Liberty Lake, Washington, VENTURE: HMX) is pleased to announce the signing of an exploration agreement with Eldorado Gold Corporation (“Eldorado”) (TSX:ELD precious metal exploration in Argentina.
Under the terms of the agreement, Cazador S.A. (“CCSA”) will be the initial operator existing Hunt properties including twenty explorati on concessions (“Cateos”) and six discovery concessions (“Manifestations of Discovery ”) square kilometers of prospective ground in the Dese ado Massif, Santa Cruz Argentina. Hunt will also work to locate, submit, e xplore and develop new projects generated in the agreement area. Work programs, exp enditures, and new submittals, under the agreement, will be considered for approva l by a technical committee cons of two representatives from Hunt and two from Eldor ado. Upon approval, 100% of exploration expenditures will be paid by Eldorado approximately Cdn $2.5 million over the next seven months remaining i n 2012. agreement does not affect Hunt’s project (pending) in which Hunt will retain all rights as prescribed in the arrangements between Fomicruz , the Santa Cruz provincial mining company,
Summary of Agreement Terms
Under the terms of the agreement, exploration will be broken into three stages with all funding for the first two stages coming from Eldorado.
- Stage I (reconnaissance exploration)
- Provides a 30 month period to evaluate projects before gra II or being dropped from the agreement with CCSA re taining interest.
- Each new Stage I project under the agreement, will require a onetime payment from Eldorado to CCSA of Cdn
Hunt Mining Corp. Signs Exploration Agreement with Eldorado Gold Corporation Liberty Lake, Washington, May 10, 2012 – Hunt Mining Corp. (“Hunt”) (TSX VENTURE: HMX) is pleased to announce the signing of an exploration agreement with Corporation (“Eldorado”) (TSX:ELD , NYSE:EGO, ASX:EAU precious metal exploration in Argentina.
Under the terms of the agreement, Hunt’s Argentine wholly-owned subsidiary Cerro (“CCSA”) will be the initial operator conducting exploration existing Hunt properties including twenty explorati on concessions (“Cateos”) and six discovery concessions (“Manifestations of Discovery ”) aggregating a total of square kilometers of prospective ground in the Dese ado Massif, Santa Cruz Argentina. Hunt will also work to locate, submit, e xplore and develop new projects generated in the agreement area. Work programs, exp enditures, and new submittals, under the agreement, will be considered for approva l by a technical committee cons of two representatives from Hunt and two from Eldor ado. Upon approval, 100% of exploration expenditures will be paid by Eldorado which has currently budgeted $2.5 million over the next seven months remaining i n 2012.
affect Hunt’s flagship La Josefina project or the La Valenciana project (pending) in which Hunt will retain all rights as prescribed in the arrangements, the Santa Cruz provincial mining company, and CCSA.
Agreement Terms
Under the terms of the agreement, exploration will be broken into three stages with all funding for the first two stages coming from Eldorado.
Stage I (reconnaissance exploration) Provides a 30 month period to evaluate projects before gra duating to Stage II or being dropped from the agreement with CCSA re taining Each new Stage I project , generated by Hunt and accepted by Eldorado under the agreement, will require a onetime payment from Eldorado to Cdn $125,000.
Hunt Mining Corp. Signs Exploration Agreement with Eldorado Gold Hunt Mining Corp. (“Hunt”) (TSX VENTURE: HMX) is pleased to announce the signing of an exploration agreement with, NYSE:EGO, ASX:EAU ) for subsidiary Cerro conducting exploration activities on existing Hunt properties including twenty explorati on concessions (“Cateos”) and six aggregating a total of 2,013 square kilometers of prospective ground in the Dese ado Massif, Santa Cruz province Argentina. Hunt will also work to locate, submit, e xplore and develop new projects generated in the agreement area. Work programs, exp enditures, and new submittals, under the agreement, will be considered for approva l by a technical committee cons isting of two representatives from Hunt and two from Eldor ado. Upon approval, 100% of has currently budgeted $2.5 million over the next seven months remaining i n 2012. This flagship La Josefina project or the La Valenciana project (pending) in which Hunt will retain all rights as prescribed in the arrangements and CCSA.
Under the terms of the agreement, exploration will be broken into three stages with all duating to Stage II or being dropped from the agreement with CCSA re taining a 100%, generated by Hunt and accepted by Eldorado under the agreement, will require a onetime payment from Eldorado to
- Stage II (drilling, advanced exploration, preliminary economic assessment)
- Each project elected by Eldorado to advance to Stag e II will require a onetime payment from Eldorado to CCSA of Cdn $200,0 00 plus annual payments on each project of Cdn $125,000.
