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TORONTO, Oct. 25, 2017 /CNW/ - Cautivo Mining Inc. (CSE:CAI) ("Cautivo" or the "Corporation") is pleased to announce that its Peruvian subsidiary, Sociedad Minera San Miguelito S.A.C. ("San Miguelito"), has received the Supreme Decree by which it is enabled to acquire and develop 18 of the 33 existing or pending concessions that were held by Minera Ate S.A.C. ("Minera Ate"). Under Article 71 of the Peruvian Constitution, foreign individuals (including Peruvian-domiciled companies owned ultimately by overseas investors) must obtain permission from the President of the Republic and the Council of Ministers, in the form of a Supreme Decree, in order to hold any type of concession over property located within 50 kilometers of any of Peru's national borders.
Having received these Supreme Decrees, San Miguelito has elected to exercise its right to acquire these 18 concessions, which cover a total area of 13,576 ha, from Minera Ate for the aggregate amount of US$1.2 million. Pursuant to an existing option agreement between San Miguelito and Minera Ate, the amount payable in respect of the acquisition of these concessions will be satisfied entirely through a reduction of the advances made by San Miguelito in respect of these concessions. Accordingly, no cash consideration will be paid to Minera Ate in connection with the acquisition.
As a result of this transaction, San Miguelito now has a 100% interest in 25 of the 43 existing or pending concessions that comprise the Las Lomas Project. The remaining 15 existing or pending concessions held by Minera Ate and an additional 3 existing concessions currently held by a third party, with which Minera Ate holds an outstanding mining option contract, must still receive the Peruvian Government's Supreme Decree before they can be acquired by San Miguelito.
Cautivo is an exploration company focused on acquiring, exploring and, if warranted, developing gold, silver, copper, zinc and lead mineral properties. As noted above, the Las Lomas Project comprises the main asset of the Corporation. The Las Lomas Project consists of 43 existing or pending mining concessions totaling 31,288 ha, located in the Department of Piura in northern Peru, near the Ecuador border.
The Cautivo Shares trade on the Canadian Securities Exchange under the symbol "CAI".
Forward-Looking Information and Statements
This news release contains certain forward-looking information and statements (collectively referred to herein as "Forward-Looking Statements") within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify Forward-Looking Statements.
Forward-Looking Statements are based on a number of expectations or assumptions, which have been used to develop such information and statements but which may prove to be incorrect. Although the Parties believe the expectations and assumptions reflected in such Forward-Looking Statements are reasonable, undue reliance should not be placed on Forward-Looking Statements because the Parties can give no assurance that such expectations and assumptions will prove to be correct. The Forward-Looking Statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Such information and statements, including the assumptions made in respect thereof, involve known and unknown risks, uncertainties and other factors, which may cause actual results or events to differ materially from those anticipated in such Forward-Looking Statements, including, without limitation, (i) those risks listed under the heading "Risk Factors" in Cautivo's final prospectus dated July 10, 2017; and (ii) other risks, which are beyond the control of the Parties. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the Forward-Looking Statements prove incorrect, actual results, performance or achievements could vary materially from those expressed or implied by the Forward-Looking Statements contained in this news release.
The Forward-Looking Statements contained in this news release speak only as of the date of this news release, and the Corporation does not assume any obligation to publicly update or revise any of the included Forward-Looking Statements, whether as a result of new information, future events or otherwise, except as may be expressly required by applicable securities laws.
SOURCE Cautivo Mining Inc.
For further information: Ricardo Arrarte, Chief Executive Officer, + 511 631-8103 (Peru), Email: [email protected]