Atacama Pacific Provides Corporate Update
TORONTO, ONTARIO--(Marketwired - Oct 26, 2016) - Atacama Pacific Gold Corp. (TSX VENTURE:ATM) ("Atacama Pacific") announces that it has made an application the TSX Venture Exchange (the "Exchange") to extend the expiry date of 3,362,500 common share purchase warrant (the "2013 Warrants") that were issued on November 29, 2013. Currently, each 2013 Warrant entitles the holder to subscribe for one Atacama Pacific common share at an exercise price of C$1.40 any time prior to November 29, 2016. Atacama Pacific is applying to extend the expiry date of the 2013 Warrants to March 31, 2018, which extension will be conditional upon acceptance by the Exchange. The expiry date of 637,500 2013 Warrants owned by Atacama's officers and directors will not be extended.
Atacama Pacific also announces that it has entered into an agreement to option one of its non-core properties, the Anocarire property, to a company controlled by one of Atacama Pacific's directors, Paul Champagne. The option agreement calls for payments of (i) US$50,000 by September 30, 2016 (paid); (ii) US$150,000 by September 30, 2017; (iii) US$800,000 by September 30, 2018; and (iv) US$4,000,000 by September 30, 2018 (half of which is payable in shares of the optionee at its option). Atacama Pacific will retain a 1% net smelter royalty on any minerals produced from the property.
As previously reported, Gold Fields Ltd., having fulfilled the conditions of its agreement with Atacama Pacific, has exercised its option and acquired the Pircas Gold Project located approximately 15 kilometres from its Salares Norte development project. Atacama Pacific now holds a 1.25% net smelter royalty on any minerals produced from the property.
Atacama Pacific is currently reviewing development options as it prepares to commence a feasibility study for the Cerro Maricunga Oxide Gold Deposit, with the goal of reducing initial capital costs through the elimination of the secondary and tertiary crushers, by using valley fill leaching at a location closer to the open pit and by commencing operations at a lower production rate of approximately 40,000 tonnes per day over the first years of production, ramping up to 80,000 tonnes per day. Further, the Cerro Maricunga feasibility study will take into account the positive impact of the current economic conditions on operating costs such as lower consumables (power, lime, etc.), stronger United States currency, and potentially lower equipment leasing costs.
National Instrument 43-101 Disclosure
Maria Leticia Conca Benito, Mining Engineer, Universidad de Chile, Registered Member of Chilean Mining Commission, CEO and Project Director, Alquimia, was the independent qualified person, as defined by NI 43- 101, responsible for the compilation of the information and preparation of the overall 2014 Prefeasibility Study (the "PFS"). Carlos Guzmán, a mining engineer, Fellow of the Australasian Institute of Mining and Metallurgy and a registered member of the Chilean Mining Commission, was the independent qualified person responsible for the mining related sections of the 2014 PFS including the generation of the pit shell for constrained resources and the mineral reserve estimate.
About Atacama Pacific Gold Corporation
Atacama Pacific's business is the acquisition, exploration and development of precious metals resource properties in Chile. Atacama Pacific's principal mineral property is the Cerro Maricunga oxide-associated, breccia-hosted gold project, located in Region III, 140 kilometres by road northeast of the city of Copiapo. Atacama Pacific's goal is to become a producer of gold through the development of the Cerro Maricunga Gold Project. The Cerro Maricunga oxide gold deposit hosts total Proven and Probable mineral reserves of 294.4 million tonnes grading 0.40 grams per tonne for 3,743 million ounces of gold representing one of the largest undeveloped oxide associated gold deposits in the world not controlled by a producer.
FORWARD LOOKING STATEMENTS
This news release contains forward looking statements, including predictions, projections and forecasts. Often, but not always, forward looking statements can be identified by the use of words such as "plans", "planning", "expects" or "does not expect", "continues", "scheduled", "estimates", "forecasts", "intends", "potential", "anticipates", "does not anticipate", or "belief", or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.
Forward looking statements involve known and unknown risks, future events, conditions, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, prediction, projection, forecast, performance or achievements expressed or implied by the forward looking statements. Such factors include, among other items, the timing of the completion of the update 2014 PFS or feasibility study, the impact of proposed updated mining conditions, including crushing and processing methods and mining rates, the results of due diligence activities, changes in economic parameters and assumptions, the interpretation and actual results of current exploration activities; changes in project parameters as plans continue to be refined; the results of regulatory and permitting processes; future prices of gold; possible variations in grade or recovery rates; failure of equipment or processes to operate as anticipated; labour disputes and other risks of the mining industry; the results of further economic and technical studies, delays in obtaining governmental approvals or financing or in the completion of exploration, as well as those factors disclosed in Atacama Pacific's publicly filed documents.
Although Atacama Pacific has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking statements.
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
Atacama Pacific Gold Corp.
Carl B. Hansen
President and CEO
416 861 8267
info@atacamapacific.com
www.atacamapacific.com
