VANCOUVER, March 24 /CNW/ - Amato Exploration Ltd. (the "Company" or "Amato") (TSX-V:AMT), (http://www.amatoexploration.com) announces that it is currently aiming to augment its property portfolio by seeking iron ore resource projects with significant reserves. To that end, it is pleased to announce it has reached an understanding with China Metallurgical Industry Planning & Research Institute ("MPI") (http://www.steelplanning.cn ) a subsidiary of China Iron & Steel Association ("CISA")(http://www.chinaisa.org.cn ) whereby MPI and CISA will provide to Amato:
- research services on the Iron & Steel markets in China; and
- if and when Amato secures a significant iron ore property:
1. advisory services and strategic planning for negotiating with the
Chinese Steel companies for forward sale contracts; and
2. introductory services for Chinese Steel companies interested in
securing long term forward contracts for iron ore for shipment to
Mr. Mel Reeves, President of Amato Exploration Ltd. stated that "I am very pleased with the progress we have made in China to identify partners which will enable us to develop our presence in the largest current steel producing country in the world with over 50% of the world's steel production."
Mr. Reeves also stated "We are committed to securing global iron ore resource projects with significant reserves. Developing these Chinese partner relationships will ensure the viability of future financing and production decisions and ensure the Company secures long term economic value for its resources."
About China Iron & Steel Association:
CISA is a non-profit organization founded in 1999 (formerly China Metallurgical Enterprise Management Association). CISA members, such as CMIPRI, consist of Chinese enterprises, institutions, societies and individuals in the iron and steel industry, who participate in the organization voluntarily subject to certain regulation.
CISA now has over 119 group members whose steel output, sales and staff account for 92.6%, 90% and 75%, respectively of the total Chinese domestic steel industry. CISA is made up of 7 administrative bodies with 30 staff and 7 working committees.
CISA's responsibility is to link the Chinese iron & steel industry with the Chinese government, to provide "two-way services" to Chinese steelmakers and institutions, as well as to explore cooperative opportunities with overseas companies and organizations.
MINERA COPPER CANYON
Amato also announces that, further to its news release of October 20, 2009, it has mutually agreed with Minera Copper Canyon de Mexico SA de CV and its beneficial holder, Fierce Investments Ltd. (together, the "Vendors") to terminate the letter agreement dated October 19, 2009 between Amato and the Vendors, pursuant to which Amato was to acquire up to a 50% interest in the El Creston property. A formal termination agreement will be finalized and executed in due course. A reconnaissance geological survey was conducted in December 2009, results of which were announced on February 3, 2010. Based on these results, the initial due diligence carried out by Amato and the amount of consideration payable under the letter agreement for the El Creston property, Amato's board of directors made the determination that the El Creston property is not an appropriate property for Amato's business model, and it is not in the best interests of shareholders to proceed with the acquisition of this property. Robert Biagioni who was appointed to the board of Amato's directors as a representative of Fierce Investments, as previously announced, has resigned as a director effective immediately pursuant to the terms of the letter agreement. We thank Mr. Biagioni for his contribution to the Company.
About Amato Exploration Ltd.:
Amato Exploration Ltd. is a global mineral exploration company based in Vancouver, B.C., Canada. We are currently focused on exploring the Colissio silver deposit in Mexico and seeking significant iron ore mineral properties globally.
This news release contains forward-looking statements which reflect management's current expectations regarding the Company's objectives, plans, goals, strategies, future growth, results of operations, performance and business prospects and opportunities. These forward-looking statements are not guarantees, but only predictions. Although the Company believes that these statements are based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a number of factors that could cause actual results to vary significantly from current expectations. These factors and other risks and uncertainties are discussed in the Company's materials filed with the Canadian securities regulatory authorities from time to time, as identified in the Company's disclosure record on www.sedar.com. The forward-looking statements included in this news release are made only as of the date of this news release and the Company does not undertake to publicly update these forward-looking statements to reflect 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 news release.
SOURCE AMATO EXPLORATION LTD.
For further information: For further information: Mr. Melvin R. Reeves, Chief Executive Officer, Amato Exploration Ltd., Tel: (604) 315-2559; Investor relations contact: Mr. John Bevilacqua, Acqua Capital Group., Tel: (604) 601-8505; For further information, please send enquires to email@example.com.