Cornerstone Signs Strategic Alliance Letter of Intent With Ecuador's State Mining Company ENAMI EP
MOUNT PEARL, NEWFOUNDLAND AND LABRADOR--(Marketwired - Apr 14, 2015) - Cornerstone Capital Resources Inc. ("Cornerstone" or "the Company") (TSX VENTURE:CGP)(FRANKFURT:GWN)(BERLIN:GWN)(OTCBB:CTNXF) announces it has signed a letter of intent with Ecuador's State Mining Company "ENAMI EP", to jointly explore new prospective gold and copper properties identified using Cornerstone's extensive proprietary geological data base gathered since 2005 in Ecuador. The principal terms of the arrangement are as follows:
Cornerstone will identify geologically prospective areas covering between 5,000 to 50,000 hectares in parts of Ecuador that are currently off limits to application by private companies. ENAMI will use its preferential right to acquire the mineral exploration concession rights, and then Cornerstone (employing its prospect generator business model) and a funding partner(s) (who will earn a majority interest in the project, the exact percentage to be negotiated with Cornerstone) will earn an interest in each specific area or project explored, by incurring committed first year prospecting expenditures, optional early and advanced stage exploration expenditures (including drilling) for a period of up to 8 years, and, if warranted, additional sums in optional feasibility study expenditures for up to 4 additional years.
At the end of the advanced exploration phase (prior to feasibility study), the parties will form a joint venture, ENAMI will contribute the mineral rights in return for a 16% interest, and Cornerstone and its funding partner will contribute their expenditures incurred to date in return for an 84% interest. ENAMI will have a free carried interest through to completion of a feasibility study. In the event Cornerstone and its funding partner(s) agree to make a Production Decision, ENAMI will have the option to convert 5% of its participating interest to a 1% royalty, and have Cornerstone and its funding partner(s) finance the remaining interest or part of the remaining interest under certain commercial terms, such financing to be repaid out of project cash flows. Cornerstone will have a right of first refusal (ROFR) over any sale by ENAMI of its equity participation in the joint venture or any royalty.
Brooke Macdonald, President of Cornerstone, stated: "This letter of intent with ENAMI is the result of many months of negotiations. Because most of Ecuador is still not open for staking or acquisition of mineral rights on application, this strategic alliance will give Cornerstone, and any companies that partner with Cornerstone, priority access to some of the most prospective gold and copper prospects in Ecuador, and gives ENAMI an opportunity over the coming years to gain a minority interest in multiple projects with Cornerstone and different funding partners. As a state enterprise, ENAMI's assistance in permitting and with local communities in obtaining a social license for the projects will be invaluable. We already have identified several promising targets, and are hopeful of repeating the discovery success we had at the Cascabel project in northern Ecuador."
About Cornerstone:
Cornerstone Capital Resources Inc. is a well-funded mineral exploration company based in Mount Pearl, Newfoundland and Labrador, Canada, with a diversified portfolio of projects in Ecuador and Chile, and a strong technical team that has proven its ability to identify, acquire and advance properties of merit. The company's business model is based on generating exploration projects whose subsequent development is funded primarily through partnerships. Commitments from partners constitute significant validation of the strength of Cornerstone's projects.
Further information is available on Cornerstone's website www.cornerstoneresources.com.
Cautionary Notice:
This news release may contain 'Forward-Looking Statements' that involve risks and uncertainties, such as statements of Cornerstone's plans, objectives, strategies, intentions and expectations. The words "potential," "anticipate," "forecast," "believe," "estimate," "expect," "may," "project," "plan," and similar expressions are intended to be among the statements that identify 'Forward-Looking Statements.' Although Cornerstone believes that its expectations reflected in these 'Forward-Looking Statements' are reasonable, such statements may involve unknown risks, uncertainties and other factors disclosed in our regulatory filings, viewed on the SEDAR website at www.sedar.com. For us, uncertainties arise from the behaviour of financial and metals markets, predicting natural geological phenomena and from numerous other matters of national, regional, and global scale, including those of an environmental, climatic, natural, political, economic, business, competitive, or regulatory nature. These uncertainties may cause our actual future results to be materially different than those expressed in our Forward-Looking Statements. Although Cornerstone believes the facts and information contained in this news release to be as correct and current as possible, Cornerstone does not warrant or make any representation as to the accuracy, validity or completeness of any facts or information contained herein and these statements should not be relied upon as representing its views subsequent to the date of this news release. While Cornerstone anticipates that subsequent events may cause its views to change, it expressly disclaims any obligation to update the Forward-Looking Statements contained herein except where outcomes have varied materially from the original statements.
On Behalf of the Board,
Brooke Macdonald, President and CEO
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.
Contact
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