VANCOUVER, March 15 /CNW/ - Bear Creek Mining Corporation (TSX
Venture: BCM) ("Bear Creek" or the "Company") is pleased to announce that the
final Option and Shareholders Agreement was executed between Bear Creek and
Rio Tinto Mining and Exploration Ltd. ("Rio Tinto") on March 15, 2007. The
agreement formally defines and confirms the terms as set out in the Letter of
Understanding signed between the parties on January 19, 2005 and previously
disclosed by the Company. The key terms of the agreement are summarized as
- Bear Creek's only remaining fixed payment to earn its 70% interest is
US$3 million due January 2008. The Company has previously paid a
total of US$2.4 million to Rio Tinto.
- Bear Creek is to pay Rio Tinto the following success fees based upon
Recoverable Reserves defined by a Feasibility Study:
- US$ 1.10 per ounce of gold;
- US$0.015 per ounce of silver; and
- US$0.005 per pound of copper.
- In addition, a success fee of US$5 million shall be paid in each of
the events that Recoverable Reserves exceed 1 million ounces gold
and/or 100 million ounces silver, such payment not to exceed a total
of US$10 million.
- Upon Bear Creek earning its 70% interest, the parties enter into a
joint venture agreement, with Rio Tinto having a 30% interest, and
dilution provisions which conform to industry practices for each
- If the Economic Resources exceed 10 million ounces of gold or
precious metals equivalent (500 million ounces in the case of
silver), Rio Tinto will have a claw-back right to earn up to a 60%
interest by reimbursing Bear Creek three times its expenditures to
that time and providing Bear Creek a deferred carried interest on its
40% of the project through commencement of production.
- The claw-back right ceases at decision to mine.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
For further information, please visit the Company's website
All of Bear Creek's exploration programs and pertinent disclosure of a
technical or scientific nature are prepared by or prepared under the direct
supervision of David Volkert, P.Geo. Bear Creek's Vice President of
Exploration, who serves as the qualified person (QP) under the definitions of
National Instrument 43-101. All diamond drilling has been performed using HQ
diameter core with recoveries averaging greater than 95%. Core is logged and
split on site under the supervision of Bear Creek geologists. Sampling is done
on two-meter intervals and samples are transported by Company staff to Cusco,
Peru for direct shipping to ALS Chemex, Laboratories in Lima, Peru. ALS Chemex
is an ISO 9001:2000-registered laboratory and is preparing for ISO 17025
certification. Silver, lead, and zinc assays utilize a multi-acid digestion
with atomic absorption ("ore-grade assay method"). The QC/QA program includes
the insertion every 20th sample of known standards prepared by SGS
Laboratories, Lima. A section in Bear Creek's website is dedicated to
sampling, assay and quality control procedures.
Certain disclosure in this release, including management's assessment of
Bear Creek's plans and projects, constitutes forward-looking statements that
are subject to numerous risks, uncertainties and other factors relating to
Bear Creek's operation as a mineral exploration company that may cause future
results to differ materially from those expressed or implied in such
forward-looking statements. (*)Any reference to the potential quantity & grade
of mineralization at Corani is conceptual in nature, there has been
insufficient exploration to define a mineral resource on the property and it
is uncertain if further exploration will result in discovery of a mineral
resource on the property. Readers are cautioned not to place undue reliance on
forward-looking statements. Bear Creek expressly disclaims any intention or
obligation to update or revise any forward-looking statements whether as a
result of new information, future events or otherwise.
For further information:
For further information: Andrew Swarthout, President and CEO, or Patrick
De Witt, Investor Relations, Phone: (604) 685-6269, Direct: (604) 628-1111,