Iron Creek Enters Into Purchase Agreement With Minera Fuego
Limitada for Five Exploration Properties in Chile
VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 6, 2014) - Iron
Creek Capital Corp. (TSX-VENTURE:IRN) ("Iron Creek" or the
"Company") is pleased to announce that it has signed a binding
Letter of Intent (the "Agreement") with Minera Fuego Limitada
("Fuego"), a privately owned Chilean exploration company, whereby
Iron Creek will acquire a 100% interest in five properties
prospective for gold, silver and copper, located in northern
Chile.
About the
Agreement
Pursuant to the
Agreement, a wholly owned Chilean subsidiary of Iron Creek will
purchase from Fuego the five mining concessions in northern Chile
known as the San Guillermo, Calvario-Mirador, San Valentino, Bronce
Weste and Reina Hija concessions (the "Concessions").
The purchase is
subject to the completion of a satisfactory due diligence review by
Iron Creek, and is intended to be completed within 60 days from the
signing of the Agreement.
In consideration for
the Concessions, Iron Creek shall grant to Fuego a 2% Net Smelter
Royalty on precious metals and a 1% Net Smelter Royalty on base
metals mined from the Concessions (the "NSR Royalties") and,
subject to regulatory approval, issue to Fuego and its nominees or
assigns, 3,479,464 common shares, which shall represent 9.9% of the
issued and outstanding share capital of the Company.
Additionally, the
Company shall issue, subject to regulatory approval, a further 1
million common shares to Fuego upon completion by Iron Creek of its
first feasibility study regarding a project to be developed on any
of the Concessions.
Iron Creek shall
have the perpetual right to acquire 50% of each of the NSR
Royalties on each property in consideration of a cash payment to
Fuego of USD 5.0 million, on a property by property basis.
Following closing,
Iron Creek shall appoint a representative of Fuego to its Board of
Directors and Fuego shall have the right to designate a member of
the Board so long as Fuego owns more than 5% of the Company's
common shares.
About the
Concessions
San Guillermo
comprises more than 24,000 Ha located about 70 km SE of Taltal
within the Palaeocene Belt of northern Chile, and complements Iron
Creek's 50,000 Ha Las Pampas property located some 100 km to the
north that was recently optioned to Kinross Gold's (TSX:K) Chilean
subsidiary. The San Guillermo property also surrounds Yamana Gold's
(TSX:YRI) Amancaya project, where several precious metals-rich
veins have been drill tested. The San Guillermo property is mainly
prospective for low-sulphidation epithermal precious metals veins
similar to Yamana Gold's El Peñon and Fortuna mines, located to the
north of Iron Creek's Las Pampas property. Previous exploration by
Fuego, including approximately 46,000m of drilling, has focused on
several targets on the San Guillermo property. Numerous drill
intercepts are reported, but much of the property remains
unexplored.
Calvario-Mirador are
two properties separated by about 5 km of strike located about 83
km northeast of La Serena, with the northern Calvario (2,200 Ha)
property representing a porphyry Cu-Mo target with possible
secondary enrichment, and the southern Mirador (3,300 Ha) property
representing a higher-level system with anomalous gold at surface.
Approximately 4,300m of drilling at Calvario has cut weak secondary
enrichment to date. No drilling has been carried out at
Mirador.
Bronce Weste totals
4,344 Ha and is located southeast of Los Vilos and immediately to
the west of the El Bronce de Petorca Au-Ag-Cu mine (Cia. Minera
Can-Can S.A.). A limited number of structural targets anomalous in
Cu, Au and other elements have been tested by Fuego by almost
5,000m of drilling. A very large, structurally controlled
alteration zone on the property remains to be fully explored.
San Valentino totals
1,500 Ha and is located east-southeast of Los Vilos and 25 km east
of the El Bronce de Petorca Au-Ag-Cu mine (Cia. Minera Can-Can
S.A.). Sub-volcanic porphyries of likely Paleocene age intrude
Upper Cretaceous volcanic rocks and are associated with advanced
argillic alteration with important Mo-Au-Zn-Cu geochemical
anomalies, possibly representing the upper levels of a deep
porphyry copper target. Peripheral auriferous silica ledges have
been tested by approximately 1,600m of drilling carried out by
Fuego.
Reina Hija is a
porphyry copper target totalling 1,800 Ha located along the
northern extensions of the Domeyko Cordillera porphyry copper belt,
some 2.5 km south of the Queen Elizabeth porphyry copper deposit
(low grade - Anglo American), and 34 km northeast of BHP Billiton's
Cerro Colorado copper mine. Hydrothermal alteration and anomalous
geochemistry on the property suggest a possible porphyry copper
target likely related to the neighbouring Queen Elizabeth
target.
Tim Beale, President
of Iron Creek, commented: "The signing of this agreement is an
important milestone for Iron Creek. Having recently completed the
consolidation of the Company's shares, and successfully raised
approximately $5.6 million in a private placement financing, the
acquisition of Minera Fuego's exploration properties totalling more
than 37,000 Ha located along some of the most prospective mineral
belts in northern Chile, signifies a major advance for the Company.
The important San Guillermo property is complementary to our
existing Las Pampas and Magallanes properties, and establishes Iron
Creek as a major player in the important Paleocene mineral belt.
These properties are low altitude, easily accessed, and are highly
prospective for bonanza-style epithermal precious metals veins.
Calvario- Mirador, San Valentino and Reina Hija all represent
porphyry copper targets, with significant untested potential,
particularly for deeper hypogene copper centres. Bronce West has
potential for mineralised veins, as well as a possible deep
porphyry copper target.
The company will
focus in the short term in reprocessing existing exploration
databases in order to refine target models, complemented by limited
additional surface exploration, prior to farming out the most
attractive targets for third party investment and drill
testing."
Dr. Demetrius Pohl,
PhD., Certified Professional Geoscientist (CPG), an independent
consultant, is the Company's Qualified Person for the purposes of
National Instrument 43-101 Standards of Disclosures for Mineral
Projects of the Canadian Securities Administrators, and has
approved the written disclosure of the technical information
contained in this news release.
About Iron
Creek
Iron Creek Capital
Corp. is a Vancouver-based exploration company focused on the
acquisition and exploration of world-class mineral systems in
Chile. The Company has assembled a portfolio of exploration
projects prospective for gold, silver and copper
mineralization.
ON BEHALF OF THE
BOARD
Timothy J. Beale,
President
Neither the
TSX Venture Exchange nor the Investment Industry Regulatory
Organization of Canada accepts responsibility for the adequacy or
accuracy of this release.
Forward-Looking
Statement
Some of the
statements in this news release contain forward-looking information
that involves inherent risk and uncertainty affecting the business
of Iron Creek Capital Corp. Actual results may differ materially
from those currently anticipated in such statement.
Iron Creek Capital
Corp.604.687.5544604.688.1157info@ironcreekcapital.comwww.ironcreekcapital.com
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