EMC - Ecuadorian Minerals Corp
Based on a news release concerning a JV today (below), I bought in @ 1.33 expecting a significant increase over the next few months.
Anyone else interpret the news the same way?
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NOVEMBER 21, 1996
Ecuadorian to Joint Venture Beroen Property with Newmont
SCOTTSDALE, ARIZONA--Ecuadorian Minerals Corporation ("EMC") is
pleased to announce that the Company has signed a Letter of Intent
with Newmont Mining Corporation ("Newmont") on a portion of the
Company's large Beroen gold property in Ecuador. Newmont can
acquire up to an 80 percent interest in the remaining part of the
property that is not subject to an existing joint venture
agreement between EMC and RTZ signed in June 1996.
The property comprising the Newmont joint venture area includes
four exploration concessions totaling approximately 9,859 hectares
(99 sq km) and is located 45 km northeast of EMC's Gaby gold
project and immediately north of RTZ's Canoas concession (see
attached map), where drilling is reported to have commenced.
EMC's exploration program to date has identified several large
areas with anomalous precious and base metal values reporting up
to 0.5 g/t gold in stream sediments and up to 0.12 percent copper
and 0.22 percent molybdenum in rock samples of highly altered and
stockworked intrusive.
Under the terms of the Letter of Intent, Newmont will be operator
and can acquire an initial 60 percent interest by making cash
payments to EMC of US$1.8 million over 6 years (including required
payments to underlying property owners of US$1.5 million) and by
expending a work commitment of US$1 million over the same period,
including a guaranteed minimum of US$150,000 in the first two
years. Newmont may earn an additional 20 percent interest (total
80 percent) by completing a feasibility study within 7 years,
which may be extended to a maximum of 10 years with additional
payments of US$100,000 per year to EMC over the last three years.
EMC will hold a 40 percent carried interest up to the completion
of the feasibility study and a 20 percent participating interest
following completion of this study. This 20 percent participating
interest will revert to a 3 percent net smelter royalty if EMC's
participating interest is diluted to less than 10 percent.
The Letter of Intent is subject to final EMC and Newmont Board
approvals in addition to regulatory approval and will be replaced
as soon as possible by a formal agreement.
ON BEHALF OF THE BOARD
Stephen J. Kay, President and CEO
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Regards,
Wayne Wolinski |
