Minsud Completes a Restructuring of the Brechas Vacas Option Agreement
TORONTO, ONTARIO--(Marketwired - Jul 4, 2016) - Minsud Resources Corp. (TSX VENTURE:MSR) ("Minsud" or the "Company") announces that it has completed a restructuring and second addendum to the Brechas Vacas Option Agreement.
On January 11, 2012, Minsud announced that its Argentine subsidiary, Minera Sud Argentina S.A. ("MSA"), acquired a 50% beneficial interest in a trust that owns the Brechas Vacas properties comprising part of Minsud's Chita Valley project, with the remaining 50% subject to an option agreement (the "Option") granted in favor of MSA.
On January 6, 2013, Minsud announced the first addendum to the Option that extended the period of time in which the Company is to pay the semi-annual staggered payments and also extended the expiration of the Option up to December 19, 2019.
MSA has now agreed to further amend the payment and expiry terms on the following basis:
| (i). Staggered payments: | ||||
| Date | Cash (US$) | |||
| 24-Jun-16 | 20,000 | |||
| 19-Dec-16 | 20,000 | |||
| 24-Jun-17 | 25,000 | |||
| 19-Dec-17 | 25,000 | |||
| 24-Jun-18 | 30,000 | |||
| 19-Dec-18 | 30,000 | |||
| 24-Jun-19 | 35,000 | |||
| 19-Dec-19 | 50,000 | |||
| 25-Jun-20 | 50,000 | |||
| 19-Dec-20 | 75,000 | |||
| 26-Jun-21 | 120,000 | |||
| TOTAL | 480,000 | |||
| (ii). Exercise of the Option: | ||||
| Expiration Date | Cash (US$) | Shares (US$) | ||
| 26-Jun-22 | 535,000 | 200,000 | ||
| (iii). NSR: | 0.60% | |||
| Option to acquire 50% of NSR: | 400,000 |
The semiannual staggered cash payment is now an aggregate of US$480,000 (previously US$450,000) and the period for payment has been extended for two years while the staggered payments in Minsud's common shares (US$ 180,000) has been eliminated. The expiration date to exercise the Option has been extended to June 2022 and the final payment in Minsud's common shares has been reduced from US$535,000 to US$200,000 (which can be paid in shares or cash). The NSR was reduced from 1.5% to 0.6% having MSA the option of acquiring 50% of the NSR for US$400,000.
About the Brechas Vacas Property:
Brechas Vacas is made up of three mining concessions Luis, Luis I and Luis IV totaling 2,580 hectares in the westernmost part of the consolidated Chita Valley Project, adjacent to the Chita property where the Chinchillones target is located between these two properties.
About Minsud Resources Corp.:
Minsud is a mineral exploration company focused on exploring its flagship Chita Valley Cu-Mo-Au-Ag Project, in the Province of San Juan, Argentina. The Company also holds a 100% owned portfolio of selected early stage prospects, including 18,000 has in Santa Cruz Province, Argentina.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION:
This news release includes certain information that may constitute "forward-looking information" under applicable Canadian securities legislation. 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 reasonable, 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 the risks identified in the Company's TSXV Filing Statement dated April 27, 2011 under the heading "Risk Factors" as available on www.sedar.com. There can be no assurance that such information will prove to be accurate, as actual 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 press 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 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.
Contact
Carlos Massa
President and Chief Executive Officer
Tel: +54-11-4328-4067
cmassa@minsud.com
Mike Johnston
416-479-4466
mike@minsud.com
