Rio has been busy lately:
Friday December 3, 1:17 pm Eastern Time
Company Press Release
APAC Minerals Inc. Signs Agreement With Rio Tinto Mining And Exploration Ltd.
VANCOUVER, BRITISH COLUMBIA--The Company is pleased to announce that a Letter Agreement has been signed between the Company and Rio Tinto Mining and Exploration Ltd. for further development of the Company's Los Menucos property, located in the Rio Negro province, in southern Argentina.
The terms of the Agreement are as follows:
Rio Tinto will conclude a private placement for 583,333 common shares of the Company for aggregate proceeds of 700,000 USD ($1,032,5,00 CDN) at a price of 1.20 USD ($1.77 CDN) per share. The proceeds will be mainly used to fund additional exploration, which will include diamond drilling of targets on the Los Menucos property, during a period of 8 months.
Rio Tinto will have the right, during the 8 month period, to conclude an option agreement on one or more defined targets within the Los Menucos property.
The option agreement(s) on each target area will include the following basic terms.
Rio Tinto will have the right to earn an initial 55% interest in each target area by spending US$ 2 million on the defined area.
Rio Tinto can earn an additional 15% interest in the target area, for an aggregate 70% interest in the target area, by spending an additional US$ 8 million or by making a decision to develop a mine prior to completing the US$ 8 million expenditures.
Rio Tinto can earn an additional 5% interest in the target area, for an aggregate 75% interest in the target area, by spending an additional US$ 10 million or by making a decision to develop a mine prior to completing the US$ 10 million expenditure.
Rio Tinto has to exercise its option to earn the 70% or 75% interest, as the case may be, before the sixth anniversary of the option agreement.
Upon Rio Tinto earning 55%, 70% or 75%, as the case may be, the Company has the right to enter into a joint venture agreement to participate in pro rata funding. The joint venture agreement will contain standard clauses for such agreements including a dilution clause.
After Rio Tinto has earned either a 70% or 75% interest, as the case may be, the Company has an option to elect to have Rio Tinto providing the financing for its interest through to commencement of production, in which event Rio Tinto's interest will increase to 80%.
The Los Menucos property cover 105,000Ha and contain widespread high sulphidation epithermal gold mineralization. The target areas referred to above will be selected jointly by Rio Tinto and the Company's management.
Two targets areas have been defined to date: Cuya - Aguadita and El Puesto - Caltrauna. These two target areas have the potential to host multimillion ounces deposits which could meet Rio Tinto's requirements in terms of ``size' and ``grade'. There is a possibility that more target areas might be discovered during the next 8 months.
Within the above target areas the Company has carried out detailed geological mapping, ground geophysics (magnetic and IP) and, more recently, a 4,000m scout reverse circulation drilling program. Each of the target areas covers 2-5 sq. km. of potential mineralization as defined by strong alteration, abundant silica and anomalous gold from rock samples.
As only a small part of the areas were recently drill tested, and then only to depths of 50 to 80 metres, significant exploration potential exists in all defined areas. As previously disclosed by news releases, EP 2 (El Puesto) had 36m of 1.3g/t Au including 24m of 1.76g/t Au and CT 9 (Caltrauna) had 50m of 1.4g/t Au including 12m of 2.44g/t Au.
Field work is expected to re-commence early in the new year and will include deeper core drilling to a least 200 metre depths on a number of targets.
ON BEHALF OF THE BOARD OF DIRECTORS
Tore Birkeland, President
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Contact:
APAC Minerals Inc.
Tore Birkeland
President
(604) 683-8018
(604) 683-8538
Email: info@apacminerals.com
Website: www.apacminerals.com |
