Camino Minerals Corporation (“Camino” or the “Company”) (COR: TSX-V), is pleased to announce the signing of option agreements with La Cuesta International Inc (the “Vendor”), pursuant to which the Company can acquire a 100% interest in the Saddleback Project (“Saddleback”) located in the states of Arizona and New Mexico, and the Lost Cabin Project, (“Lost Cabin” and collectively the “Properties”) located in the state or Oregon. Messrs. Perry Durning and Bud Hillemeyer cofounded La Cuesta International Inc (“La Cuesta) in 1993, and have numerous discoveries to their credit, including the Camino Rojo project for Canplats in 2007.
Saddleback lies in the northwestern sector of the historic Steeple Rock mining district, New Mexico and Arizona, south west of the Morenci open-pit copper mine operated by Freeport McMoRan. The area of interest covers a very large zone of intense low-pH hydrothermal alteration situated in a geological setting considered to be prospective for epithermal precious metal mineralization of economic importance. The exploration target at Saddleback will be the discovery of high-grade, epithermal Au-Ag ± base metals (polymetallic) vein deposits at depth along multiple highly-altered, and locally-gold-silver anomalous fault structures.
Lost Cabin is located north east of Lakeview, Oregon, with excellent access. On surface, steeply dipping, fault-hosted vein structures cut areas of widespread clay and propylitic alteration in volcanic rocks. The large alteration zone is on the SE margin of a mid-Tertiary stratovolcano and associated domes. Favorable structures show linear zones of clay±sericite±FeOx±quartz alteration along with highly anomalous gold and silver, arsenic values. The geology at Lost Cabin has been interpreted to be the high-level expression of a low-to-intermediate sulfidation epithermal vein system. The exploration target at Lost Cabin will be the discovery of high-grade gold, silver (+base metals) mineralization at depth.
The terms of the individual property option agreements are the same for both Saddleback and Lost Cabins. Under the terms of the agreements, Camino has the right to earn 100% interest in the Properties, subject to a 1.5% Net Smelter Royalty (“NSR), by issuing 200,000 common shares of Camino, and by making staged advanced NSR payments as follows:
|Date for Option Payment||Amount USD|
|On execution of the option agreement (the “Effective Date”)||$1,500|
|12 months after Effective Date||$5,000|
|18 months after Effective Date||$5,000|
|24 months after Effective Date||$10,000|
|30 months after Effective Date||$10,000|
|36 months after Effective Date||$15,000|
|40 months after Effective Date||$20,000|
|48 months after Effective Date and every 6 months thereafter||$20,000|
When the aggregate NSR payments, including advance and productions payments, exceeds US$5,000,000, the payable NRS will reduce from 1.5% to 0.75%. For each of the Properties, Camino has agreed to issue 200,000 common shares of Camino, within 4 months of the Effective Date of the agreements. The issued shares will be subject to a 4 month hold period beginning on the date of issue.
The completion of the option remains subject to receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange.
Camino is also pleased to announce the appointment of Ms. Alicia Milne as corporate secretary for the Company.
Kenneth C. McNaughton , M.A.Sc., P.Eng., is the Qualified Person (QP) responsible for the Saddleback and Lost Cabins exploration programs.
About Camino Minerals Corporation
Camino is a discovery-oriented mineral exploration company formed in connection with Goldcorp’s C$300-million acquisition of Canplats Resources Corp. The Company is led by Canplats’ former management and is focused on the acquisition and development of high grade copper and gold projects. For more information, please refer to Camino’s website at www.caminominerals.com
For further information, contact:
Corporate Information and Investor Inquiries:
R.E. Gordon Davis
Chairman and C.E.O.
Direct: (604) 629-8292
Direct: (604) 566-8780
To receive Camino’s news releases, email email@example.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
Statements contained in this news release that are not historical fact are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995 and forward-looking information under the provisions of Canadian securities laws (collectively, “forward-looking statements”). Such forward-looking statements 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, the company’s 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 Mexico, 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 Camino’s filings on SEDAR. The company undertakes no obligation to publicly update or otherwise revise any forward-looking statements, whether as a result of new information, future events or other factors, except as required by law. Readers are cautioned not to place undue reliance on forward-looking statements.