PHOENIX, May 31, 2013
/PRNewswire/ -- KEY CAPITAL CORPORATION (OTCPink: KCPC)
is pleased to advise that the Company has today made an offer of
$350,000 to Arco Resources Corp
("Arco") to purchase the following three properties in Oaxaca, Mexico:
Tres Hermanas
The Tres Hermanas consists of three
separate mining claims and covers a silver-lead-zinc-bearing vein
system that has historic underground workings on five levels along
a 400-meter strike. Previous underground sampling showed local
values >500 grams per ton (g/t) of silver. In addition, chip
samples taken included values as high as 764.5 g/t of silver and
10.4% lead across 1.5 meters.
La Luna
The La Luna property is immediately
adjacent to the Tres Hermanas claim and offers a number of high
value exploration targets. The combined land package of Tres
Hermanas and La Luna is greater than 24,000 hectares.
Predilecta
The Predilecta Property consists of three
separate mining claims comprising a total of 3181 hectares, located
68 kilometers south-southeast of Oaxaca City. The property contains multiple
mesothermal gold-bearing quartz veins. This property has historic
workings and is close to infrastructure and transportation.
Previous underground sampling indicated 143 g/t Au over 0.45m.
Underground sampling averaged 19.26 g/t Au along 95m with an
average width of 0.57m.
Key Capital has offered a Purchase consideration of $350,000 plus a 0.5% NSR payable by:
- $50,000 non-refundable cash
payment on 19 July 2013.
- $50,000 cash payment on
19 August 2013.
- $30,000 cash payment on
30 September 2013.
- $85,000 cash within 7 days from
the date that any mining activity on any or all of the sale
properties reaches a total one million ounces of silver equivalent
production.
- $135,000 payable by the issue of
180,000 fully paid Ordinary shares in Key Capital Corporation.
These shares will be issued on or before 7
October 2013 and will be subject to an 18 month hold from
the date of issue.
- A 0.5% NSR interest in the future production of the sold
properties.
Key Capital intends to partner the proposed acquisition with
operational and financing interests with which the Company is
already in discussion. These operational interests will be
responsible for the ongoing planned exploration and development of
the properties should the Key Capital Offer proceed. Subject to the
ultimate feasibility of mining operations Key Capital will also
arrange all project financing in exchange for an ongoing streaming
interest.
ABOUT KEY CAPITAL: Key Capital is a resource funding business
that provisions institutional project financing for mining
operations through streaming or equity agreements. The Company is a
Georgia corporation headquartered
in Phoenix, Arizona.
For further information see www.keycapitalgroup.com or
contact:
Chris Nichols
President/CEO
Key Capital Corporation
+1 (480) 745-2565
info@keycapitalgroup.com
Statements about Key Capital Corporation's future
expectations, including statements about its anticipated streaming
business, the metal purchase agreements, any other equity or joint
venture interests, and all other statements in this press release
other than historical facts, are "forward-looking statements"
within the meaning of Section 27a of the Securities Act of 1933,
Section 21e of the Securities Exchange Act of 1934, and as that
term is defined in the Private Securities Litigation Reform Act of
1995. Key Capital Corporation intends that such
forward-looking statements be subject to the safe harbors created
thereby. These future events may not occur as and when expected, if
at all, and, together with Key Capital Corporation's business, are
subject to various risks and uncertainties. Key Capital
Corporation's actual results could differ materially from expected
results as a result of a number of factors, including the
uncertainties inherent in entering into any metal purchase or other
financing agreements, the ability to fund metal purchase
agreements, the evaluation of potential opportunities regarding
natural resource mines, the level of corporate expenditures and
monies available for purchasing natural resource interests, capital
market conditions, and other factors. There are no guarantees that
Key Capital Corporation can successfully negotiate any metal
purchase or financing agreements or that any such agreements will
be profitable, or that the natural resource interests acquired
thereby will prove to be commercially successful. Key Capital
Corporation undertakes no duty to update forward-looking
statements. Key Capital Corporation disclaims any duty or
obligation to update the information contained in this press
release.
SOURCE Key Capital Corporation