Minsud Announces South32 to Contribute Funds of Third Tranche to Continue Exploring the Chita Valley Project
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TSX-V: MSR
November 9, 2021
Minsud Announces South32 to Contribute Funds of Third
Tranche to Continue Exploring the Chita Valley Project
TORONTO, ONTARIO – Minsud Resources Corp. (TSX -V: MSR) (“Minsud” or the
“Company”) is pleased to announce that a wholly -owned subsidiary of South32 Limited
(“South32”) has given notice of its intention to fund the third tranche exploration activities in
2022 as per the earn -in agreement executed on November 1, 2019 (the “ Earn-in
Agreement”). The 2022 program will largely include in -fill and scouting drilling , with the
broader objectives of continuing the delineation of the resource footprint at Chinchillones area
and establish additional porphyry centres along the Chita Valley Project, in the Province of
San Juan, Argentina.
Minsud is actively completing the second tranche exploration program at the Chita Valley
Project which is also being funded by South32. The current 2021 program is mostly focused
on drilling the Chinchillones area, where the drill hole results confirmed the presence of highly
significant Zn-Pb-Ag mineralization that overprinted at least two (2) porphyry centres. Partial
results of this year’s explorat ion program were released by Minsud on October 7, 2021, and
August 26, 2021. The reported substantial porphyry Cu mineralization supports the potential
of Chinchillones to host clusters of intrusion -hydrothermal phreatic breccias affiliated with
porphyry mineralization.
Ramiro Massa, Minsud’s President & CEO, said: " The decision by South32, a globally
diversified mining and metals company, to partner with Minsud to explore in Argentina and
advance our Chita Valley Project in San Juan province demonstrates South32's confidence in
our exploration strategy , our technical capabilities and commitment. Minsud's management
and exploration team are looking forward to working closely with South32 in the years ahead.
We are very excited about what we can achieve together."
Mr. Mario Alfaro, Professional Geoscientist, VP -Exploration of the Company, is a qualified
person as defined by Canadian National Instrument 43-101. Mr. Alfaro visited the property and
has read and approved the contents of this release.
Earn-in Agreement
The Earn-in Agreement grants to South32 the right to acquire a 50.1% direct interest in the
Company’s Argentinean operating subsidiary Minera Sud Argentina S.A. (“ MSA”) at the end
of the earn -in period. Under the Earn -in Agreement, South32 will provide further funding to
MSA over the next two (2) remaining years such that its aggregate funding is (i) not less than
C$10.5 million by December 31, 202 2; and (ii) not less than C$14 million by December 31,
2023. South32 has the right to withdraw at the end of each year.
If South32 exercises its earn-in right, it may elect to fund a pre-feasibility study with a minimum
spend of C$ 41 million, which would entitle it to elect to increase its 50.1% direct interest in
MSA to 70%.
About Minsud Resources Corp.
Minsud is a mineral exploration company focused on explori ng its flagship Chita Valley Cu -
Mo-Au-Ag-Pb-Zn Project, in the Province of San Juan, Argentina. The Company also holds a
100% owned portfolio of selected early -stage prospects, including 6,000 ha in Santa Cruz
Province, Argentina.
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About South32 Limited
South32 is a globally diversified mining and metals company. The company’s purpose is to
make a difference by developing natural resources, improving people’s lives now and for
generations to come. South32 is trusted by its owners and partners to r ealise the potential of
their resources. South32 produces bauxite, alumina, aluminium, metallurgical coal,
manganese, nickel, silver, lead and zinc at operations in Australia, Southern Africa and South
America. With a focus on growing its base metals expos ure, South32 also has two
development options in North America and several partnerships with junior explorers around
the world.
FOR FURTHER INFORMATION PLEASE CONTACT
Ramiro Massa
President and Chief Executive Officer
+1 416-479-4466
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION:
This news release includes certain information that may constitute forward-looking information
under applicable Canadian securities laws. Forward -looking information includes, but is not
limited to, statements about strategic plans, spending commitments, future operations, results
of exploration, anticipated financial results, future work programs, capital expenditures and
objectives. Forward-looking information is necessarily based upon a number of estimates and
assumptions that, while considered reasonabl e, are subject to known and unknown risks,
uncertainties, and other factors which may cause the actual results and future events to differ
materially from those expressed or implied by such forward-looking information including, but
not limited to: fluctua tions in the currency markets (such as the Canadian dollar, Argentina
peso, and the U.S. dollar); changes in national and local government, legislation, taxation,
controls, regulations and political or economic developments in Canada and Argentina or other
countries in which the Company may carry on business in the future; operating or technical
difficulties in connection with exploration and development activities; risks and hazards
associated with the business of mineral exploration and development (including environmental
hazards or industrial accidents); risks relating to the credit worthiness or financial condition of
suppliers and other parties with whom the Company does business; presence of laws and
regulations that may impose restrictions on mining, including those currently enacted in
Argentina; employee relations; relationships with and claims by local communities; availability
and increasing costs associated with operational inputs and labour; the speculative nature of
mineral exploration and deve lopment, including the risks of obtaining necessary licenses,
permits and approvals from government authorities; business opportunities that may be
presented to, or pursued by, the Company; challenges to, or difficulty in maintaining, the
Company’s title t o properties; risks relating to the Company’s ability to raise funds; and the
factors identified under “Risk Factors” in the Company's Filing Statement dated April 27, 2011.
There can be no assurance that such information will prove to be accurate, as actu al results
and future events could differ materially from those anticipated in such information.
Accordingly, readers should not place undue reliance on forward -looking information. All
forward-looking-information contained in this news release is given as of the date hereof and
is based upon the opinions and estimates of management and information available to
management as at the date hereof. The Company disclaims any intention or obligation to
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update or revise any forward-looking information, whether as a result of new information, future
events or otherwise, except as required by 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.