VANCOUVER, British Columbia, June 3, 2011 (GLOBE NEWSWIRE) -- Nazca Mining Co. Ltd. (the "Company", "NZA") is pleased to announce the signing of a letter of intent pursuant to which it has acquired an option to enter into a joint venture agreement entitling the Company to a 30% interest in the Ursula Gold Mine in Ica Peru with a wholly owned private company ("Seller").
The Company shall pay US$50,000 to the Seller upon signing the joint venture agreement. Subject to regulatory, board of director, and shareholder approval, NZA may exercise the option to pay a further US$850,000 over a 12 month period, for a total of US$900,000 in cash. The Company will also issue to the Seller 500,000 warrants at an exercise price of 2.50€ per warrant for a period of twenty-four months from the date of issue. Each warrant once exercised shall be converted into one share of the Company. These warrants also entitle the Seller to purchase an additional 500,000 common shares at a discounted price. Lastly, under the joint venture agreement, NZA will also refund all expenses incurred by the seller from January 1st 2011 until the finalization of this transaction, which will not exceed US$300,000.
Currently, the Seller is operating a 2011 budget of US$100,000 with the objective of conducting a comprehensive valuation of mine reserves/resources, metallurgy, completion of a NI 43-101 technical report, financial analysis and updated mine plan. These studies will form the basis for a planned expansion of mining operations and exploration program. Seller's management plans to complete its due diligence by June 1, 2011 and establish the appropriate strategy to continue the development of the mine.
The Ursula Mine shows the following characteristics:
- Turn key mining operation
- Currently in commercial production
- Significant exploration upside
- Complete valuation of the mine, mill, and resource in progress
The acquisition of the Ursula Gold Mine allows NZA to see immediate cash flow and near term scale up opportunity. In addition, NZA is in late phase development of the Angostura Gold Project and it is scheduled to be concluded by mid August - Revenue from this project shall be recorded once the conditions on the joint venture is completed by the Company. Our management's objective is to continue to aggressively acquire advanced stage gold projects in Peru.
About Nazca Mining Ltd.
Nazca Mining is a private company in the submission process of listing on the Frankfurt Stock Exchange. Audited valuations have been provided to our listing partner verifying that the Company exceeds the minimum capital requirements. We are focused on gold exploration in South America and are currently advancing our Angostura Gold Project in Peru. Nazca Mining also has a subsidiary corporation, Nazca Operations Ltd, located in Seattle, Washington, USA.
Disclaimer
This news release may contain certain "forward-looking statements". All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Any forward-looking statements are not guarantees of the Company's future performance and are subject to risks and uncertainties that could cause actual results, developments, and business decisions to differ materially from those contemplated by any forward-looking statements. Except as required by law, the Company undertakes no obligation to update any forward-looking statements.
The Frankfurt Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release