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TORONTO, ONTARIO--(Marketwire
- Aug. 13, 2009) - Alturas Minerals Corp. (the "Company")
(TSX VENTURE:ALT)(BVLAC:ALT) is pleased to
report that it has entered into a letter of intent agreement with Compania de Minas Buenaventura S.A.A.
("Buenaventura") (BVLAC:BUE.LM)(NYSE:BVN), a Peruvian company
listed on the Lima and New York Stock Exchanges, regarding its 100%
owned Ccaccapaqui 1 property in southern
Peru.
Under the terms of the letter of intent (LOI) agreement, Buenaventura
can earn an initial 51% interest in the project by spending a total of
US$ 4.0 million on exploration and maintenance, and by making staged
yearly cash payments to Alturas totaling US$
1.65 million, within 4 years of the date of signature of the framework
agreement to be executed. Buenaventura
would be obligated to spend a minimum of US$800,000 on exploration and
maintenance within the first year.
Upon Buenaventura
earning the initial 51% interest, it could elect to earn in an extra
19% in the project by funding and delivering a Feasibility Study within
2 years to bring its total interest to 70%. If Buenaventura elects not to complete a
feasibility study, then Alturas would have the option to complete a
feasibility study and earn back 21%, to bring its share to 70%.
On completion of the feasibility study or in case neither party decides
to fund a feasibility study, the parties would fund pro-rata on a 70:30
or 51:49 basis, as it may be the case, the development of the project
and would be subject to normal straight line dilution clauses. Should
either party dilute to below 10%, then it would exit with a 1.5% NSR.
Buenaventura
would be the operator and full pre-emptive rights would apply in case a
party wishes to assign its interest in the joint venture or its rights
to the NSR royalty to an unrelated party.
Paul Pearson, President and CEO of Alturas commented, "We are
delighted to be working with Buenaventura,
a major international mining house and one of Peru's
principal gold and silver producers, in advancing exploration at our Ccaccapaqui gold-silver project. This agreement
forms part of Alturas's strategy of sharing exploration expense and
risk at some of our key gold and copper-gold projects, whilst focusing
our own resources in our flagship copper-gold property, Chapi Chapi- Utupara".
The transaction remains subject to Board and regulatory approvals of
both parties, due diligence and formal legal documentation, with
closing scheduled for September 13.
About the Ccaccapaqui gold-silver project
The 600 hectare
Ccaccapaqui project is located 460 kilometers
southeast of Lima
in the department of Ayacucho, within the same volcanic belt that hosts
major high- and low-sulfidation epithermal
gold-silver deposits such as Orcapampa,
Arcata, Ares, Antapite and Poracota. Buenaventura-Newmont's Breapampa high sulfidation
gold deposit lies 24
kilometers to the
southeast of the Ccaccapaqui project. Sampling
by Alturas at Ccaccapaqui has previously
returned very encouraging gold and silver results within the upper
levels of an interpreted high-sulfidation
epithermal system, as reported in a company press release dated June
18, 2008. Gold- and silver-mineralized silicic
alteration defines a coherent anomaly of +1.50 x 0.50 kilometers
in dimension and the system is still open at both ends. Access to the
project is currently restricted as there is an illegal governmental
restraint given by the Provincial Municipality of Parinacochas-Coracora.
This restraint is regional in extent and is in no way specific to the
company or the property. Alturus is considering
what actions can be taken to resolve this difficulty and will keep
investors apprised of any developments.
For maps and an extended summary of exploration results, refer to the
Company's website www.alturasminerals.com/our-projects.html#project1
About Compania de Minas Buenaventura
Buenaventura is Peru's largest publicly-traded precious metals company
and currently operates seven mines in Peru (Orcopampa,
Uchucchacua, Antapite,
Julcani, Recuperada,
Shila-Paula and Ishihuinca),
has controlling interests in one mining company (El Brocal).
In addition, Buenaventura has minority
interests in several other mining companies, including a significant
ownership interest in Yanacocha (43.65%), via
a partnership with Newmont Mining, one of the most important gold
mining companies in the world, and Cerro Verde (19.26%), an important
Peruvian copper producer located in the southern Peru.
The Company has been listed on the Lima Stock Exchange (BUE.LM) since
1971, and on The New York Stock Exchange (NYSE:BVN) since 1996.
About Alturas Minerals Corp.
Alturas is a Canadian corporation, and is the parent of Alturas
Minerals S.A. ("Alturas Peru"). Alturas Peru has been actively exploring various
mineral projects in Peru
since January 2004. Alturas' properties include four drill-ready
mineral exploration projects located in central and southern Peru,
which includes the Chapi Chapi-Utupara
Copper-Gold Project, the Sombrero Copper-Gold Project, the Ccaccapaqui Gold-Silver Project and the Huajoto Gold-Silver-Zinc Project. In addition,
Alturas Peru has
interests in seven other exploration projects in Peru. Alturas'
exploration strategy is focused on the discovery of large epithermal
gold mineralized deposits and copper-gold porphyry/skarn
deposits. For further information, please visit the Company's website
at www.alturasminerals.com
As required by the National Instrument 43-101, Alturas's designated
Qualified Person for the supervision of exploration of the projects is
Dr. Paul Pearson, F. AUSIMM, President and CEO of the Company, who has
verified the technical information reported in this News Release.
Alturas Minerals Corp.
Suite 3100, Scotia Plaza, 40 King St. W., Toronto, ON Canada M5H 3Y2
and
Manuel de Falla 297, Floor 5th, San Borja, Lima 41, Peru
Should you wish to receive Company news via email, please email contact@alturasminerals.com and specify "Alturas News" in the subject line
Cautionary Language and Forward Looking Statements
This press release may contain "forward-looking statements",
which are subject to various risks and uncertainties that could cause
actual results and future events to differ materially from those
expressed or implied by such statements. Investors are cautioned that
such statements are not guarantees of future performance and results. Risks
and uncertainties about the Company's business are more fully discussed
in the Company's disclosure documents filed from time to time with the
Canadian securities authorities.
The TSX Venture Exchange does not accept responsibility for the
adequacy or accuracy of this release.
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