Wealth Minerals Ltd.

Published : April 01st, 2015

Wealth Enters into Exclusive LOI to Negotiate Agreement to Acquire the Advanced-Stage Yanamina Gold Property, West-Central Peru

( 0 vote, 0/5 ) Print article
  Article Comments Comment this article Rating Follow Company  
Keywords :   Canada | Debt | Diamond | Gold | Gold Mine | Growth | Market | Peru | Report | Sac | Water |

Wealth Enters into Exclusive LOI to Negotiate Agreement to Acquire the Advanced-Stage Yanamina Gold Property, West-Central Peru

VANCOUVER , April 1, 2015 /CNW/ - Wealth Minerals Limited.  ("Wealth" or the "Company") - (TSXV: WML; Frankfurt: EJZ), announces that it has entered into a letter of intent ("LOI") with Coronet Metals Inc. ("Coronet") to negotiate, on an exclusive basis, an agreement to acquire Coronet's Peruvian subsidiary, which subsidiary holds a 100% interest in the advanced stage Yanamina Gold Project, Peru ("Yanamina").  Yanamina consists of 5 mining concessions located in the Department of Ancash, Peru .


Pursuant to the LOI, it is proposed that Wealth will acquire Yanamina through acquisition of Coronet's Peruvian subsidiary, Coronet Metals Peru S.A.C. ("Coronet Peru"), in consideration of Wealth issuing 1,000,000 common shares to Coronet (as to 750,000 shares at closing and 250,000 shares six months later).  In addition, Wealth would assume responsibility for Coronet Peru's outstanding debt in an amount of no more than USD 81,000 , as well as Coronet's obligations with respect to certain future share issuances and payments to Migme Limited (formerly "Latin Gold Limited") ("LGL") and its subsidiary, Westmag Resources Limited ("WRL"), the former owner of Yanamina (including a 1% gross revenue royalty payable to WRL on all gold produced from Yanamina in excess of 200,000 ounces) relating to Coronet's purchase of Coronet Peru from LGL and WRL in 2011.  Production from Yanamina is also subject to a 2% NSR in favour of Barrick Gold Corporation ("Barrick"), which can be purchased outright at any time prior to the commencement of construction for USD 200,000 cash.

Closing of the proposed acquisition is subject to the completion and execution of the appropriate formal documentation with Coronet and LGL/WRL and the acceptance for filing of the transaction by the TSX Venture Exchange on behalf of both Wealth and Coronet.  There can be no assurance that the transaction will proceed as proposed or at all.

Wealth has commissioned a NI 43-101 technical report which will incorporate a resource estimate and Preliminary Economic Analysis for Yanamina and which it is anticipated will be completed in time to be filed with the TSX Venture Exchange to support the planned acquisition.


Yanamina is located in the Department of Ancash in northcentral Peru (Figure 1).  The Ancash region is bordered by the La Libertad region on the north, the Huanuco and Pasco regions on the east, the Lima region on the south and the Pacific Ocean on the west.  Yanamina is located approximately 16 kilometers east of the town of Caraz, which is located approximately 93 kilometres north of Huaraz, the largest city in the region with a population of 150,000 and the capital of Ancash.  Huaraz is located approximately 400 kilometres north of Lima .

Yanamina is located on the prolific Ancash Fault Zone.  Regionally, intense faulting associated with the Ancash Fault Zone has provided conduits for gold bearing hydrothermal solutions, giving rise to a number of gold occurrences and deposits in the region, from encouraging prospects to former producers and operating mines, including Barrick's formerly producing Pierina Gold Mine and its currently producing Alto Chicama/Lagunas Norte Gold Mine.

The mineralization at Yanamina is an advanced-stage gold deposit, which was originally explored by Arequipa Resources Ltd. ("Arequipa") in the early 1990s.  Arequipa completed regional prospecting, rehabilitated several of the historic tunnels, drove three new adits and completed 62 Diamond drill holes totaling 2,670 metres.  In 2000, Barrick acquired Arequipa and thereby Yanamina.  In 2006, LGL/WRL acquired an option to purchase 100% of Yanamina from Barrick, subsequently completing a program of channel sampling and 25 Diamond drillholes totalling 1,468 metres.  Yanamina was acquired by Coronet in 2011, which has not carried out any further exploration since that time.


