Welcome!

News Feed Item

Alturas Signs Mining Agreement on Its Copper-Zinc-Gold Callejones Project in Northern Peru and Enters Into an Agreement for a US$100,000 Convertible Loan

TORONTO, ONTARIO -- (Marketwired) -- 05/26/14 -- Alturas Minerals Corp. (the "Company") (TSX VENTURE:ALT)(LMA:ALT) is pleased to announce that its 100% Peruvian subsidiary Alturas Minerals S.A. ("Alturas") has entered into an agreement (the "Option Agreement") on its 100% owned 2,000 hectare Callejones mining concessions (the "Concessions") located in northern Peru and into an agreement for a US$100,000 convertible loan ("Loan Contract") with the Peruvian company Andes Generating Corporation S.A.C. ("Ancorp").

Miguel Cardozo, President & CEO of Alturas commented that "The Callejones deal is a positive development for Alturas and together with the convertible loan contract secures the disposition of sufficient cash to maintain the validity of its mining licenses in Peru and Chile. At the same time, creates a strategic relationship with a prestigious investment company in Peru that has expressed its interest in supporting the company in its corporative and financial development. Alturas remains very optimistic with respect to the mineral potential of its projects and is evaluating alternative plans for exploration.

Alturas is currently having conversations with various mining companies and private investors that are strongly interested in a joint venture partnership to develop these and other projects from our high-quality property portfolio in Peru and Chile."

Option Agreement

Under the 5-year Option Agreement, Ancorp can earn a 100% interest in the project by incurring a minimum of US$ 200,000 on exploration expenditures in the first 3 years and by additionally making staged yearly cash payments to Alturas totaling up to US$ 0.5 million. A first payment of US$50,000 was received on May 16th, 2014 on signing of the Public Deed of the option agreement. The Option Agreement also stipulates that once Ancorp exercises the option to acquire the Property, Alturas becomes entitled to a royalty payment on all minerals extracted from the Property, equivalent to 0.3% of the net smelting return ("NSR"). Furthermore, if Ancorp decide to transfer the property to a third party, Alturas will be entitled to 30% of all the net benefits obtained by Ancorp from that transaction.

Loan Contract

On May 16th, 2014, simultaneously with the execution of the Option Agreement, a loan agreement ("Loan Contract") was also signed by the parties whereby Alturas received a US$100,000 loan, payable any time before 12 months. The loan is convertible into Alturas common shares at the option of Ancorp and carries an annual interest rate of 15%. The conversion price for the principal amount of the loan has been set at $0.02 per share. In addition, Ancorp has been granted 2,000,000 warrants exercisable at $0.02 per share for a period of one year. The conversion price and the exercise price on the warrants are being granted based on a waiver from the pricing rules of the TSX Venture Exchange. The loan cannot be converted or the warrants exercised until the Company has completed a consolidation unless the conversion price and warrant exercise price are increased to $0.05. At its annual meeting on May 14, 2014, shareholders overwhelmingly granted approval to consolidate the common shares. Alturas is in the process of implementing the consolidation subject to finalizing the consolidation ratio which will be between 1 post consolidated share for each 10 pre-consolidation shares and 1 post-consolidation share for each 3 pre-consolidation shares.

In addition, the Loan Contract provides that if Alturas is unable to repay the loan and Ancorp elects not to convert the loan, Ancorp can reduce its option payments above by US$2 for every $US1 not repaid. Ancorp has no other recourse under the Loan Contract other than to convert or reduce its obligations under the Option Agreement.

This transaction remains subject to regulatory and TSX-V approvals.

About the Callejones Project

The Callejones Property consist of two mining concessions totaling 2,000 hectares, located 400 kilometers NNW of Lima in the Department of La Libertad, northern Peru, and lying in the coastal hills at around 500 meters altitude above sea level. The Callejones Project is located within the coastal volcanogenic massive sulphide (VMS) belt of northern Peru, which can be traced for over 1,500 kilometers in a NNW-SSE direction. The belt is characterized by a marine volcano-sedimentary sequence of mid-Cretaceous age, hosting a number of clustered, and in some cases very large mineral deposits, like the Tambogrande project.

Prior to Alturas, the Australian company Pasminco (formerly Savage) completed extensive exploration work there, completing geological mapping, stream sediment sampling, trench sampling and diamond drilling in 1997-98. During 2001, the Canadian junior company Bear Creek Mining later carried out a limited RC drilling program on the property, targeted on the earlier work completed by Pasminco. Total historical expenditure is estimated to be approximately US$1.5.

