TSX Venture Symbol: COR
VANCOUVER, June 29, 2016 /CNW/ - Camino Minerals Corporation
("Camino" or the "Company") (COR: TSX-V), is pleased to announce
the signing of a Letter of Intent (LOI) with Minas Andinas SA (the
"Vendor"), pursuant to which it can acquire through a wholly owned
subsidiary, Camino Resources SAC, a 100% interest in the Los
Chapitos project. The property consists of 7 claims, totaling 3,200
hectares (7,900 acres), and is located 15 kilometers north of the
coastal city of Chala, Department of Arequipa.
At Los Chapitos, all of the known mineralization
is associated with structurally controlled breccia zones with
moderate to intense potassium alteration. Small scale mining
was active on the western side of the property in the 1940's and
50's which produced high grade copper oxide mineralization from the
El Atajos Zone. This zone ranges in width from 8 meters to 20
meters and grade from 0.8% to +2% copper oxides over a strike
length of 400 meters. Approximately six kilometers to the
east are three additional zones which outcrop along a one kilometer
trend and were previously sampled by the Vendor. The Adriana
Zone is exposed over an area measuring 75 meters by 150 meters,
with historical sampling ranging from 0.3% to 2.6% copper as
oxides. The Katty Zone measures 50 meters by 125 meters, and
has historical sampling ranging from 0.3% to 6.6% copper. The
Carlota Zone, which lies between the Adriana and Katty Zones,
measures 100 meters by 150 meters, and contains lower grade
mineralization grading up to 1% copper.
Los Chapitos is covered by rolling hills with
elevations between 500 masl and 1250 masl. It is crossed by
numerous gravel roads and trails which connect back to the Pan
American Highway near the cities of Challa and Tanaka. Regionally,
the project is located along the major Treinta Libras structural
lineament, which hosts the Mina Justa IOCG deposit, and Marcona
Iron Oxide deposit 100 kilometers to the northwest.
Mina Justa is hosted by potassium
altered, structurally controlled breccias and is reported to
contain a resource of 374 million tonnes averaging 0.71% copper and
9.0 gpt silver.
Under the terms of the LOI, Camino has the right
to earn 100% interest in the Project, subject to a 1.5% Net Smelter
Royalty ("NSR), by making staged option payments and issuing common
shares of Camino as follows:
Date for Option Payment |
Amount USD |
Shares |
On execution of the option agreement (the
"Effective Date") |
$50,000 |
50,000 |
12 months after Effective Date |
$75,000 |
75,000 |
24 months after Effective Date |
$100,000 |
100,000 |
36 months after Effective Date |
$125,000 |
125,000 |
48 months after Effective Date |
$150,000 |
150,000 |
Total |
$500,000 |
500,000 |
The 1.5% NSR is payable up to a maximum of
US$10 million. Camino retains
the first right of offer to purchase the NSR. Advance royalty
payments of US$500,000 will be
payable for each 500 million pounds of copper equivalent ("CuEQ")
incremental increase in Measured and Indicated resources. For
the purposes of this agreement, CuEQ will be based on the contained
pounds of copper, contained ounces of gold and silver, and the LME
closing spot price on the date of release of each resource.
To facilitate the option and advancement of the
Los Chapitos project, and continue to fund ongoing corporate
development activities, Mr Ken
McNaughton, President and CEO, has entered into a loan
agreement with Camino. Under the terms of the agreement, Mr
McNaughton has provided CDN$500,000
as a demand loan to the Company, with an annual interest rate of
3%.
The completion of the option remains subject to
receipt of all necessary regulatory approvals, including the
approval of the TSX Venture Exchange.
Kenneth C.
McNaughton , M.A.Sc., P.Eng., is the Qualified Person (QP)
responsible for the Los Chapitos project.
About Camino Minerals Corporation
Camino is a discovery-oriented mineral
exploration company. The Company is focused on the acquisition and
development of high grade copper and precious metal projects. For
more information, please refer to Camino's website at
www.caminominerals.com
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking
Statements and Information
This News Release may contain "forward-looking
information" and "forward looking statements" within the meaning of
applicable Canadian and United
States securities legislation. Statements contained
herein that are not based on historical or current fact, including
without limitation statements containing the words "anticipates,"
"believes," "may," "continues," "estimates," "expects," and "will"
and words of similar import, constitute "forward-looking
statements" within the meaning of the U.S. Private Securities
Litigation Reform Act of 1995. Forward-looking information
may include, but is not limited to, information with respect to our
planned exploration activities, the adequacy of our financial
resources, the estimation of mineral reserves and resources,
results of future exploration and drilling. Wherever
possible, words such as "plans", "expects", "projects", "assumes",
"budget", "strategy", "scheduled", "estimates", "forecasts",
"anticipates", "believes", "intends", "targets" and similar
expressions or statements that certain actions, events or results
"may", "could", "would", "might" or "will" be taken, occur or be
achieved, or the negative forms of any of these terms and similar
expressions, have been used to identify forward-looking statements
and information.
Such forward-looking statements and information
are subject to risks and uncertainties which could cause actual
results to differ materially from estimated results. Such
risks and uncertainties include, but are not limited to, our
ability to raise sufficient capital to fund exploration, changes in
economic conditions or financial markets, changes in prices for the
company's mineral products or increases in input costs, litigation,
legislative, environmental and other judicial, regulatory,
political and competitive developments in the countries in which we
hold mineral properties, technological and operational difficulties
or inability to obtain permits encountered in connection with
exploration and development activities, labour relations matters,
and changing foreign exchange rates, all of which are described
more fully in our filings on SEDAR. We do not assume any
obligation to update forward-looking statements and information,
whether as a result of new information, future events or otherwise,
other than as required by applicable law. For the reasons set forth
above, prospective investors should not place undue reliance on
forward-looking statements and information.
SOURCE Camino Minerals Corporation