Yanamina is located partially within the buffer zone of the Huascaran National Park.  The Company has been advised that mining operations in the buffer zone can be permitted within the current Peruvian legislative framework, subject to strict compliance with all required environmental standards, including extensive reclamation requirements.  The Nueva California Mine, located within the buffer zone 17 km to the south of Yanamina, sets a useful precedent for mining activity in the buffer zone.  Previous operators at Yanamina, Arequipa and LGL, were able to secure the issuance of required permits, drilling a total of 87 holes under separate drill permits.

An environmental impact study ("EIS") is a requirement of the exploration work permit application, and a community baseline report ("CBR") is a component of the EIS.  Valid work permits for exploration activities at Yanamina were issued as recently as 2007 (expired in 2010).  However, due to issues arising from activities apparently carried out by a subsidiary of a major energy company involving water extraction from a local reservoir/lake, the local community of Cruz de Mayo successfully opposed the issuance of a permit for further exploration work applied for by Coronet Peru (then owned by LGL/WRL) in 2010.  Wealth believes that the issues arising from this event can be satisfactorily resolved, and that the local communities can be successfully involved in the process of moving the development of Yanamina forward.

Wealth's initial objective is to establish a long term Community Agreement with the Cruz de Mayo community and other surrounding communities that would be affected by operations at Yanamina in order to secure the necessary social license to be able to proceed with application for the required permits.  The Company intends to allocate the required time and funding to carry out the work estimated to be necessary to secure the Community Agreement, carry out the EIS and complete the permit applications.

Following the issuance of the required permits, Wealth's initial focus would be to complete resource expansion and definition drilling at Yanamina.  Much of the early drilling at Yanamina was focused on the upper zone and was too shallow to intersect the lower zone.  Drillholes in the deposit average 61 metres in depth, although drillholes intersecting only the upper zone average only about 30 to 40 metres in depth.  Future work will focus on infill drilling in the lower zone in the areas north and south of the known deposit before expansion drilling begins.

Qualified Person

Marian Myers , M.Sc., P.Geo., a qualified person as defined by National Instrument 43-101, has reviewed the scientific and technical information that forms the basis for portions of this news release, and has approved the disclosure herein.  Ms Myers is not independent of the Company, as she is a shareholder and a consultant to the Company.


Wealth is an early stage mineral exploration company with listings on the TSX Venture and Frankfurt Stock Exchanges.  The planned acquisition of the Yanamina Gold Project is consistent with Wealth's project acquisition policy requiring stable geopolitical project locations, low exploration risk, attractive grade, and potentially low capital requirements.  While Wealth is not a development company, management insists that projects to be acquired have a reasonable potential for near-term production.  The Company also intends to negotiate partnerships that might open up potential project development routes.

On Behalf of the Board of Directors of

"Hendrik van Alphen"
Hendrik van Alphen
President & CEO

For further details on the Company readers are referred to the Company's web site (www.wealthminerals.com) and its Canadian regulatory filings on SEDAR at www.sedar.com.

