(COMTEX) B: Cerro Dorado, Inc. Signs Agreement With Phelps Dodge Subs
B: Cerro Dorado, Inc. Signs Agreement With Phelps Dodge Subsidiary
SALT LAKE CITY, Jun 8, 2000 (BUSINESS WIRE) -- Cerro Dorado, Inc. is pleased to
announce the signing of an agreement with Compania Contractual Minera Ojos del
Salado ("CCMO") a Chilean subsidiary of Phelps Dodge Corporation. This agreement
gives Cerro Dorado, Inc.("CDCH") the right to earn and purchase up to a 100%
interest in 1,354 hectares of mining concessions owned by CCMO surrounding the
Milagro property located in Region III in Northern Chile. CDCH now has Option
Agreements over approximately 1,650 hectares in the area.
Under the terms of the agreement, CDCH must spend a total of US $525,000 in
exploration on the CCMO mining claims over the next 3-year period to earn an
initial forty-percent (40%) interest. After CDCH has earned its initial
interest, CCMO has the option to maintain its sixty percent (60%) interest by
contributing pro-rata to a joint venture partnership between CDCH (40%) and CCMO
(60%). If CCMO chooses not to contribute funding to maintain its 60% interest,
then CDCH has the unconditional right to purchase an additional twenty percent
(20%) from CCMO for US $200,000 (CDCH 60%, CCMO 40%), or an additional forty
percent (40%) for US $400,000 (CDCH 80%, CCMO 20%), or an additional sixty
percent (60%) for US $600,000 (CDCH 100%). CCMO will retain a ten percent (10%)
net proceeds royalty in the property.
The management of CDCH believes that the Milagro property and surround area has
the potential to host a large gold or gold/copper deposit. Last March, CDCH
conducted an initial sampling and mapping program on the Milagro property and
received encouraging results that showed strong gold and copper mineralization
at surface in several areas. This work also demonstrated that large parts of the
property are underlain by a strongly altered porphyry system that locally has
been shown to contain highly anomalous gold, copper and other base metal values.
On behalf of the Board of Directors
Per: Richard W. Cahoon, President
Note: This News Release may contain certain "forward-looking statements" within
the meaning of the United States Securities Exchange Act of 1934, as amended.
All statements, other than statements of historical fact, included in this
release, including, without limitation, statements regarding potential
mineralization and reserves, exploration results, and future plans and
objectives of Cerro Dorado, Inc., are forward-looking statements that involve
various risks and uncertainties. There can be no assurance that such statements
will prove to be accurate, and actual results and future could differ materially
from those anticipate in such statements. Important factors that could cause
actual results to differ materially from the Company's expectations are
disclosed under the heading "Risk Factors" and elsewhere in documents filed from
time to time with the United States Securities and Exchange Commission and other
regulatory authorities.
CONTACT: Cerro Dorado
Investor Relations
801/484-2668
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KEYWORD: UTAH INTERNATIONAL LATIN AMERICA
INDUSTRY KEYWORD: ENERGY
MINING/METALS
MARKETING
AGREEMENTS
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