Avrupa Minerals Options Alvalade VMS Project to MATSA Minas de Aguas Teñidas, S.A.U. ( MATSA) operates three C opper- Zinc mines in the Iberian Pyrite Belt. MATSA can earn -in to 51% of the Alvalade Project by spending 2.4 m Euros and by paying Avrupa 400,000 Euros.
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NR 06 - 2019
Avrupa Minerals Options Alvalade VMS Project to MATSA
Minas de Aguas Teñidas, S.A.U. ( MATSA) operates three C opper-
Zinc mines in the Iberian Pyrite Belt.
MATSA can earn -in to 51% of the Alvalade Project by spending
2.4 m Euros and by paying Avrupa 400,000 Euros.
MATSA can earn -in to 85% by providing a “bankable feasibility
study” on any one prospect and by making all required success
payments to original joint venture partner.
VANCOUVER, British Columbia, Oct. 1, 2019 -- Avrupa Minerals Ltd. (AVU:TSXV)
(US OTC:AVPMF) (FRANKFURT:8AM) is pleased to announce that it has entered into
a Letter of Intent with Minas de Aguas Teñidas, S.A.U. (M ATSA) to form an earn-in
exploration and ex ploitation joint venture on its Alvalade copper-zinc massive sulfide
Project in the Iberian Pyrite Belt of southern Portugal . Presently, the companies are
working together to complete the Definitive Agreement, along with the formation of a
new Joint Venture entity Newco, and the Shareholder’s Agreement for Newco.
Recent drilling at the Sesmarias copper -zinc prospect, within the Alvalade License,
demonstrated potential robustness of the massive sulfide mineralization at Sesmarias.
Presently, g eological parameters of the 10 Lens suggest a mineralized body with
dimensions at least 600 meters long x 300 meters wide x 25 meters thick. Drill intercept
grades average 0.35 – 0.5% copper and 0.4 - 1 g/t gold in just six holes along the strike
length of presently known mineralization.
The aim of the first stage of the joint venture is to delineate a deposit at Sesmarias
and/or at any one of a number of other mineralized targets located within the
boundaries of the Alvalade License , including at the past-producing Lousal Mine, at
Monte da Bela Vista, and at the past-producing Caveira Mine. In addition to these
mineral zones, Avrupa has defined a number of other drill -ready targets within the
license boundaries.
The Letter of Intent includes the following terms:
In order to acquire a 51% interest in Newco -- “The Experimental Exploitation
Phase”:
1) MATSA must provide to Avrupa 400,000 Euros (approximately C$
580,000) payment upon signing of the Definitive Agreement.
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2) MATSA must provide the required work commitment guarantee of 240,000
Euros (approximately C$ 3 48,000) u pon issuance of the new Alvalade
Experimental Exploitation License (EEL) to the new JV company (Newco),
to be set up to hold the license . This amount is refundabl e to MATSA
pending completion of the license work commitment and approval by the
Portuguese Mining Bureau (DGEG).
3) MATSA must provide 1.2 million Euros (approximately C$ 1,740,000) for
work on the Project during the first year after signing of the Definitive
Agreement.
4) MATSA must provide, at its sole discretion, an additional 1.2 million
euros for work over the second and third years of the joint venture.
5) Avrupa will be the Operator in this phase of work and will be paid 100,000
Euros (approximately C$145,000) annually as an operator’s fee.
In order to acquire a further 34% interest in Newco , for a total of 85% -- “The
Feasibility Study Phase”, MATSA must, at its option:
1) Provide a “bankable feasibility study” on one prospect within the Alvalade
license. MATSA is responsible for 100% of the costs to produce the
feasibility study, including preparation of a NI 43 -101 compliant resource
estimate;
2) Fund all necessary success-based payments to Avrupa’s previous joint
venture partner, Antofagasta Minerals, S.A., as required by the Debt
Cancellation Agreement between Avrupa and Antofagasta (see news
release of June 19, 2017).
Project Commitment and Construction Phase:
1) In conjunction with the completion of the feasibility study, MATSA would
be responsible to ensure that the application for a Mining License at
Alvalade is completed, as required by Portuguese Mining Law.
2) During the Construction Phase, Avrupa will have the choice to participate
as a 15% shareholder by providing its pro rata share of the necessary
funding, or elect to transfer its 15% interest in Newco to MATSA in
exchange for staged payments of 10 million euros (approximately C$ 14. 5
million), as follows:
a) 3,000,000 Euros upon a construction decision being made , and the
permits received from the DGEG;
b) 3,000,000 Euros upon commencement of commercial production;
and
c) 4,000,000 Euros upon the first anniversary of commercial
production.
3) The remainder of necess ary success-based payments to Antofagasta
would be borne by the Project, in accordance with the respective holdings
in Newco.
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Completion of the earn-in and joint venture arrangement remains subject to a
number of conditions, including finalization of the Definitive Agreement itself,
issuance of the Alvalade Experimental Exploitation License by the DGEG, and
receipt of any required board and/or regulatory approvals. All legal due diligence
has already been completed by MATSA.
Paul W. Kuhn, President and CEO of Avrupa Minerals, stated, “We are extremely
pleased about the forthcoming joint venture at Alvalade. MATSA already mines copper
and zinc at three locations in the Iberian Pyrite Belt of Spain, and we look forward to
working with them on our Pyrite B elt Project in Portugal. Advancing the Alvalade
Project with the strong experience of MATSA will not only allow us to work towards a
potential mining solution at Sesmarias, but will also allow us to return to our real
strength of Project Generation in Europe.”
Minas de Aguas Teñidas, S.A.U. (MATSA) is a private Spanish mining company
which owns and operates three mines in the province of Huelva (Andalusia, Spain):
Aguas Teñidas, Magdalena , and Sotiel. MATSA also holds 1,000 km 2 of exploration
licenses in the Iberian Pyrite Belt. Focused on innovation and the most advanced
technology to develop modern and sustainable mines, MATSA is a 50:50 joint venture
company of Mubadala Investment Company, a pioneering global investor, and
Trafigura, one of the world’s leading independent commodity trading and logistics
houses.
Avrupa Minerals Ltd. is a growth -oriented junior exploration and development
company directed to discovery of mineral deposits, using a hybrid prospect generator
business model. The Company holds one 100% -owned, presently self-funded, flagship
project in Portugal , the Alvalade VMS Project. Avrupa focuses its project generation
work in politically stable and prospective regions of Europe, including Portugal and
Kosovo, and is presently reviewing new opportunities elsewhere around the continent.
For additional information, contact Avrup a Minerals Ltd. at 1 -604-687-3520 or visit our
website at www.avrupaminerals.com.
On behalf of the Board,
“Paul W. Kuhn”
Paul W. Kuhn, President & Director
This news release was prepared by Company management, who take full responsibility for its content. Paul W.
Kuhn, President and CEO of Avrupa Minerals, a Licensed Professional Geologist and a Registered Member of the
Society of Mining Engineers, is a Qualified Person as defined by National Instrument 43 -101 of the Canadian
Securities Administrators. He has reviewed the technical disclosure in this release. Mr. Kuhn, the QP, h as not only
reviewed, but prepared and supervised the preparation or approval of the scientific and technical content in the news
release.
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Neither 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. Statements in this press
release, other than purely historical information, including statements relating to the Company’s future plans and
objectives or expected r esults, may include forward -looking statements. Forward -looking statements are based on
numerous assumptions and are sub ject to all of the risks and uncertainties inherent in resource exploration and
development. As a result, actual results may vary materially from those described in the forward-looking statements.