Mirasol and OceanaGold Sign Definitive Exploration Option Agreement for the La Curva Gold Project, Santa Cruz, Argentina
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NEWS RELEASE
Mirasol and OceanaGold Sign Definitive Exploration Option Agreement
for the La Curva Gold Project, Santa Cruz, Argentina
VANCOUVER, BC, May 25, 2017 – Mirasol Resources Ltd. (TSX-V: MRZ, Frankfurt: M8R) (the
“Company” or “Mirasol”) is pleased to announce that on May 18 2017, the Company and one of its
100% owned Argentine subsidiaries , signed a definitive exploration and option agreement (the
“Agreement”) with OceanaGold Corporation (“OGC”) to explore the Company’s 100% owned, La
Curva gold project, located in Santa Cruz Province, Argentina (the “Project”).
OGC is a mid -tier, high-margin international gold producer with operations in New Zealand, the
Philippines and has recently commissioned the multimillion ounce Halie gold mine in the United
States. The La Curva Agreement grants OGC the option to acquire, in five stages, up to a 75%
interest in the Project and requires OGC to make a first year commitment of US $1.25 mil lion in
exploration expenditures, complete 3,000 metres of drilling, and make a US$100,000 option payment
to Mirasol on signing the Agreement (the “First Year Commitment”).
La Curva is a 36,100 ha exploration- stage gold project located at low elevation in an area with
favorable infrastructure. Mirasol’s exploration at the Project has outlined three gold prospects at Cerro
Chato, Loma Arthur and SouthWest , situated along the six km long “La Castora” gold trend, which
represent compelling drill targets for high grade, low sulphidation epithermal gold and silver
mineralization. A series of additional gold and silver prospects in the Curva West area warrant further
exploration to define additional drill targets. (Learn more about the La Curva Drill targets).
The Agreement provides five sequential earn-in stages that, if fully exercised, permit OGC to earn up
to 75% of the Project.
Initial Earn-in: Following completion of the First Year Commitment, OGC can elect to proceed with
the balance of the Initial Earn-in obligations over four years from the date of the Agreement to earn a
51% interest in the Project by : (i) funding cumulative exploration expenditures totaling US$7 million
(inclusive of the First Year Commitment); and (ii) making staged cash payments to Mirasol totaling
US$1.5 million (inclusive of the First Year Commitment). Mirasol will serve as operator for exploration
for the first year in return for a 5% management fee. OGC may elect to serve as operator thereafter or
request that Mirasol continue as operator.
PEA Milestone: Following completion of the Initial Earn- in, OGC may elect to increase its interest to
60% of the Project by funding and delivering, within two years of the Initial Earn-In date, a preliminary
economic assessment, in accordance with NI 43- 101, that outlines an inferred resource of not less
than: (i) 500,000 ounces of gold equivalent at a cut-off grade of 0.25 g/t gold equivalent for an open pit
resource; or (ii) 500,000 ounc es of gold equivalent at a cut -off grade of 1.5 g/t gold equivalent for an
underground resource.
Feasibility Milestone: Following completion of the PEA Milestone, OGC may elect to increase its
interest to 65% of the Proj ect by funding and delivering, withi n two years of the PEA Milestone, a
positive feasibility study on the Project in accordance with NI 43-101.
Decision to Mine: Concurrently with the time period to complete the Feasibility Milestone, OGC may
elect to increase its interest to 70% of the Project by funding and delivering the following: (i) a
910 - 850 West Hastings Street, Vancouver, B.C. V6C 1E1 Canada
Tel: 604.602.9989 Fax: 604.609.9946 E-mail: [email protected]
www.mirasolresources.com
24430207.1
feasibility study suitable to be submitted to a recognized financial institution as a basis for lending
funds for the development of a mine; and (ii) approval of a decision to mine by the OGC board.
Production Financing: At the Decision to Mine stage, Mirasol can elect to either: (i) retain 30% of the
Project by funding its proportionate share of further development costs; or (ii) exercise its right to
require that OGC fund its proportionate share of the development costs (to be repaid from 50% of
Mirasol’s net cash flow from the Project) in exchange for Mirasol reducing its interest in the P roject to
25%, and thereby increasing OGC’s interest to 75%.
OGC has the right to extend one of the time periods to complete either the PEA Milestone or the
Feasibility Milestone by making cash payments to Mirasol of US$250,000, or US$500,000
respectively. In the event that OGC fail s to complete the PEA Milestone, its 51% interest shall revert
to a 49% and Mirasol shall assume management control of the Project. In the event that OGC fails to
complete the Feasibility Milestone, then its 60% interest shall revert to a 51% in the Project. The
Agreement includes a dilution provisi on whereby if either parties project equity position should fall
below 10%, then their interest shall convert into a 2% net smelter return royalty.
Mirasol and OGC are currently optimizing the drill program design for the initial drill test of the La
Castora Trend gold prospects. Drill permitting for the Project is well advanced and is anticipated to be
completed within the current quarter. Mirasol and OGC are monitoring the weather conditions to
determine if the dril l program will be initiated during the southern hemisphere winter months , or to
defer the start of drilling until the September 2017 spring period.
Mirasol is a mineral exploration and project generation company focused on the discovery of gold,
silver and copper prospects in the Americas. Strategic joint ventures with producers have enabled
Mirasol to advance its priority projects, focused in high- potential regions in Chile and Argentina.
Mirasol employs an integrated generative and on- ground explor ation approach combining leading
edge technologies and experienced exploration geoscientists to maximize the potential for
discoveries. Mirasol is in a strong financial position and has a significant portfolio of exploration
projects located in Latin America.
Stephen Nano, President and CEO of Mirasol, has approved the technical content of this news
release and is a Qualified Person under NI 43 -101.
For further information, contact:
Stephen Nano
President and CEO
or
John Toporowski
Manager of Investor Relations
Tel: +1 (604) 602-9989:
Email: [email protected]
Website: www.mirasolresources.com
Forward Looking Statements: The information in this news release contains forward looking statements that are
subject to a number of known and unknown risks, uncertainties and other factors that may cause actual results
to differ materially from those anti cipated in our f orward looking statements. Factors that could cause such
differences include: changes in world commodity markets, equity markets, costs and supply of materials relevant
to the mining industry, change in government and changes to regulations affecting the m ining industry. Forward-
looking statements in this release include statements regarding future exploration programs, operation plans,
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24430207.1
geological interpretations, mineral tenure issues and mineral recovery processes. Although we believe the
expectations ref lected in our forward looking statements are reasonable, results may vary, and we cannot
guarantee future results, levels of activity, performance or achievements. Mirasol disclaims any obligations to
update or revise any forward looking statements whether as a result of new information, future events or
otherwise, except as may be required by applicable law.
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