- Stage III (JV formation, feasibility, development toward production)
- Projects advancing to Stage III will require the formation of a joint venture entity with a 75% interest in such entity being own ed by Eldorado and 25% interest being owned by Hunt.
- Additionally, CCSA will also receive a onetime paym ent of Cdn $1,500,000 from Eldorado.
Advanced Projects covered by the Agreement
Hunt’s Bajo Pobre Gold Project has been designated as a Stage II project under the terms of the Agreement. Exploration plans for Bajo Pobre will include advanced drill target definition through structural mapping, detailed sam pling and may also include additional geophysical analysis with planned drill testing lat er in 2012. On Hunt’s El Gateado the plan is to re-evaluate past drilling results and ge ologic interpretations with the goal of developing new drill targets and taking it to Stage II status.
“We are very pleased that our team and assets in S anta Cruz Argentina has attracted a leading, low cost, precious metal producer like Eld orado Gold Corporation, to partner with us in exploring what we firmly believe is one of the most prospective precious metals regions in the world” stated Tim Hunt, Hunt Mining Corp’s Executive Chairman.
About Hunt Mining
Hunt Mining Corp. has been an active and aggressive explorer in Santa Cruz since 2006. During that time, Hunt’s wholly owned subsidiary, C erro Cazador S.A., has completed a large amount of exploration activity including appr oximately 57,000 meters of HQ core drilling, 416 line kilometers of Induced Polarizati on geophysical surveys and more than 15,000 surface channel, chip, and trench samples. H istorical results and additional information can be viewed at www.huntmining.com.
Dean Stuart
Investor Relations
T: (403) 517 2270
Viresh Varma
Director of Corp. Development
T: (647) 588 0460
Matthew J. Hughes
President and CEO
T: (509) 892-5287 E: [email protected]
Neither the TSX Venture Exchange nor its Regulation Services Provider (as t hat term is defined in the policies of the TSX Venture Excha nge) accepts responsibility for the adequacy or accuracy of this release.
FORWARD-LOOKING INFORMATION
This announcement contains forward-looking informat ion and forward-looking statements (collectively, “forward-looking informat ion”) within the meaning of applicable securities laws, relating, but not limit ed to the Hunt’s expectations, intentions, plans and beliefs. Forward-looking information can often be identified by the use of words such as 'anticipate', 'believe', 'expect', 'g oal', 'plan', 'intend', 'estimate', 'may' and 'will' or similar words suggesting future outcomes or other expectations including with respect to the benefits that may be achieved in con nection with the agreement with Eldorado, Eldorado’s budget for the remainder of 20 12, the planned activities at the Bajo Pobre Gold Project and El Gateado and the timing th ereof, and Hunt’s work to locate, submit, explore and develop how projects generated in the agreement area. Such forward looking-information is based on assumptions and cur rent expectations that involve a number of known and unknown risks and uncertainties that may cause actual results to differ materially from those expressed or implied b y the forward-looking information. Factors that could cause actual results to differ m aterially from any forward-looking information include, but are not limited to, failur e to establish estimated resources, the grade and recovery of ore which is mined varying fr om estimates, capital and operating costs varying significantly from estimates, delays in obtaining or failures to obtain required governmental, environmental or other proje ct approvals, inflation, changes in exchange rates, fluctuations in commodity prices, d elays in the development of projects, uncertainties relating to the interpretation of the geology, continuity, grade and size estimates of mineral resources and unanticipated op erational or technical difficulties and other risks and uncertainties set out in the Hunt’s annual and quarterly management discussion and analysis which are available at www. sedar.com. Such forward-looking information is based on a number of assumptions, in cluding but not limited to, the availability of financing, no significant decline i n existing general business and economic conditions, the level and volatility of the price o f gold, the accuracy of Hunt’s resource estimates and of the geological, metallurgical, pri ce and other assumptions on which the estimates are based. Should one or more risks and u ncertainties materialize or should any assumptions prove incorrect, then actual results co uld vary materially from those expressed or implied in the forward-looking informa tion and accordingly, readers are cautioned not to place undue reliance on this forwa rd-looking information. Readers are further cautioned that the forgoing lists of risks, uncertainties, assumptions and other factors are not exhaustive. Hunt does not assume th e obligation to revise or update this forward-looking information after the date of this announcement or to revise such information to reflect the occurrence of future una nticipated events, except as may be required under applicable securities laws.