Pasminco collected 3,384 rock geochemical samples within Alturas' present tenure and the results confirmed significantly elevated values of gold, silver, copper, zinc, lead and molybdenum, as well as iron. In particular, gold and silver are elevated to potentially economic values in a large number of samples (reporting values of several g/t, and tens of g/t, respectively). Gold and silver values are enriched over the entire project area, whereas copper, zinc, lead and molybdenum tend to be more concentrated in the eastern sector.

The property has received a total of 3,552.86 meters of historical drilling in three campaigns, targeting a narrow gold-silver "horizon" within the mixed volcano-sedimentary package immediately beneath a hanging wall andesite lava sequence, using the detachment fault model. The drilling showed that gold and silver were the two main economic elements present in the near surface and significantly anomalous values were intercepted over intervals of meters to tens of meters. Base metals such as copper, lead and zinc were intercepted in significantly anomalous amounts in a few drill holes (0.1-1.0%), over intervals of meters.

However, Alturas considers that a gold-rich VMS model is instead applicable, by analogy with other gold-rich VMS deposits in the belt such as Tambogrande some 480 kilometres to the NNW, it is conceivable that lenses of massive sulphide mineralization in the order of hundreds of meters in size, could be concealed beneath the gold-silver rich horizon, which may represent a regional "exhalite" horizon. No systematic exploration for blind VMS targets has yet taken place in the district.

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, who has reviewed the technical information reported in this News Release.

About Ancorp

Ancorp is a Peruvian private group with diversified investment interests developed in more than 30 years of business history from its partners. Their investments focus has been in the identification, development and promotion of hydropower projects in Peru, with a portfolio successfully developed to date, with an estimated construction investment of over USD$ 8 billion. In addition, Ancorp' main partner founded and directed a renown Peruvian engineering company in 1978, which primary focus has been the identification, design and development of hydroelectric and thermal plants, transmission and distribution lines in Latin America and was merged in 2012 with Dessau International. Other past and current investments includes participation in real estate investment, non-metallic mining, medical services, transport, electro-mechanic industry among others.

About Alturas Minerals

Alturas is a Canadian corporation, and is the indirect parent of the Peruvian company, Alturas Minerals S.A. ("Alturas Peru") and of the Chilean company, Alturas Chile Limitada ("Alturas Chile"). Alturas Peru has been exploring various mineral projects in Peru since January 2004. Alturas Chile initiated exploration activities during the second quarter of fiscal 2010. Alturas' exploration strategy is focused on the discovery of large copper-gold porphyry/skarn deposits and epithermal gold mineralized deposits.

Besides Callejones, Alturas has three drill-ready mineral exploration projects located in Peru, including the Utupara, Sombrero and Huajoto projects. Alturas also entered into a transfer agreement on its Pampa Colorada property in northern Peru with Origen Group S.A.C. but maintains royalty rights and a claw back clause on 60-100% of the mining rights under certain conditions (see press release dated January 5th, 2012). Alturas is also advancing its two optioned gold-copper projects Marilin and Quispe in the Maricunga belt of northern Chile.

For further information, please visit the Company's website at www.alturasminerals.com.

Alturas Minerals Corp.                                                      
1 Toronto Street, Suite 201, Toronto, ON, Canada, M5C 2V6, and              
Av. Del Pinar 180, Suite 804, Chacarilla del Estanque, Lima 33, Peru        

Should you wish to receive Company news via email, please email [email protected] and specify "Alturas News" in the subject line.

The TSX Venture Exchange and the Bolsa de Valores de Lima do 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.

