[Marinir] {Disarmed} Cerro Grande (TSX: CEG) to Acquire Gold Property Adjacent to Exeter’s Caspiche Project
Infostock
info at infostockbiz.com
Wed Jul 13 20:16:41 CEST 2011
To view this message in a browser:
http://www.actonsoftware.com/acton/ct/1523/s-000b-1107/Bct/l-0002/l-0002:15bcd/ct0_1/1
http://www.cegmining.com/
Cerro Grande Mining Corporation Announces the Signing of a Letter
Agreement on the Santa Cecilia Property Located Adjacent to Exeter
Resources' Caspiche Project in the Maricunga District of Chile
FOR IMMEDIATE RELEASE - July 13, 2011
Toronto, Ontario, Canada - Cerro Grande Mining Corporation (the
"Company" or "CEG") ( TSX - CEG
http://www.stockwatch.com/Quote/Detail.aspx?action=go&symbol=CEG®ion=C&lookup=symbol&snapshot=default
) (formerly South American Gold and Copper Company Limited or "SAGC")
announced today the signing of a Letter Agreement with Mario Hernandez,
Dr. David Thomson and Merwin Bernstein, (the "Majority Shareholders"),
in aggregate owners of 65.6% of Compania Minera Cerro del Medio ("CDM")
after CEG's board of directors approved the terms of the Letter
Agreement. The Letter Agreement is subject to final approval by the
Toronto Stock Exchange.
CDM is the 100% owner of the Santa Cecilia Property which covers 3,251
hectares of claims in the Maricunga District of Chile. The eastern claim
boundary of the Santa Cecilia Project lies adjacent to Exeter Resources'
Caspiche Project claims. The Caspiche Project has published measured and
indicated resources of 21.3 million ounces of gold, 5.3 billion pounds
of copper and 48.4 million ounces of silver. The measured and indicated
resource is based on 1,316 Mt (million metric ton) at a grade of 0.50
g/t gold (grams per metric ton) and 1.14 g/t of silver including 1,217
Mt at a grade of 0.18% copper. The Santa Cecilia Property and the
Caspiche Project are both close to the Kinross Maricunga gold mine 16
kilometres to the north and to the Barrick/Kinross Cerro Casale
gold/copper project 14 kilometres to the south. All are part of Chile's
prolific Maricunga gold and copper porphyry district.
Under the terms of the Letter Agreement, CEG has the opportunity to
acquire at least 65.6% of CDM by conducting a diamond drilling campaign
consisting of a minimum of 7,200 metres estimated to cost approximately
US $4,000,000, of which CEG is committed to fund 65.6% (estimated US
$2,624,000) over a two year period commencing July 1, 2011.
CEG will engage a qualified engineering firm to supervise the drilling
campaign on Santa Cecilia. This firm will also update NI 43-101
technical reports on CEG's other projects and Santa Cecilia on
completion of the drilling campaign.
Following completion of the drilling campaign on Santa Cecilia and
receipt of the NI 43-101 technical reports, an evaluation (an
"Evaluation") of CEG and CDM will be undertaken by a competent,
independent investment banking group to value CEG and CDM. On completion
of a satisfactory Evaluation, CEG have ninety days in which to determine
if it wishes to proceed with acquiring the interest of the Majority
Shareholders in CDM.
Final approval of any such acquisition will likely require CEG
shareholder and Toronto Stock Exchange approval.
Under the terms of the agreement, CEG or CDM may terminate the Letter
Agreement under certain circumstances. Depending on the circumstance,
CEG will be reimbursed up to 125% of its share of drilling campaign
costs. CEG may terminate the agreement at any time after having drilled
not less than 1,500 metres.
Mario Hernandez (holder of 37.1% of CDM's issued and outstanding common
shares) and Dr. David R.S. Thomson (holder of 23.5% of CDM's issued and
outstanding common shares), are shareholders, directors and EVPs of CEG
and have held a majority interest in the Santa Cecilia Property since
1983. On this basis, the Letter Agreement, and any definitive
acquisitions agreement entered into following a satisfactory Evaluation
may constitute a related party transaction. While the Letter Agreement
has no immediate impact on the shareholdings of Mr. Hernandez and Dr.
Thomson in CEG, at this time CEG is unable to provide a description of
any impact that a definitive acquisition agreement may have on any such
shareholdings in CEG.
Prior to Hernandez and Thomson's involvement with Stephen Houghton and
SAGC (today CEG) in 1990, Anglo American had spent approximately US
$2,000,000, adjusted for inflation, for exploration on the Santa Cecilia
Property before eventually dropping the option.
In 2002, Stephen Houghton and CDM had discussed an option in which CEG
(at that time SAGC) would have acquired 100% of the Santa Cecilia
Property. The option was dropped as metal prices and the company's
financial situation at the time did not allow CEG to explore the Santa
Cecilia Property.
