|August 13, 2009|
Alturas signs agreement with Buenaventura on its Ccaccapaqui gold-silver project in Peru
Toronto, August 13, 2009 – Alturas Minerals Corp. (the “Company”) (TSX-V, BVL: ALT) is pleased to report that it has entered into a letter of intent agreement with Compañia de Minas Buenaventura S.A.A. (“Buenaventura”) (BVL:BUE.LM, NYSE:BVN), a Peruvian company listed on the Lima and New York Stock Exchanges, regarding its 100% owned Ccaccapaqui 1 property in southern Peru.
Under the terms of the letter of intent (LOI) agreement, Buenaventura can earn an initial 51% interest in the project by spending a total of US$ 4.0 million on exploration and maintenance, and by making staged yearly cash payments to Alturas totaling US$ 1.65 million, within 4 years of the date of signature of the framework agreement to be executed. Buenaventura would be obligated to spend a minimum of US$800,000 on exploration and maintenance within the first year.
Upon Buenaventura earning the initial 51% interest, it could elect to earn in an extra 19% in the project by funding and delivering a Feasibility Study within 2 years to bring its total interest to 70%. If Buenaventura elects not to complete a feasibility study, then Alturas would have the option to complete a feasibility study and earn back 21%, to bring its share to 70%.
On completion of the feasibility study or in case neither party decides to fund a feasibility study, the parties would fund pro-rata on a 70:30 or 51:49 basis, as it may be the case, the development of the project and would be subject to normal straight line dilution clauses. Should either party dilute to below 10%, then it would exit with a 1.5% NSR.
Buenaventura would be the operator and full pre-emptive rights would apply in case a party wishes to assign its interest in the joint venture or its rights to the NSR royalty to an unrelated party.
Paul Pearson, President and CEO of Alturas commented, “We are delighted to be working with Buenaventura, a major international mining house and one of Peru’s principal gold and silver producers, in advancing exploration at our Ccaccapaqui gold-silver project. This agreement forms part of Alturas’s strategy of sharing exploration expense and risk at some of our key gold and copper-gold projects, whilst focusing our own resources in our flagship copper-gold property, Chapi Chapi- Utupara”.
The transaction remains subject to Board and regulatory approvals of both parties, due diligence and formal legal documentation, with closing scheduled for September 13.
About the Ccaccapaqui gold-silver project
The 600 hectare Ccaccapaqui project is located 460 kilometers southeast of Lima in the department of Ayacucho, within the same volcanic belt that hosts major high- and low-sulfidation epithermal gold-silver deposits such as Orcapampa, Arcata, Ares, Antapite and Poracota. Buenaventura-Newmont´s Breapampa high sulfidation gold deposit lies 24 kilometers to the southeast of the Ccaccapaqui project. Sampling by Alturas at Ccaccapaqui has previously returned very encouraging gold and silver results within the upper levels of an interpreted high-sulfidation epithermal system, as reported in a company press release dated June 18, 2008. Gold- and silver-mineralized silicic alteration defines a coherent anomaly of +1.50 x 0.50 kilometers in dimension and the system is still open at both ends. Access to the project is currently restricted as there is an illegal governmental restraint given by the Provincial Municipality of Parinacochas–Coracora. This restraint is regional in extent and is in no way specific to the company or the property. Alturus is considering what actions can be taken to resolve this difficulty and will keep investors apprised of any developments.
For maps and an extended summary of exploration results, refer to the Company’s website www.alturasminerals.com/our-projects.html#project1
About Compañia de Minas Buenaventura
Buenaventura is Peru's largest publicly-traded precious metals company and currently operates seven mines in Peru (Orcopampa, Uchucchacua, Antapite, Julcani, Recuperada, Shila-Paula and Ishihuinca), has controlling interests in one mining company (El Brocal). In addition, Buenaventura has minority interests in several other mining companies, including a significant ownership interest in Yanacocha (43.65%), via a partnership with Newmont Mining, one of the most important gold mining companies in the world, and Cerro Verde (19.26%), an important Peruvian copper producer located in the southern Peru.
The Company has been listed on the Lima Stock Exchange (BUE.LM) since 1971, and on The New York Stock Exchange (NYSE: BVN) since 1996.
About Alturas Minerals Corp.
Alturas is a Canadian corporation, and is the parent of Alturas Minerals S.A. (“Alturas Peru”). Alturas Peru has been actively exploring various mineral projects in Peru since January 2004. Alturas’ properties include four drill-ready mineral exploration projects located in central and southern Peru, which includes the Chapi Chapi-Utupara Copper-Gold Project, the Sombrero Copper-Gold Project, the Ccaccapaqui Gold-Silver Project and the Huajoto Gold-Silver-Zinc Project. In addition, Alturas Peru has interests in seven other exploration projects in Peru. Alturas’ exploration strategy is focused on the discovery of large epithermal gold mineralized deposits and copper-gold porphyry/skarn deposits. For further information, please visit the Company's website at www.alturasminerals.com
As required by the National Instrument 43-101, Alturas's designated Qualified Person for the supervision of exploration of the projects is Dr. Paul Pearson, F. AUSIMM, President and CEO of the Company, who has verified the technical information reported in this News Release.
For further information please contact Alturas at:
Phone: + 51-1- 475-1700 (Peru)
Alturas Minerals Corp.
Suite 3100, Scotia Plaza, 40 King St. W., Toronto, ON Canada M5H 3Y2
Manuel de Falla 297, Floor 5th, San Borja, Lima 41, Peru
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Cautionary Language and Forward Looking Statements
This press release may contain “forward-looking statements”, which are subject to various risks and uncertainties that could cause actual results and future events to differ materially from those expressed or implied by such statements. Investors are cautioned that such statements are not guarantees of future performance and results. Risks and uncertainties about the Company’s business are more fully discussed in the Company’s disclosure documents filed from time to time with the Canadian securities authorities