Neither 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 press release, which has been prepared by management.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian and US securities legislation.  All statements, other than statements of historical fact, included herein including, without limitation, statements regarding the proposed acquisition by the Company of Coronet Peru, and thereby the Yanamina Gold Project; the Company's belief that the social issues arising from past events in the communities surrounding Yanamina can be satisfactorily resolved, and that the local communities can be successfully involved in the process of moving the development of Yanamina forward; the Company's belief that it will be able to secure a long-term community agreement and the social license necessary to proceed with the application for and issuance of permits for exploration work at Yanamina; the Company's belief that it will be able to secure the required permits for its activities at Yanamina; the proposed execution and delivery of the required formal documentation in connection with the acquisition of Yanamina; the completion of the acquisition of Yanamina by the Company; the Company's expectation that the Yanamina project might have a reasonable prospect for lower capital costs and near-term production; the anticipated content, commencement, timing and cost of exploration programs, anticipated exploration program results, the discovery and delineation of mineral deposits/resources/reserves, the potential for a combination of confirmatory drilling and exploration drilling to add to the mineralization at Yanamina; the potential for any mining at or production from Yanamina, either in the near-term or at all; the potential for the Company to negotiate partnerships that might open up potential project development routes; and the anticipated business plans and timing of future activities of the Company, are forward-looking statements.  Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct.  Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events.

The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward looking statements as a result of various factors, including, but not limited to, the state of the financial markets for the Company's equity securities, the state of the commodity markets generally, variations in the nature, quality and quantity of any mineral deposits that may be located, variations in the market price of any mineral products the Company may produce or plan to produce, the inability of the Company to settle the required formal documentation necessary to acquire Yanamina, to close the transaction even if such documentation is completed or to secure the necessary social license to proceed with work at Yanamina; the inability of the Company to obtain any necessary permits, consents or authorizations required, including TSXV acceptance, for its activities, the inability of the Company to produce minerals from its properties successfully or profitably, to continue its projected growth, to raise the necessary capital or to be fully able to implement its business strategies, and other risks and uncertainties disclosed in the Company's latest interim Management Discussion and Analysis and filed with certain securities commissions in Canada.  All of the Company's Canadian public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials, including the technical reports filed with respect to the Company's mineral properties.

Caution Regarding Adjacent or Similar Mineral Properties

This news release contains information with respect to adjacent or similar mineral properties in respect of which the Company has no interest or rights to explore or mine. Readers are cautioned that the Company has no interest in or right to acquire any interest in any such properties, and that mineral deposits, and the results of any mining thereof, on adjacent or similar properties are not indicative of mineral deposits on the Company's properties or any potential exploitation thereof.

SOURCE Wealth Minerals Limited

Image with caption: "Figure 1: Location of the Yanamina Gold Deposit (CNW Group/Wealth Minerals Limited)". Image available at: http://photos.newswire.ca/images/download/20150401_C1970_PHOTO_EN_13830.jpg

Read the rest of the article at finance.yahoo.com
Data and Statistics for these countries : Canada | Peru | All
Gold and Silver Prices for these countries : Canada | Peru | All

Wealth Minerals Ltd.

ISIN : CA9468851006
Follow and Invest
Add to watch list Add to your portfolio Add or edit a note
Add Alert Add to Watchlists Add to Portfolio Add Note
Projects & res.
Asset profile
Contact Cpy

Wealth Min. is a gold and cobalt exploration company based in Canada.

Wealth Min. holds various exploration projects in Argentina.


Wealth Min. is listed in Canada, in Germany and in United States of America. Its market capitalisation is CA$ 14.8 millions as of today (US$ 11.8 millions, € 10.3 millions).

Its stock quote reached its highest recent level on December 31, 2007 at CA$ 6.12, and its lowest recent point on November 07, 2014 at CA$ 0.03.

Wealth Min. has 77 660 000 shares outstanding.

