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VANCOUVER, Nov. 26, 2012 /CNW/ - Ecuador Gold & Copper Corp. (TSX-V: EGX) is pleased to announce that its Ecuador subsidiary, Condormining Corporation S.A. ("Condormining") has entered into a shareholders agreement (the "Shareholders Agreement"), dated effective November 2, 2012, with Minera Guang Shou Ecuador S.A ("Guangshou Ecuador") to form a joint venture (the "Chinapintza JV") for exploration development of the Chinapintza deposit at its Condor Gold Project in southeast Ecuador.
The Shareholders Agreement supersedes and replaces the letter of intent, which was announced on September 5, 2012.
Under the terms of the Shareholders Agreement, Condormining and Guangshou Ecuador plan to proceed with exploration development (including an underground exploration program) of up to 300 tonnes per day of gold mineral extraction at the Chinapintza deposit pursuant to the "small-scale mining regime" under Ecuador law, which limits such exploration development to 300 tonnes per day of gold mineral extraction. All legal and environmental requirements will be completed in accordance with Ecuadorian laws and regulations. The exploration development will involve underground exploration drilling, sampling and mapping and the underground gold mineral extraction operations with gold processing and tailings disposal facilities.
Pursuant to the terms of the Shareholders Agreement JV, Condormining will have a 30% interest in the Chinapintza JV and Guangshou Ecuador will have a 70% interest in the Chinapintza JV and Guangshou Ecuador will be responsible for supplying all the funds for the construction and development of the contemplated development operations for the Chinapintza JV.
The Company believes the Chinapintza JV will create numerous employment and development opportunities in the southeast Ecuador region surrounding the proposed gold exploration development operations.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Ecuador Gold and Copper Corp.
For further information:
Vice-President, Corporate Development
Telephone: (604) 569-0721