/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES/
TORONTO, Jan. 18, 2013 /CNW/ - Karmin Exploration Inc. ("Karmin") (TSXV and the Lima Stock Exchange: KAR) announced today that it has
exercised its option to acquire 100% of the right, title and beneficial
interest held by Alberto Aurelio Arias Dávila (the "Vendor") in a mining concession (the "Option Mining Concession") forming a portion of the Cushuro Property located in the department
of La Libertad in the Republic of Peru.
Karmin entered into an option agreement (the "Option Agreement") with the Vendor on November 22, 2011, which granted to Karmin an
irrevocable and exclusive option to purchase from the Vendor 100% (and
not less than 100%) of the right, title and beneficial interest in the
Option Mining Concession. The Option Agreement provided Karmin with
the right to exercise its option to purchase the Option Mining
Concession, at its sole discretion, at any time on or after January 16,
2012 and for a period of one year following such date (the "Option Term"). Karmin and the Vendor also entered into a separate agreement to
lease the Option Mining Concession, which provided Karmin with access
to the Option Mining Concession during the Option Term.
Pursuant to the terms of the Option Agreement, Karmin exercised its
right to acquire the Option Mining Concession by issuing to the Vendor
135,000 common shares in the capital of Karmin. The shares were issued
pursuant to exemptions from the prospectus requirements of applicable
Canadian securities laws. After giving effect to the issuance of these
shares, the Vendor now holds approximately 25% of the issued and
outstanding shares of Karmin.
On February 15, 2012, Karmin acquired 100% of the right, title and
beneficial interest held by the Vendor in two additional mining
concessions (the "Purchased Mining Concessions", together with the Option Mining Concession, the "Cushuro Mining Concessions"), also forming a portion of the Cushuro Property. Karmin shareholders
approved the acquisitions of the Cushuro Mining Concessions in December
2011 by way of written consent.
The Cushuro Mining Concessions are located in the Huamachuco Gold-Mining
District in the sierras of northwestern Peru. The concessions include
a gold-mineralized zone (the "Zona Cushuro") that is similar to zones present in other operating mines in the
district, including Lagunas Norte, La Virgen, La Arena, El Toro and
Santa Rosa. The concessions cover a 25 square kilometre area, span an
elevation range of 3,900 to 4,200 meters, and can be reached in four to
five hours via well-maintained roads from Trujillo (a departmental
capital on the Pacific coast). The area is crossed by a power
transmission line. For more information on the Cushuro Mining
Concessions, please see the news releases of Karmin dated November 22,
2011 and November 14, 2012.
The common shares of Karmin are listed on the TSX Venture Exchange and
the Lima Stock Exchange and trade in both markets under the symbol
"KAR". The principal business of Karmin is to acquire, explore and
develop resource properties.
Karmin owns 30% of the Aripuanã Zinc Project, one of the ten largest
undeveloped zinc projects in the world. The Aripuanã Zinc Project
covers an 820 square kilometre mineralized massive-sulphide district
that includes five areas of mineralization (Ambrex, Arex, Babacu,
Massaranduba and Mocoto) over a 25-kilometre strike length. Votorantim
owns 70% of the Aripuanã zinc project, but is responsible for 100% of
the project costs until the completion of a bankable feasibility study.
Karmin owns 100% of the Aripuanã Gold Project, which encompasses the
gold and silver mineralization associated with near-surface oxidized
portions of numerous massive-sulphide deposits in the
820-square-kilometre Aripuanã Zinc Project in north western Brazil.
Karmin owns 100% of the 25-square-kilometre Cushuro Gold Project located
in the world-class Alto Chicama gold-mining district of northern Peru.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this news release.
SOURCE: Karmin Exploration Inc.
For further information:
Chief Executive Officer
Tel: (416) 367-0369
Chief Financial Officer
Tel: (519) 337-5302