Your feedback is appreciated, please leave a comment or rate this article.
Rate : Average note :0 (0 vote) View Top rated
In the News and Medias of Wealth Minerals Ltd.
4/1/2017Wealth Minerals begins sampling at Chile's Laguna Verde lith...
Annual reports of Wealth Minerals Ltd.
2008 Annual Report
2006 Annual report
Financings of Wealth Minerals Ltd.
3/11/2013Closes Non-Brokered Private Placement
3/11/2013Closes Non-Brokered Private Placement
1/21/2013Arranges Non-Brokered Private Placement and Debt Settlement
10/26/2009 Closes Non-Brokered Private Placement - New Director Appoin...
9/30/2009Arranges Non-Brokered Private Placement
9/10/2009Closes Non-Brokered Private Placement
8/12/2009Arranges Non-Brokered Private Placement
11/14/2008Closes Non-Brokered Private Placement
9/25/2008Announces Non-Brokered Private Placement
Project news of Wealth Minerals Ltd.
6/3/2011(Rodeo De Los Molles)Commences Drilling on Its Rodeo de los Molles Rare Earth Ele...
3/23/2011(Borono Novo)Commences Discovery Drilling Campaign on Its Bororo Nuevo Ur...
9/19/2008(Pampa Coria)Discovers Outcropping Copper-Gold Porphyry and Uranium Syste...
9/17/2008(San Jose)Discovers Additional High-Grade Uranium
9/9/2008(Macusani)(Revised) Discovers Outcropping Uranium Mineralization
5/2/2008(San Jose)Discovers New Zone of High-Grade Uranium
5/1/2008(Diamante - Los Patos)New Drilling Results at the Bingo Zone
4/15/2008(San Jose)Defines Large Copper Target at San Jose Property
1/30/2008(Diamante - Los Patos)Drilling Continues to Intersect Broad Zones of Uranium
12/5/2007(Diamante - Los Patos)Intersects Large, Potential Bulk Tonnage at Diamante-Los Pat...
10/25/2007(Diamante - Los Patos) Commences 10,000 metre drilling campaign on its Diamante-Lo...
Corporate news of Wealth Minerals Ltd.
6/22/2016Wealth Signs LOI to Acquire Balance of Salar de Aguas Calien...
6/16/2016Wealth Signs LOI to Acquire Pujsa Lithium Project, Salar de ...
6/8/2016Wealth Closes Financing of $2,000,000
6/7/2016Wealth Appoints Tim McCutcheon as President Arranges Non-Bro...
5/31/2016Wealth Completes Listing on OTCQB® Exchange
4/27/2016Wealth Signs LOI to Acquire Puritama Project Salar de Aguas ...
4/21/2016Wealth Closes $1,000,000 Financing
4/18/2016Wealth Announces Appointment of Marcelo A. Awad as Executive...
2/2/2016U.S. lithium firm Albemarle plans to more than double Chile ...
2/1/2016Wealth Enters into Exclusive LOI to Negotiate Agreement to A...
12/30/2015Wealth Closes $540,000 Non-Brokered Flow-through Private Pla...
12/29/2015Wealth Closes $540,000 Non-Brokered Flow-through Private Pla...
12/17/2015Wealth Outlines Coronado Plans
10/15/2015Wealth Renegotiates Mexican Silver Project Option
10/9/2015Wealth Grants Stock Options
10/8/2015Wealth Closes Acquisition of Yanamina Gold Project, Peru
8/17/2015Wealth Completes $450,000 Non-Brokered Private Placement
8/5/2015Wealth Appoints Tang Chief Operating Officer & Director
7/27/2015Wealth Signs Definitive Agreement for Option to Acquire up t...
7/13/2015Wealth Shares Listed on the Foreign Securities Market of the...
6/24/2015Wealth Grants Stock Options
4/7/2015Wealth Grants Stock Options
4/1/2015Wealth Enters into Exclusive LOI to Negotiate Agreement to A...
3/31/2015Wealth Closes $720,000 Non-Brokered Private Placement
2/27/2015Wealth Closes $750,000 Non-Brokered Private Placement
2/23/2015Wealth Arranges $720,000 Non-Brokered Private Placement
