Anaconda target Colorado signs MOU for Carmen
2007-02-06 11:56 ET - News Release
Mr. Lew Lawrick reports
ANACONDA'S COLORADO MINERALS SIGNS WITH PENOLES ON CARMEN PROJECT IN CHILE
Colorado Minerals Inc., the company Anaconda Gold Corp. is acquiring (please see press release in Stockwatch dated Jan. 9, 2007), has signed a memorandum of understanding (MOU) with Industrias Penoles S.A. de C.V. to negotiate a definitive agreement to jointly explore and develop Colorado's Carmen copper-gold project in the Inca de Oro district, Chile.
Penoles, via its wholly owned subsidiary, Minera Penoles de Chile Ltda., will have the right to earn a 65-per-cent interest over a 42-month period by spending a total of $22-million (U.S.). Of this amount, $12-million (U.S.) will comprise cash payments to Colorado and $10-million (U.S.) will comprise direct exploration expenditures on the project.
On signing of an exploration and earn-in agreement within 60 days of the signing of the MOU, Penoles will pay Colorado $3-million (U.S.) and will spend $3-million (U.S.) within the next 12 months on exploration, including but not limited to 12,000 metres of drilling.
During the second 12-month period, Penoles will pay Colorado $3-million (U.S.) and spend an additional $3-million (U.S.) on exploration, including but not limited to, 15,000 metres of drilling.
During the third 12-month period, Penoles will pay Colorado $3-million (U.S.) and will spend $4-million (U.S.) on exploration. At the end of the 42-month period, Penoles will pay Colorado a final payment of $3-million (U.S.).
Penoles can also elect to finance the preparation of a bankable feasibility study in return for an additional 5-per-cent interest.
The companies have agreed to complete the exploration and earn-in agreement within 60 days of signing of the MOU and to complete the definitive agreement no later than May 15, 2007.
"Penoles involvement with us is a significant validation of our belief that the Carmen copper-gold project and the entire Inca de Oro district represents an important potential mining area," Lew Lawrick, the new chairman and chief executive officer of Anaconda, and the founder and president of Colorado Minerals, said. "We're delighted to have Penoles with its proven strength and expertise in exploration, project management, and mining operations as our partner in Chile," Mr. Lawrick added.
Penoles is Mexico's largest mining company with integrated operations in smelting and refining non-ferrous metals, and chemical production. Penoles is the world's top producer of refined silver, metallic bismuth and sodium sulphate, as well as the leading Latin American producer of refined gold, lead and zinc.
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