SUNR Press Release:
Sun River Mining Inc. Announces Contract Signing
DENVER--(BUSINESS WIRE)--Jan. 11, 1999--Sun River Mining Inc.'s (OTC BB:SUNR - news) Bolivian subsidiary, Grupo Inversor Rio Del Sol S.A. (''Rio Del Sol''), has entered into an agreement with Cooperativa Minera Aurifera 26 de Septembre Poroma Ltda. (the ''Cooperative'') which grants Rio Del Sol the exclusive rights of exploration/development and exploitation of a producing mine on two concessions near the Challana River in the Tipuani Gold Mining District of Bolivia. The two concessions cover approximately 1,670 acres. Initial exploration and development work had been done by Giovanni Viscarra who has 15 years geological exploration and mine development experience in the Tipuani Mining District. The Company is in negotiations with Viscarra regarding retaining his services as Mine Operations Manager. Rio Del Sol shall be the mining Operator and have the rights to eighty percent of all minerals recovered from the property. The contract requires an investment of US$500,000. The investment is scheduled to be made monthly over a minimum of six months commencing March 1, 1999 with an initial investment of $100,000, then $100,000, $100,000, $50,000, $50,000, and $100,000. However, the date for disbursement of the second and subsequent investment amounts are subject to a grace period, which allows the total investment to be made over the period of March 1, 1999 through Jan. 1, 2000. Rio Del Sol shall retain ownership of the capital equipment required for the project (initial equipment is estimated to be approximately one-half of the $500,000 required investment). Rio Del Sol has six months to explore the property after which it has contractual rights to the property for an additional 15 years. Rio Del Sol has entered into another agreement with the Cooperative to pay Cooperative $180,000 for compensation of existing mining works. $20,000 has been paid as of this date and the next payment of $26,000 is to be on March 1, 1999. The scheduled monthly payments thereafter are $46,000, $48,000, $20,000 and $20,000. The Company does not currently have the funds to fulfill the contractual agreements discussed herein, nor does the Company have a commitment for such funds at this time. Rio Del Sol based its decision to acquire the property on a report from an independent, third party geology consulting firm and, due to information contained in the report, the Company is confident it can raise the funding required in these contracts.
I am excited for the shareholders regarding the potential of this producing gold mine. I believe this acquisition is a great step forward by the Company.
Sun River Mining, Inc. shares trade on the OTC Bulletin Board under the symbol ''SUNR''.
ON BEHALF OF THE BOARD OF DIRECTORS
Randy A. McCall President & Chief Executive Officer
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Contact:
Sun River Mining Inc.
303/543-8434
Fax: 303/543-8435
E-mail: info@sunrivermining.com
Website: sunrivermining.com |
