VANCOUVER, May 25, 2017 /CNW/ - Mirasol Resources
Ltd. (TSX-V: MRZ, Frankfurt: M8R) (the "Company"
or "Mirasol") is pleased to announce that on May 18 2017, the Company and one of its 100%
owned Argentine subsidiaries, signed a definitive exploration and
option agreement (the "Agreement") with OceanaGold
Corporation ("OGC") to explore the Company's 100% owned, La
Curva gold project, located in Santa Cruz
Province, Argentina (the
"Project").
OGC is a mid-tier, high-margin international gold producer with
operations in New Zealand,
the Philippines and has recently
commissioned the multimillion ounce Halie gold mine in the United States. The La Curva Agreement
grants OGC the option to acquire, in five stages, up to a 75%
interest in the Project and requires OGC to make a first year
commitment of US$1.25 million in
exploration expenditures, complete 3,000 metres of drilling, and
make a US$100,000 option payment to
Mirasol on signing the Agreement (the "First Year
Commitment").
La Curva is a 36,100 ha exploration-stage gold project located
at low elevation in an area with favorable infrastructure.
Mirasol's exploration at the Project has outlined three gold
prospects at Cerro Chato, Loma
Arthur and SouthWest, situated along the six km long "La
Castora" gold trend, which represent compelling drill targets for
high grade, low sulphidation epithermal gold and silver
mineralization. A series of additional gold and silver prospects in
the Curva West area warrant further exploration to define
additional drill targets. (Learn more about the La Curva Drill
targets).
The Agreement provides five sequential earn-in stages that, if
fully exercised, permit OGC to earn up to 75% of the Project.
Initial Earn-in: Following completion of the First Year
Commitment, OGC can elect to proceed with the balance of the
Initial Earn-in obligations over four years from the date of the
Agreement to earn a 51% interest in the Project by: (i) funding
cumulative exploration expenditures totaling US$7 million (inclusive of the First Year
Commitment); and (ii) making staged cash payments to Mirasol
totaling US$1.5 million (inclusive of
the First Year Commitment). Mirasol will serve as operator
for exploration for the first year in return for a 5% management
fee. OGC may elect to serve as operator thereafter or request that
Mirasol continue as operator.
PEA Milestone: Following completion of the Initial
Earn-in, OGC may elect to increase its interest to 60% of the
Project by funding and delivering, within two years of the Initial
Earn-In date, a preliminary economic assessment, in accordance with
NI 43-101, that outlines an inferred resource of not less than: (i)
500,000 ounces of gold equivalent at a cut-off grade of 0.25 g/t
gold equivalent for an open pit resource; or (ii) 500,000 ounces of
gold equivalent at a cut-off grade of 1.5 g/t gold equivalent for
an underground resource.
Feasibility Milestone: Following completion of the PEA
Milestone, OGC may elect to increase its interest to 65% of the
Project by funding and delivering, within two years of the PEA
Milestone, a positive feasibility study on the Project in
accordance with NI 43-101.
Decision to Mine: Concurrently with the time period to
complete the Feasibility Milestone, OGC may elect to increase its
interest to 70% of the Project by funding and delivering the
following: (i) a feasibility study suitable to be submitted to a
recognized financial institution as a basis for lending funds for
the development of a mine; and (ii) approval of a decision to mine
by the OGC board.
Production Financing: At the Decision to Mine stage,
Mirasol can elect to either: (i) retain 30% of the Project by
funding its proportionate share of further development costs; or
(ii) exercise its right to require that OGC fund its proportionate
share of the development costs (to be repaid from 50% of Mirasol's
net cash flow from the Project) in exchange for Mirasol reducing
its interest in the Project to 25%, and thereby increasing OGC's
interest to 75%.
OGC has the right to extend one of the time periods to complete
either the PEA Milestone or the Feasibility Milestone by making
cash payments to Mirasol of US$250,000, or US$500,000 respectively. In the event that
OGC fails to complete the PEA Milestone, its 51% interest shall
revert to a 49% and Mirasol shall assume management control of the
Project. In the event that OGC fails to complete the Feasibility
Milestone, then its 60% interest shall revert to a 51% in the
Project. The Agreement includes a dilution provision whereby
if either parties project equity position should fall below 10%,
then their interest shall convert into a 2% net smelter return
royalty.
Mirasol and OGC are currently optimizing the drill program
design for the initial drill test of the La Castora Trend gold
prospects. Drill permitting for the Project is well advanced
and is anticipated to be completed within the current quarter.
Mirasol and OGC are monitoring the weather conditions to determine
if the drill program will be initiated during the southern
hemisphere winter months, or to defer the start of drilling until
the September 2017 spring
period.
Mirasol is a mineral exploration and project generation company
focused on the discovery of gold, silver and copper prospects in
the Americas. Strategic joint ventures with producers have enabled
Mirasol to advance its priority projects, focused in high-potential
regions in Chile and Argentina. Mirasol employs an integrated
generative and on-ground exploration approach combining leading
edge technologies and experienced exploration geoscientists to
maximize the potential for discoveries. Mirasol is in a strong
financial position and has a significant portfolio of exploration
projects located in Latin
America.
Stephen Nano, President and CEO
of Mirasol, has approved the technical content of this news release
and is a Qualified Person under NI 43 -101.
Forward Looking Statements: The information in this news release
contains forward looking statements that are subject to a number of
known and unknown risks, uncertainties and other factors that may
cause actual results to differ materially from those anticipated in
our forward looking statements. Factors that could cause such
differences include: changes in world commodity markets, equity
markets, costs and supply of materials relevant to the mining
industry, change in government and changes to regulations affecting
the mining industry. Forward-looking statements in this release
include statements regarding future exploration programs, operation
plans, geological interpretations, mineral tenure issues and
mineral recovery processes. Although we believe the expectations
reflected in our forward looking statements are reasonable, results
may vary, and we cannot guarantee future results, levels of
activity, performance or achievements. Mirasol disclaims any
obligations to update or revise any forward looking statements
whether as a result of new information, future events or otherwise,
except as may be required by applicable 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
SOURCE Mirasol Resources Ltd.