The Majority Shareholders of CDM believe that their best long term
interests are the same as those of CEG's shareholders and view the
bringing of Santa Cecilia into CEG as a significant opportunity to
create value in CEG.
CDM has conducted Mobile Metal Ion geochemical and CSAMT geophysical
surveys on the Santa Cecilia property. These surveys have successfully
established the existence of a drill target in the shape of a large gold
and copper anomaly. This gold and copper drill target is 3,000 meters
directly west of the Caspiche measured and indicated resource.
CEG will continue to expand its exploration of the porphyry deposit at
Pimenton where the company's heavy duty diamond rig is drilling on an
ongoing basis while at the same time advancing production and
exploration on CEG's Pimenton gold mine. Pimenton is part of the central
Chilean copper porphyry belt that hosts some of the largest copper mines
in the world, while the Santa Cecilia Property gold copper porphyry is
in the Maricunga district that hosts some of the largest undeveloped
gold and copper deposits in the world.
CEG will continue to conduct exploration on its Tordillo and La Bella
prospects while at the same time contract drilling the Santa Cecilia
prospect.
The non-interested directors of CEG wish to thank Mr. Hernandez and Dr.
Thomson for bringing this unique opportunity to CEG. The combination of
CEG's Pimenton gold mine with its associated copper gold porphyry, plus
CEG's other prospects together with the Santa Cecilia gold copper
porphyry, will mean that favourable results on one or both of these
major prospects will give CEG the opportunity to become a significant
junior mining company.
Claim maps, geological reports and NI 43-101 reports that have been
completed to date on the Santa Cecilia prospect are on both the CEG web
site, www.cegmining.com and on the CDM web site www.cerrodelmedio.cl
http://www.cerrodelmedio.cl/
Cerro Grande Mining Corporation is a minerals producing, exploration and
development company with properties and activities currently focused in
Chile.
Registered Office:
79 WELLINGTON STREET WEST, SUITE 2300
TORONTO, ONTARIO M5K 1H1
CANADA Santiago Office:
LA CONCEPCION 266, OF. 704
PROVIDENCIA, SANTIAGO, CHILE
Telephone : 56-2-264-2295
E-Mail: ceg at cegmining.com
Website: www.cegmining.com
http://www.cegmining.com/
Toronto Office:
67 Yonge Street, Of. 1201
Toronto, Ontario
M5J 1J8 CANADA For further information, contact:
Stephen W. Houghton CEO
David R. S. Thomson, EVP
E-Mail: ceg at cegmining.com
Telephone: 56-2-264-2295
Website: www.cegmining.com
http://www.cegmining.com/
Cautionary Statement on Forward-looking Information
This news release contains "forward-looking information", which may
include, but is not limited to, statements with respect to the future
financial or operating performance of CEG. Often, but not always,
forward-looking statements can be identified by the use of words such as
"plans", "expects", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates", or "believes" or variations
(including negative variations) of such words and phrases, or state that
certain actions, events or results "may", "could", "would", "might" or
"will" be taken, occur or be achieved. Forward-looking statements
involve known and unknown risks, uncertainties and other factors which
may cause the actual results, performance or achievements of CEG to be
materially different from any future results, performance or
achievements expressed or implied by the forward-looking statements.
Forward-looking statements contained herein are made as of the date of
this press release based on current expectations and beliefs and CEG
disclaims, other than as required by law, any obligation to update any
forward-looking statements whether as a result of new information,
results, future events, circumstances, or if management's estimates or
opinions should change, or otherwise. There can be no assurance that
forward-looking statements will prove to be accurate, as actual results
and future events could differ materially from those anticipated in such
statements. Accordingly, the reader is cautioned not to place undue
reliance on forward-looking statements.
For more information about this service, please see:
www.infostockbiz.com
http://www.infostockbiz.com
--------------------------------------------------------------------------------
*********************************************************************
Disclaimer: KCrew Communications was paid to distribute this Infostock bulletin.
KCrew Communications may or may not own securities in this particular company.
THIS IS NOT A RECOMMENDATION TO BUY OR SELL ANY SECURITY!
You are on this mailing list because you registered for Infostock.
You may opt out at any time using the unsubscribe feature at the bottom of this email.
For more information about this service, please see http://www.infostockbiz.com
http://www.infostockbiz.com
KCrew Communications Inc. at 1.866.465.3616
Suite 1250 - 789 West Pender St., Vancouver, BC Canada V6C1H2.
This email complies with the US Federal CAN-SPAM Act of 2003
*********************************************************************
If you do not wish to receive futher emails Click Here
http://www.actonsoftware.com/acton/rif/1523/s-000b-1107/-/l-0002:15bcd/l-0002/zout
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://www.polarhome.com/pipermail/munindo/attachments/20110713/76de774a/attachment.html>
More information about the Munindo
mailing list