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.

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
Increasing IoT connectivity is forcing enterprises to find elegant solutions to organize and visualize all incoming data from these connected devices with re-configurable dashboard widgets to effectively allow rapid decision-making for everything from immediate actions in tactical situations to strategic analysis and reporting. In his session at 18th Cloud Expo, Shikhir Singh, Senior Developer Relations Manager at Sencha, will discuss how to create HTML5 dashboards that interact with IoT devic...
The IoTs will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm and share the must-have mindsets for removing complexity from the development proc...
SYS-CON Events announced today that Ericsson has been named “Gold Sponsor” of SYS-CON's @ThingsExpo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. Ericsson is a world leader in the rapidly changing environment of communications technology – providing equipment, software and services to enable transformation through mobility. Some 40 percent of global mobile traffic runs through networks we have supplied. More than 1 billion subscribers around the world re...
SYS-CON Events announced today that Peak 10, Inc., a national IT infrastructure and cloud services provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Peak 10 provides reliable, tailored data center and network services, cloud and managed services. Its solutions are designed to scale and adapt to customers’ changing business needs, enabling them to lower costs, improve performance and focus inter...
The increasing popularity of the Internet of Things necessitates that our physical and cognitive relationship with wearable technology will change rapidly in the near future. This advent means logging has become a thing of the past. Before, it was on us to track our own data, but now that data is automatically available. What does this mean for mHealth and the "connected" body? In her session at @ThingsExpo, Lisa Calkins, CEO and co-founder of Amadeus Consulting, will discuss the impact of wea...
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, will provide tips on how to be successful in large scale machine lear...
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
SYS-CON Events announced today that Enzu, a leading provider of cloud hosting solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive advantage. By offering a suite of proven hosting and management services, Enzu wants companies to foc...
See storage differently! Storage performance problems have only gotten worse and harder to solve as applications have become largely virtualized and moved to a cloud-based infrastructure. Storage performance in a virtualized environment is not just about IOPS, it is about how well that potential performance is guaranteed to individual VMs for these apps as the number of VMs keep going up real time. In his session at 18th Cloud Expo, Dhiraj Sehgal, in product and marketing at Tintri, will discu...
There is an ever-growing explosion of new devices that are connected to the Internet using “cloud” solutions. This rapid growth is creating a massive new demand for efficient access to data. And it’s not just about connecting to that data anymore. This new demand is bringing new issues and challenges and it is important for companies to scale for the coming growth. And with that scaling comes the need for greater security, gathering and data analysis, storage, connectivity and, of course, the...
In his session at @ThingsExpo, Chris Klein, CEO and Co-founder of Rachio, will discuss next generation communities that are using IoT to create more sustainable, intelligent communities. One example is Sterling Ranch, a 10,000 home development that – with the help of Siemens – will integrate IoT technology into the community to provide residents with energy and water savings as well as intelligent security. Everything from stop lights to sprinkler systems to building infrastructures will run ef...
Artificial Intelligence has the potential to massively disrupt IoT. In his session at 18th Cloud Expo, AJ Abdallat, CEO of Beyond AI, will discuss what the five main drivers are in Artificial Intelligence that could shape the future of the Internet of Things. AJ Abdallat is CEO of Beyond AI. He has over 20 years of management experience in the fields of artificial intelligence, sensors, instruments, devices and software for telecommunications, life sciences, environmental monitoring, process...
Internap Corporation has expanded its OpenStack-based bare-metal Infrastructure-as-a-Service offering, AgileSERVER 2.0, to its data centers in Amsterdam, Dallas and Santa Clara, Calif. Launched in 2015 out of Internap’s New York Metro data center in Secaucus, N.J., AgileSERVER 2.0 is now available in four locations globally, enabling enterprises and devops teams running mission-critical applications and big data workloads to build scale-out infrastructure environments that are higher performing ...
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
Much of the value of DevOps comes from a (renewed) focus on measurement, sharing, and continuous feedback loops. In increasingly complex DevOps workflows and environments, and especially in larger, regulated, or more crystallized organizations, these core concepts become even more critical. In his session at @DevOpsSummit at 18th Cloud Expo, Andi Mann, Chief Technology Advocate at Splunk, will show how, by focusing on 'metrics that matter,' you can provide objective, transparent, and meaningfu...