Atacama Minerals: Aguas Blancas Royalty Purchase
VANCOUVER, BRITISH COLUMBIA--ATACAMA MINERALS CORP. ("the
Company") is pleased to announce that it has entered into a
Purchase and Sale Agreement with S.L.M. Petronila Doscientos
Sesenta y Nueve del Sector de Aguas Blancas de Antofagasta
("Petronila"), the underlying royalty holder, whereby the Company
will purchase 100 percent of Petronila's existing and future
rights, title and interest pertaining to the Company's Aguas
Blancas Project in Chile. The principle resource of the Project is
an abundant economic reserve of iodine, supported by added sodium
sulphate and nitrate minerals contained in the near surface
deposits.
In consideration for the transfer by Petronila to the Company, the
Company will pay to Petronila US$4.8 million (the "purchase
price") in annual instalments over a fifteen year period, bearing
simple interest at the rate of 5 percent per annum. The purchase
agreement now provides predictability of scheduled payments spread
over the life of construction and operation of the mine. The
Company will also have the right to pay out the balance of the
purchase price, with accumulated interest to the date of such
payout, at any time without penalty.
Mr. Adolf Lundin, Chairman and President of the Company, has
agreed to personally guarantee the payment of the purchase price.
In consideration for such guarantee, Mr. Lundin shall receive,
among other things, a bonus of 677,724 shares of the Company
(equivalent to 5 percent of the amount of funds guaranteed.) The
transaction details are currently being finalized and the first
payment of US$500,000 is expected to be made on or before June 18,
1999, the scheduled closing date of the transaction.
The Company also reports that two small scale heap leach pads are
in operation at the site to confirm metallurgical parameters
needed for full scale facility construction. A small quantity of
crude iodine has already been produced from the pad solutions
confirming extraction will occur with standard Chilean iodine
recovery practices. These small scale pad operations combined with
reserve investigations targeted to identify high grade reserves
(repasos) most amenable to heap leaching, are the final steps in
the program to confirm the detailed parameters of starting the
Aguas Blancas Project into its first operational phase as a heap
leach iodine facility, producing 1,000 tonnes per year. Sufficient
information is expected to be in hand on the heap leach facility
to enable project financing to be completed prior to a
construction start late in the third quarter. |
