NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: RIO AMARILLO MINING LTD.
VSE SYMBOL: RIO
JUNE 16, 1997
Rio Amarillo Joint Venture Agreement with RTZ Mining and
Exploration Limited Sucursal Peru - Aija Property,
Central Peru
VANCOUVER, BRITISH COLUMBIA--RIO AMARILLO MINING LTD. ("RIO") is
pleased to announce that RIO has signed a formal Joint Venture
Agreement with RTZ Mining and Exploration Limited Sucursal Peru
(RTZ- CRA) whereby RTZ-CRA can earn a 65 percent interest in RIO's
Aija Property located in central Peru. The Letter of Intent
announcing this Agreement, subject to various legal approvals, was
included in RIO's News Release of February 3, 1997. Under the
terms of the Joint Venture Agreement, RTZ-CRA can earn their
interest for a cash expenditure of US$3.890 million by June 1999.
The cash expenditures include US$1.500 million in work commitments
and US$2.390 million in underlying option payments. These
payments are at the option of RTZ- CRA and RTZ-CRA may elect to
withdraw from the Agreement at any time.
The Aija property is located 35 kilometres south of Barrick Gold's
Pierina property. During the first nine months of 1996, RIO
carried out a 20 hole drilling program on a series of tourmaline
breccia bodies on the north side of the Aija River which has
demonstrated the presence of gold, silver and copper
mineralization. The south side of the Aija River exhibits
lithologies and alteration that are similar to those associated
with porphyry copper deposits and it is the area that is targeted
for the initial phases of the proposed exploration program.
RTZ-CRA has constructed drill pads on the south side of the Aija
River and it is anticipated that drilling will commence during the
month of June.
RIO is a mineral exploration and development company engaged in
locating, evaluating, acquiring, and, contingent upon obtaining
satisfactory exploration program results, developing mineral
properties in South America. The Company aggressively seeks value
added opportunities on its own or with others in areas of its
primary focus.
On Behalf of the Board of Directors of
RIO AMARILLO MINING LTD.
James K. Wright, President |
