TORONTO, Oct. 30 /CNW/ - Alturas Minerals Corporation ("Alturas" or the
"Company") (TSXV: ALT) announces that a contract dispute has arisen between
the Company and Inversiones Sol y C S.A.C. ("Inversiones") regarding the
Company's 2,000 hectare Huilacollo high-sulfidation epithermal gold project
(the "Huilacollo Project") in Southern Peru.
The Huilacollo Project is under option to Alturas from Inversiones
pursuant to an option agreement dated August 25, 2004, as amended. The
agreement is for a term of five years. For the most recent update on the
Huilacollo Project, see the Company's Management Discussion and Analysis for
the three and nine months ended June 30, 2008 (which may be accessed at
www.sedar.com) under the heading "Huilacollo Gold Project, Peru" at page 5.
Under the Agreement, a payment of US$1.2 million was due to be paid to
Inversiones on August 25, 2008. Prior to that date, the Company advised
Inversiones of its request for an extension of this date. Earlier requests for
similar extensions had been agreed to by Inversiones. Negotiations ensued, and
in the third week of August, the Company put forward a final proposal for a
payment of US$200,000 to extend the date. That proposal was orally accepted,
but in a subsequent letter, Inversiones added an additional term - that
notwithstanding the extension, the US$1.2 million was earned and would have to
be paid rather than being a matter at the discretion of the Company.
The Company rejected Inversiones' position and stated that the accepted
extension included the ability of the Company to walk away from the Project,
and not make the US$1.2 million payment. Negotiations continue between the
parties, but Inversiones has now indicated that it intends to commence
arbitration proceedings. The Company denies Inversiones' claim based on the
agreed extension, and has engaged counsel for the Company to vigorously
dispute any claim.
As of the date hereof, no proceedings have been commenced by either
party, and it is premature to determine the timing or potential outcome of any
such proceedings. The claim of Inversiones, taken with current market
conditions, substantially increases concerns regarding the ability of the
Company to raise additional capital and to continue as a going concern. The
Company is undertaking a comprehensive review of budgets and spending in light
of the foregoing.
About Alturas Minerals Corporation
Alturas is a Canadian corporation, and is the parent of Alturas Minerals
S.A. ("Alturas Peru"). Alturas Peru has been actively exploring various
mineral projects in Peru since January 2004. The principal assets of Alturas
are four mineral exploration projects located in southern Peru, being the
Huilacollo Gold Project, the Banos del Indio Gold Project, the Utupara
Copper-Gold Project and the Huajoto Gold-Silver-Zinc Project. In addition,
Alturas Peru has interests in eight other exploration projects in Peru.
Alturas' exploration strategy is focused on the discovery of large epithermal
gold mineralized deposits and copper-gold porphyry/skarn deposits. For further
information, please visit the Company's website at www.alturasminerals.com.
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The TSXV and the BVL do not accept responsibility for the adequacy or
accuracy of this release.
Cautionary Language and Forward Looking Statements
This press release may contain "forward-looking statements", which are
subject to various risks and uncertainties that could cause actual results and
future events to differ materially from those expressed or implied by such
statements. Investors are cautioned that such statements are not guarantees of
future performance and results. Risks and uncertainties about the Company's
business are more fully discussed in the Company's disclosure documents filed
from time to time with the Canadian securities authorities
For further information:
For further information: Miguel Cardozo, President & Chief Executive
Officer, Alturas Minerals Corporation, 161 Bay Street, 27th Floor, Toronto,
Ontario M5J 2S1, Phone: (416) 366-5555 (Toronto), +51 1-475-1700 (Peru),