Mirasol Signs Letter of Intent with Hochschild Mining for Option on the Indra Precious Metal Project, Chile
NEWS RELEASE
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Mirasol Signs Letter of Intent with Hochschild Mining for Option on the
Indra Precious Metal Project, Chile
VANCOUVER, BC, August 29, 2018 — Mirasol Resources Ltd. (TSXV: MRZ), (OTCPK: MRZLF ) (the “Company” or
“Mirasol”) is pleased to announce that it has signed a letter of Intent (the “ LOI”) for the Company’s Indra
epithermal precious metal project in Chile (the “Project”), with Hochschild Mining plc (LON: HOC) (“HOC”). The
LOI gives HOC the right to acquire, in multiple stages, up to 70% of the Project by completing a series of
exploration and development milestones and making staged option payments. Mirasol can elect to contribute
its 30% of development expenditures or exercise an option for HOC to finance 100% of the development costs
through to production , in this latter scenario, Mirasol would retain a 25% interest in the project and HOC’s
interest would be increased to 75%.
HOC is a leading precious metals producer focusing on high grade silver and gold deposits, with over 50 years of
experience in the Americas . HOC has four operating mines and has extensive experience developing and
operating underground epithermal vein mines.
Stephen Nano, CEO of Mirasol, stated: “We are very pleased to be partnering once again with Hochschild to
explore and advance one of our projects. We look forward to concluding the binding agreement and starting an
aggressive exploration program at the P roject. Indra is an attractive conceptual epithermal gold – silver target
located at low altitude in the Paleocene age belt , which allow s for year-round work and will complement our
seasonal exploration activities in the Mio-Pliocene belt of Chile and in the Santa Cruz region of Argentina.”
Terms of the LOI
Option phase:
• A US$50,000 cash payment upon signing the Agreement;
• A minimum commitment for HOC to spend US$800,000 in the first 18-month exploration program and
to drill a minimum 1,500m within 30 months of the date of the Agreement;
• Mirasol will operate the Project during the Option phase and will receive a 10% management fee from
exploration contracts with values of less than US$250,000 and 5% from contracts with values of more
than US$250,000; and
• At the end of the 18-month period , HOC will have the right to exercise the earn-in phase of the
Agreement.
Earn-in phase:
• Stage 1: If HOC elects to exercise the option to earn-in, HOC will have the right to earn 51% of the Project
over a 3-year period (total 4.5 years) by spending an additional US$ 5.2 million (total US$6 million) and
making two staged payments totalling US$675,000;
• Stage 2: If HOC elects to proceed to Stage 2 of the earn-in, HOC will have the right to earn 6 0% of the
Project over an additional 3-year period (total 7.5 years), by funding the delivery of a positive preliminary
economic assessment, in accordance with NI 43-101 on a resource of not less than 1,000,000 ounces of
gold at a cut-off grade of 0.50 grams per tonne (g/t);
• Stage 3: If HOC elects to proceed to Stage 3 of the earn-in, HOC will have the right to earn 7 0% of the
Project over an additional 3-year period (total 10.5 years) by funding the delivery of a feasibility s tudy,
in accordance with NI 43-101;
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• Stage 4: After completion of Stage 3, Mirasol can elect to contribute its proportionate share ( 30%) of
further development expenditures or exercise a financing option requiring HOC to finance Mirasol’s
share of the development costs through to production in exchang e for a further 5% interest in the
Project. If Mirasol exercises the financing option Mirasol’s interest will be reduced from 30% to 25% and
HOC’s interest will be increased from 70% to 75%.
The LOI contains other customary terms including extension rights to increase the duration of each stage 1, 2 or
3 for cash payments to Mirasol and 2% NSR dilution royalty, triggered upon dilution of a party’s interest to 10%
if the Agreement proceeds beyond 51% earn-in.
The LOI is subject to HOC completing its due diligence review and the parties settling the formal option
agreement on or before September 14, 2018. Mirasol has granted an exclusivity period to HOC to complete these
conditions.
The Indra Project
The Company’s 100% owned 21,000 ha Indra epithermal precious metal project is located in the Paleocene Age
Mineral Belt, 5 km south of the 1.37 Moz1 El Guanaco gold mine in northern Chile.
The Project was staked by Mirasol as an outcome of the Company’s A tacama – Puna Generative program,
encompassing what Mirasol interprets may be the upper levels of a large epithermal gold – silver system. The
Project is characterized by a large carbonate – silica vein and breccia system with weakly anomalous gold - silver
rock chip assays and strongly anomalous epithermal path finder geochemistry. The Indra vein-breccia outcrop
shows geological characteristics in common with carbonate -silica veins know to be present overlying the ore
zone in the HOC Arcata gold – silver mine in Peru. Mirasol has not identified any evidence of modern exploration
at the Project despite its year -round access and its location adjacent to an operating mine . A news release
providing a technical summary of the project will be issued in the near future.
About Mirasol Resources Ltd
Mirasol is a premier project generation company that is focused on the discovery and development of profitable
precious metal and copper deposits. Mirasol employs an integrated generative and on -ground exploration
approach, combining leading -edge technologies and experienced exploration geoscientists to maximize the
potential for discovery. Mirasol is in a strong financial position and has a significant portfolio of exploration
projects located within the Tertiary Age Mineral belts of Chile and the Jurassic age gold - silver district of Santa
Cruz Province Argentina.
Stephen Nano, President and CEO of Mirasol, has approved the technical content of this news release. Mr Nano
is a Charter Professional geologist and Fel low of the Australasian Institute of Mining and Metallurgy (CP and
FAusIMM) and is a Qualified Person under NI 43 -101.
For further information, contact:
Stephen Nano
President and CEO
or
1 S&P Global Market Intelligence
Suite 910 - 850 West Hastings Street, Vancouver, B.C. Canada, V6C 1E1
Tel: +1 604 602 9989 Fax: +1 604 609 9946 E-mail: [email protected]
www.mirasolresources.com
Jonathan Rosset
VP Corporate Development
Tel: +1 (604) 602-9989
Email: [email protected]
Website: www.mirasolresources.com
Quality Assurance/Quality Control of the Indra exploration program: All exploration on the project was supervised by
Mirasol CEO, Stephen C. Nano, who is the Qualified Person under NI 43 -101.
Mirasol applies industry standard exploration sampling methodologies and techniques. All geochemical rock and drill
samples are collected under the supervision of the company’s geologists in accordance with industry practice. Geochemical
assays are obtained and reported under a quality assurance and quality control (QA/QC) program. Samples are dispatched
to an IS O 9001:2008 accredited laboratory in Chile for analysis. Assay results from surface rock, channel, trench, and drill
core samples may be higher, lower or similar to results obtained from surface samples due to surficial oxidation and
enrichment processes or due to natural geological grade variations in the primary mineralization
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 othe r factors that may cause actual results to differ materially
from those anticipated in our forward looking statements. Factors that could cause such differences include: changes in
world commodity markets, equity markets, costs and supply of materials rele vant to the mining industry, change in
government and changes to regulations affecting the mining industry. Forward -looking statements in this release include
statements regarding future exploration programs, operation plans, geological interpretations, mi neral tenure issues and
mineral recovery processes. Although we believe the expectations reflected 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 .