Contacts:
Alturas Minerals Corp.
+ 51-1- 372-3739 (Lima, Peru)
+ 1-416-363-4900 (Toronto, Canada)
[email protected]
www.alturasminerals.com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
The technologies behind big data and cloud computing are converging quickly, offering businesses new capabilities for fast, easy, wide-ranging access to data. However, to capitalize on the cost-efficiencies and time-to-value opportunities of analytics in the cloud, big data and cloud technologies must be integrated and managed properly. Pythian's Director of Big Data and Data Science, Danil Zburivsky will explore: The main technology components and best practices being deployed to take advantage...
Andi Mann, Chief Technology Advocate at Splunk, is an accomplished digital business executive with extensive global expertise as a strategist, technologist, innovator, marketer, and communicator. For over 30 years across five continents, he has built success with Fortune 500 corporations, vendors, governments, and as a leading research analyst and consultant.
Cloud-enabled transformation has evolved from cost saving measure to business innovation strategy -- one that combines the cloud with cognitive capabilities to drive market disruption. Learn how you can achieve the insight and agility you need to gain a competitive advantage. Industry-acclaimed CTO and cloud expert, Shankar Kalyana presents. Only the most exceptional IBMers are appointed with the rare distinction of IBM Fellow, the highest technical honor in the company. Shankar has also receive...
Most DevOps journeys involve several phases of maturity. Research shows that the inflection point where organizations begin to see maximum value is when they implement tight integration deploying their code to their infrastructure. Success at this level is the last barrier to at-will deployment. Storage, for instance, is more capable than where we read and write data. In his session at @DevOpsSummit at 20th Cloud Expo, Josh Atwell, a Developer Advocate for NetApp, will discuss the role and value...
DXWorldEXPO LLC announced today that ICOHOLDER named "Media Sponsor" of Miami Blockchain Event by FinTechEXPO. ICOHOLDER gives detailed information and help the community to invest in the trusty projects. Miami Blockchain Event by FinTechEXPO has opened its Call for Papers. The two-day event will present 20 top Blockchain experts. All speaking inquiries which covers the following information can be submitted by email to [email protected] Miami Blockchain Event by FinTechEXPOalso offers sp...
Today, we have more data to manage than ever. We also have better algorithms that help us access our data faster. Cloud is the driving force behind many of the data warehouse advancements we have enjoyed in recent years. But what are the best practices for storing data in the cloud for machine learning and data science applications?
DXWordEXPO New York 2018, colocated with CloudEXPO New York 2018 will be held November 11-13, 2018, in New York City and will bring together Cloud Computing, FinTech and Blockchain, Digital Transformation, Big Data, Internet of Things, DevOps, AI, Machine Learning and WebRTC to one location.
@DevOpsSummit at Cloud Expo, taking place November 12-13 in New York City, NY, is co-located with 22nd international CloudEXPO | first international DXWorldEXPO and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time t...
Bill Schmarzo, author of "Big Data: Understanding How Data Powers Big Business" and "Big Data MBA: Driving Business Strategies with Data Science" is responsible for guiding the technology strategy within Hitachi Vantara for IoT and Analytics. Bill brings a balanced business-technology approach that focuses on business outcomes to drive data, analytics and technology decisions that underpin an organization's digital transformation strategy.
DevOpsSummit New York 2018, colocated with CloudEXPO | DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City. Digital Transformation (DX) is a major focus with the introduction of DXWorldEXPO within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term.
Headquartered in Plainsboro, NJ, Synametrics Technologies has provided IT professionals and computer systems developers since 1997. Based on the success of their initial product offerings (WinSQL and DeltaCopy), the company continues to create and hone innovative products that help its customers get more from their computer applications, databases and infrastructure. To date, over one million users around the world have chosen Synametrics solutions to help power their accelerated business or per...
DXWorldEXPO LLC announced today that Kevin Jackson joined the faculty of CloudEXPO's "10-Year Anniversary Event" which will take place on November 11-13, 2018 in New York City. Kevin L. Jackson is a globally recognized cloud computing expert and Founder/Author of the award winning "Cloud Musings" blog. Mr. Jackson has also been recognized as a "Top 100 Cybersecurity Influencer and Brand" by Onalytica (2015), a Huffington Post "Top 100 Cloud Computing Experts on Twitter" (2013) and a "Top 50 C...
When talking IoT we often focus on the devices, the sensors, the hardware itself. The new smart appliances, the new smart or self-driving cars (which are amalgamations of many ‘things'). When we are looking at the world of IoT, we should take a step back, look at the big picture. What value are these devices providing. IoT is not about the devices, its about the data consumed and generated. The devices are tools, mechanisms, conduits. This paper discusses the considerations when dealing with the...
Charles Araujo is an industry analyst, internationally recognized authority on the Digital Enterprise and author of The Quantum Age of IT: Why Everything You Know About IT is About to Change. As Principal Analyst with Intellyx, he writes, speaks and advises organizations on how to navigate through this time of disruption. He is also the founder of The Institute for Digital Transformation and a sought after keynote speaker. He has been a regular contributor to both InformationWeek and CIO Insight...
They say multi-cloud is coming, but organizations are leveraging multiple clouds already. According to a study by 451 Research, only 21% of organizations were using a single cloud. If you've found yourself unprepared for the barrage of cloud services introduced in your organization, you will need to change your approach to engaging with the business and engaging with vendors. Look at technologies that are on the way and work with the internal players involved to have a plan in place when the ine...