MOUNT PEARL, NL, Oct. 19 /CNW Telbec/ - Cornerstone Capital Resources
Inc. (TSXV-CGP) (F-GWN) (B-GWN) (OTC-CTNXF) today announced that it has agreed
on non-binding commercial terms with respect to the formation of a regional
exploration alliance ("Alliance") with Newmont Ventures Limited ("Newmont") to
explore for a variety of gold deposit types in southern Ecuador.
- The Alliance to cover an area of approximately 1800 km2 in Loja
Province, Southern Ecuador
- Cornerstone controls 600 km2 of concessions in the Alliance Area of
- Alliance funding to include private placement in Cornerstone by Newmont
- Up to $4 million exploration expenditures in two stages over 6 years
anticipated if Newmont elects to earn-in
- Earn-in/Joint Venture commercial terms pre-established
- Cornerstone to operate initial phase of program
Since inception of the Ecuador initiative in 2005, Cornerstone has
compiled a significant geological and geochemical database for Ecuador and
through in-house regional target generation has identified the Macara project
area as highly prospective for a variety of gold exploration concepts.
Cornerstone will utilize this comprehensive regional experience to prioritize
targets and to manage and operate the initial exploration program on behalf of
the Alliance. Cornerstone will have access to Newmont's proprietary
exploration technologies, including discovery-proven ultra-low detection
geochemical and geophysical techniques, as well as the specialist technical
expertise of the world's second largest gold producer.
The full terms of the proposed Alliance including commercial terms of the
Earn-in Joint Venture option will be announced upon final approval by the
Technical Committee of the initial program and budget, and approval and
execution of the definitive agreement.
Regional Exploration Alliance
The proposed Alliance will cover an area of approximately 1800 km2
encompassing Cornerstone's Macara project area, where Cornerstone holds or has
applications pending for 600 km2 of mineral concessions. View map at
Rinconada concession, which is within the Macara project area, as well as
rights to a regional geochemical database, were acquired in 2005 as part of
Cornerstone's initial acquisition from Sierra Minera SA (Sierramin), a private
Ecuadorian mining and exploration group owned by Mr Allen Brown Hidalgo, under
an agreement that gives Cornerstone Ecuador SA the right to acquire a 100%
interest in it and several other mineral projects.
Newmont will not, by virtue of its participation in the Alliance, earn
any interest in any existing Cornerstone properties. However, it will have the
right to earn an interest in the Cornerstone properties within the project AOI
through a separate earn-in and joint venture option agreement with
pre-established commercial terms.
Terms of the Alliance include expenditures of up to $4.0 million in two
exploration phases. Newmont shall complete a Private Placement of US$1 million
for units of Cornerstone at a per unit price equal to the maximum of 30, 60,
90 or 180 days TSX Venture Exchange trading volume weighted average share
price plus 20%. Full details will be announced upon final approval and
execution of the definitive agreement.
"We are extremely pleased with the prospect of entering into a long term
alliance with a company of Newmont's global expertise" stated Glen H. McKay,
Cornerstone's President & CEO. "It is a considerable vote of confidence that
Newmont has chosen Cornerstone as a strategic partner and should give
shareholders confidence in the Company's ability to create mining
opportunities of interest to major companies. The Alliance will also enable
Cornerstone to leverage its exploration assets and focus on new opportunities,
some of which it hopes to be in a position to announce in the near future."
This press release was prepared by Mike Basha, PEng, PGeo, Cornerstone's
Vice President Exploration and a Qualified Person in accordance with National
About Cornerstone Capital Resources Inc.
Cornerstone is currently exploring projects in Canada and Ecuador. It is
actively evaluating new gold, copper, uranium and nickel projects, while
continuing to maintain an ongoing pipeline of prospects. Ten of the Company's
thirty four projects are currently under joint venture agreements and ongoing
negotiations may result in new agreements in the near future.
Cornerstone Capital Resources Inc. is a mineral exploration company with
a strong technical team that has proven its ability to identify, acquire and
advance properties of merit. The company's business model is based on
generating exploration projects whose subsequent development is funded
primarily through joint venture partnerships. Cornerstone's current and past
joint venture partners include Agnico Eagle, Celtic, Cash Minerals, Candente,
Coastport, Cogitore, Falconbridge, Inmet, Kermode, Mountain Lake, Moydow,
Newmont, Noranda, Phelps Dodge, and Thundermin.
On Behalf of the Board,
Glen H. McKay
President & CEO
The common shares of the Company are currently listed on the TSXV in
Canada (symbol CGP), the OTC in the USA (symbol CTNXF) and the Frankfurt Stock
Exchange (symbol GWN)
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
For further information:
For further information: available on the Cornerstone Web site at
www.cornerstoneresources.com; via e-mail at email@example.com; or
toll free at 1-877-277-8377; Renmark Financial Communications Inc.: Tina
Cameron, firstname.lastname@example.org; Maurice Dagenais,
email@example.com, (514) 939-3989, Fax: (514) 939-3717,