2/2/2015Wealth Options N1/N2 Gold Project from Balmoral Resources Lt...
2/2/2015Balmoral Options N1-N2 Project to Wealth Minerals
1/21/2015Wealth Completes Share Consolidation and Debt Settlement
7/9/2013Crosshair Terminates Letter of Intent with Wealth Minerals
7/4/2013Amends Option Grant of 3,150,000
6/21/2013Grants 3,150,000 Options
10/25/2012Enters Into LOI to Sell Argentinean Uranium Projects to Cros...
10/2/2012Confirms Potential for Bulk-Tonnage Silver at Valsequillo Pr...
9/13/2011Tue. Sep. 13/11
7/7/2011Surface Sampling Expands Known Zones of High-Grade Rare Eart...
5/4/2011Intersects Potentially Large, Bulk Tonnage, Uranium System a...
4/11/2011Initial Sampling Confirms Presence of High-Grade Rare Earth ...
3/23/2011News Release
5/27/2010Signs Option to Acquire Argentina’s Largest Rare Earth Eleme...
9/2/2008Vientos Property Hosts Large Outcropping Uranium Zone
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
CA$ 0.190
04/17 16:41 -
Prev close Open
0.190 0.190
Low High
0.190 0.190
Year l/h YTD var.
0.180 -  0.270 -26.92%
52 week l/h 52 week var.
0.180 -  0.435 -51.90%
Volume 1 month var.
83,050 -%
24hGold TrendPower© : 50
Explores for Uranium - Vanadium
Interactive chart Add to compare
Print Compare Export
Last updated on : 2/24/2010
You must be logged in to use the porfolio and watchlists (free)
Top Newsreleases
Annual variation
5 years chart
3 months chart
3 months volume chart
Mining Company News
Plymouth Minerals LTDPLH.AX
Plymouth Minerals Intersects Further High Grade Potash in Drilling at Banio Potash Project - Plannin
AU$ 0.12-8.00%Trend Power :
announces expected non-cash impairment
AU$ 7.68-0.52%Trend Power :
Oceana Gold(Au)OGC.AX
AU$ 2.20+0.00%Trend Power :
Western Areas NL(Au-Ni-Pl)WSA.AX
Advance Notice - Full Year Results Conference Call
AU$ 3.86+0.00%Trend Power :
Canadian Zinc(Ag-Au-Cu)CZN.TO
Reports Financial Results for Q2 and Provides Project Updates
CA$ 0.12+4.55%Trend Power :
Stornoway Diamond(Gems-Au-Ur)SWY.TO
Second Quarter Results
CA$ 0.02+100.00%Trend Power :
McEwen Mining(Cu-Le-Zn)MUX
US$ 10.89-1.36%Trend Power :
Rentech Announces Results for Second Quarter 2017
US$ 0.20-12.28%Trend Power :
Reduced Funding Requirement
GBX 0.55-0.72%Trend Power :
Lupaka Gold Corp.LPK.V
Lupaka Gold Receives First Tranche Under Amended Invicta Financing Agreement
CA$ 0.06+0.00%Trend Power :
Closes Bridge Loan Financing
CA$ 2.36-3.28%Trend Power :
Guyana Goldfields(Cu-Zn-Pa)GUY.TO
Reports Second Quarter 2017 Results and Maintains Production Guidance
CA$ 1.84+0.00%Trend Power :
Lundin Mining(Ag-Au-Cu)LUN.TO
d Share Capital and Voting Rights for Lundin Mining
CA$ 15.64+2.69%Trend Power :
Canarc Res.(Au)CCM.TO
Canarc Reports High Grade Gold in Surface Rock Samples at Fondaway Canyon, Nevada
CA$ 0.24+2.17%Trend Power :
Q A April 2017 Quarterly Report
AU$ 0.20+7.89%Trend Power :
Uranium Res.(Ur)URRE
Commences Lithium Exploration Drilling at the Columbus Basin Project
US$ 6.80-2.86%Trend Power :
Platinum Group Metals(Au-Cu-Gems)PTM.TO
Platinum Group Metals Ltd. Operational and Strategic Process ...
CA$ 1.87+6.25%Trend Power :
Devon Energy(Ngas-Oil)DVN
Announces $340 Million of Non-Core Asset Sales
US$ 51.67-0.98%Trend Power :
Precision Drilling(Oil)PD-UN.TO
Announces 2017Second Quarter Financial Results
CA$ 8.66-0.35%Trend Power :
2nd Quarter Report
AU$ 0.03-2.94%Trend Power :