before May 7,
2019.
On May 8, 2017, the Company and
the Minas de Pinto Owners signed an addendum to extend the period
in which the Company could acquire the remaining 50% beneficial
interest by exercising the Option prior to November 7, 2020.
On May 4, 2020, upon exercise of
the Option discussed above, MSA entered into a Transfer Agreement,
pursuant to which MSA acquired an additional 15% interest in the
Minas de Pinto Trust in exchange for aggregate cash payments of
US$400,000, payable in eight
semi-annual payments of US$50,000
starting on May 7, 2020 until
November 7, 2023. Furthermore, the
parties entered into a second addendum to the Option, which would
allow MSA to purchase the remaining 35% interest in the Minas de
Pinto Trust by paying US$935,000 on
or before April 7, 2024. No net
smelter return or other similar right was granted to the Minas de
Pinto Owners.
As summary of the payments relating to the acquisition of the
Minas de Pinto property is set out below:
|
US$
(*)
|
|
Initial Exploration Agreement
|
$
252,500
|
|
Acquisition
of 50% interest
|
$
417,500
|
|
Acquisition of
15% interest
|
$
400,000
|
|
Option exercise of 35%
interest
|
$
935,000
|
|
Total
payments
|
$
2,005,000
|
|
(*) All amounts paid
in Argentinean pesos at official Fx rate.
|
Ramiro Massa, Minsud's President
and CEO, states: "Having exercised the final Option on the
remaining 35% of Minas de Pinto property is a significant milestone
for our Company, that now owns 100% of all its mineral properties
at the Chita Valley Project. 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 sulphide
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 Limited ("South32")
in accordance with the earn-in agreement between the parties
entered into on November 1, 2019 and
amendments.
On April 13, 2023, South32
exercised its earn-in right to acquire a 50.1% direct interest in
MSA at the earlier of: (i) the completion of the Year 4 annual
exploration program; and (ii) February 14,
2024 ("Completion"). At the time of Completion,
Minsud Argentina Inc. ("MAI"), a wholly owned subsidiary of
the Company, and South32 will enter into a shareholders' agreement
to govern the management and operation of MSA.
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 the early stage La
Rosita project comprising of 6,000 ha in Santa Cruz Province, Argentina.
About South32
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 realize the
potential of their resources. South32 produces commodities
including bauxite, alumina, aluminium, copper, silver, lead, zinc,
nickel, metallurgical coal and manganese from its 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 and in other
disclosures available on www.sedar.com. 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.