Cominco JV with Solitario
With reference to my earlier comments regarding the above a Cominco News release last December follows:
Quote
Canada NewsWire
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Attention Business Editors:
MAJOR JOINT VENTURE SIGNED WITH COMINCO ON SOLITARIO'S BONGARA ZINC
PROJECT
DENVER, Colo., Dec. 30 /CNW/ - Solitario Resources Corporation today
reported that it has signed an agreement with Cominco Peru s.r.l., a
subsidiary of Cominco Ltd. of Canada, regarding a joint venture arrangement on
its Bongara zinc project in northern Peru. Cominco can fully earn a 60%
interest in the project by spending US$27.5 million on exploration and
development over the next four years, by making escalating cash payments to
Solitario and by fully funding the project through a bankable feasibility
study. Cominco also has agreed to finance all project development costs,
subject to repayment, after a production decision is made, if Solitario does
not secure third-party funding.
The following table provides the schedule of work expenditures by Cominco
plus cash payments to Solitario. All amounts are expressed in U.S. dollars.
--------------------------------------------------------------
NON-CUMULATIVE CUMULATIVE
ON OR BEFORE CASH PAYMENTS EXPENDITURES
--------------------------------------------------------------
January 2, 1997 $250,000 -
--------------------------------------------------------------
January 31, 1998 $300,000 $2.5 million
--------------------------------------------------------------
January 31, 1999 $350,000 $7.5 million
--------------------------------------------------------------
January 31, 2000 $400,000 $17.5 million
--------------------------------------------------------------
January 31, 2001 $500,000 $27.5 million
(and annually, thereafter)
--------------------------------------------------------------
Cominco can elect to extend the four-year work commitment term by up to
an additional three years by spending a minimum of $2.5 million annually on
exploration, making the regularly scheduled cash payment to Solitario and
escalating the total cumulative work commitment by an additional $2.5 million
for every year in which Cominco elects to spend at a reduced level. For
example, if Cominco elected reduced $2.5 million annual expenditures for the
maximum allowable period of three years, it would be required to spend $35
million in exploration and development over a seven-year period to fully earn
its 60% interest.
This agreement is subject to regulatory approval from the Toronto Stock
Exchange. Other provisions of the agreement call for a first year minimum
drilling commitment of 4,000 meters, and Cominco's right to drop out of the
joint venture at any time after its first year's work commitment is completed.
Solitario began working on the Bongara project in 1994 after securing a
mineral lease on 25,000 acres covering a zinc oxide deposit. Subsequent
regional exploration work revealed excellent exploration potential for
Mississippi Valley type zinc deposits. Consequently, Solitario expanded its
claim position to over 170,000 acres. This regional exploration effort
culminated with the recent Florida Canyon discovery. At Florida Canyon,
several spectacular high-grade zinc sulfide zones have been discovered and
sampled in detail. The results of this sampling program have been previously
reported.
Christopher E. Herald, President of Solitario, stated, ``Our three-year
exploration effort and confidence in the mineral potential of the region were
confirmed by the terms of this joint venture agreement. An additional
attraction for selecting Cominco as our partner is its 82% ownership in the
Cajamarquilla zinc refinery located just east of Lima.''
Solitario is a gold and base metals exploration company actively
exploring in Peru and Argentina. Solitario is a 60%-owned subsidiary of Crown
Resources Corporation and is traded on the Toronto Stock Exchange under the
symbol SLR.
-30-
For further information: Debbie W. Mino: (800) 229-6827 or (713) 682-4070, dwmino(at)compassnet.com; Christopher E.
Herald, (303) 534-1030
This press release concerns more than one organization.
To view releases from one of these organizations, please select from below.
SOLITARIO RESOURCES CORPORATION
COMINCO PERU S.R.L.
COMINCO LTD.
unquote
This was the reason for my Solitario investment as Cominco is a large Cdn Zinc producer and has been kind to me in earlier times.
Keith |
