Monday June 21, 9:01 am Eastern Time
Company Press Release
General Minerals Corporation -- Completes JV Agreement with Asarco on Escalones
DENVER--(BUSINESS WIRE)--June 21, 1999--General Minerals Corporation (''GMC'') (TSE:GNM - news) is pleased to announce that the final joint venture agreement with Asarco Incorporated (''Asarco'') on the Escalones copper-gold-molybdenum skarn and porphyry prospect located in central Chile has been signed.
This agreement reflects the terms of the Letter Agreement dated April 20, 1999 (see GMC PR99-08, April 26, 1999). The following initial payments under the agreement have been made to GMC:
1. US$500,000 cash payment; and
2. Repayment of expenses of approximately US$330,000 at Escalones incurred since April 20, 1999.
In addition, Asarco purchased 500,000 common shares and 500,000 warrants for a total of Cdn.$625,000. Each warrant entitles Asarco to purchase an additional common share at a price of Cdn$1.30 per share until June 21, 2004.
Funding by Asarco for exploration during the first year includes a minimum of US$2.5 million. GMC will manage operations for the first two years. Ralph Fitch, President and CEO of GMC, added, ''We welcome Asarco as our partner and look forward to aggressively continuing our exploration effort at Escalones. The payments are an important addition to our treasury which now stands at Cdn$10 million.''
General Minerals Corporation is an international exploration company formed for the acquisition, exploration and development of mineral resources, primarily copper, gold and silver. The Company is currently focusing on five advanced exploration projects in Chile and Bolivia.
--------------------------------------------------------------------------------
Contact:
General Minerals Corporation
Richard Doran, 303/863-7934
Fax: 303/863-7965
ddoran@generalminerals.com
www.generalminerals.com
|
