VANCOUVER, Jan. 4 /CNW/ - Focus Ventures Ltd. (TSX-V: FCV.V) is pleased
to announce that it has signed the Definitive Agreement with Peruvian
miner, Compañia de Minas Buenaventura (NYSE: BVN), which has optioned
Focus's 100%-owned Minas Chanca silver property (see Press Release
April 27, 2010).
Under the terms of the Agreement, Buenaventura can earn a 75% interest
in the claims by spending US$3 million in exploration and development
over a period of three and a half years, of which $1 million is
committed to be spent within the first 18 months. The work program
during the option period will include no less than 3,000m of diamond
Once Buenaventura vests its 75%, a joint venture company will be formed
(NEWCO). Buenaventura will have the option to acquire Focus's 25%
participating interest by paying Focus $4.00 /oz Ag based on resources
outlined in a NI 43-101 compliant technical report, or $4 million in
cash, whichever is the greater. If Buenaventura chooses not to purchase
Focus's 25% share of NEWCO, Focus will have the option to have
Buenaventura provide financing, with repayments to be made through
dividends in NEWCO, or alternatively Focus can choose its own
financing. A 2% Net Smelter Royalty will be payable to Focus on future
production, subject to a buy-out clause of $1 million.
David Cass, President of Focus, commented "We are pleased to have
concluded the agreement with Buenaventura, whose operational
capabilities and nearby infrastructure will be significant in advancing
the Minas Chancas project quickly through the exploration phase and if
successful, to production. Should Buenaventura vest its 75% share in
the Project, our 25% interest will be non-dilutable, and unless
purchased outright by cash or based on resources outlined as a result
of exploration, Focus will be financed through to production."
Raul Benavides, Vice President Business Development for Buenaventura,
comments: "Buenaventura is pleased to have Focus as partners at Minas
Chancas and looks forward to our association with the Focus team for
the successful development of the property going forward."
The property comprises 1,200 hectares acquired by Focus in 2009 by
direct staking, and two adjacent claims covering an additional 1,000
hectares subsequently acquired by Buenaventura and included in the
Agreement. The former Ag-Pb-Zn mine is located midway between the
provinces of Oyon and Cajatambo, some 160km north of the Peruvian
capital, Lima, at altitudes of 4,400 - 4,900 m a.s.l. Minas Chanca is
located 65km north of Focus's recently acquired Santa Rosa property
(see Press Release November 30, 2010).
References to mining at Minas Chanca date back to 1712 during Colonial
times. Past mining took place over approximately 300 vertical meters
via a system of galleries, cross-cuts and drives that exploited a
number of veins and splays that cross-cut lower Calipuy andesites and
volcanic breccias. The majority of silver-lead and zinc ore came from
3 principal veins, Candelaria, Tarazca and Santo Toribio, where early
production reportedly yielded grades of 50 to 75 oz Ag/t. Other veins
included the Prescilda, Shirley and Yanacelli veins.
The underground workings are currently inaccessible, and Buenaventura's
work program will test for depth and strike extensions to the mined
veins and explore for new mineralized structures. Work will comprise
access to site, rehabilitation and sampling of underground adits,
tunneling, geological mapping, sampling and drilling.
Any success in delineating future resources at Minas Chanca will have
operational synergies with Buenaventura's existing mining operations
and projects close to the property, notably the Uchucchacua Ag Mine
20km south-east, and the Mallay project, located 10km to the south.
Additional information on the Minas Chanca project can be found on the
Focus website: www.focusventuresltd.com.
About Focus Ventures
Focus Ventures is acquiring advanced, drill-ready projects in Peru.
Backed by an experienced technical team of geologists and consultants,
Focus's strategy is to identify and acquire former producing mines or
un-tested gold and silver properties that show potential to become new
Buenaventura is Peru's largest publicly-traded precious metals company
and operates several mines in Peru. It also owns a 43.65% stake in the
Yanacocha deposit, Latin America's largest gold mine, and a 19.26%
interest in the Cerro Verde copper mine. Buenaventura operates the
following mines in Peru: Orcopampa, Uchucchacua, Antapite, La Zanja
Julcani, Recuperada, Paula and Poracota. In 2009 the company produced
423,000 oz Au and 13MOz Ag from these operations.
ON BEHALF OF THE BOARD
Ralph Rushton, Vice-President, Corporate Development
Contact: Erin Ostrom / Ralph Rushton
Shares Issued: 29.3-million
Neither the TSX Venture Exchange nor the Investment Industry Regulatory
Organization of Canada accepts responsibility for the adequacy or
accuracy of this release.
Some of the statements in this news release contain forward-looking
information that involves inherent risk and uncertainty affecting the
business of Focus Ventures Ltd. Actual results may differ materially
from those currently anticipated in such statement.
SOURCE Focus Ventures Ltd.
For further information:
please call 604-688-5288 or visit our web site www.focusventuresltd.com