Trading Symbol: CCY
VANCOUVER, July 11, 2012 /CNW/ - Catalyst Copper Corp. (the "Company" or "Catalyst") advised that an initial draft of the Preliminary Economic Assessment (PEA) on the La Verde copper porphyry deposit located in Michoacan State, Mexico initiated in early May 2012 by AMC Mining Consultants Ltd. ("AMC") of Vancouver was delivered to management at the end of June. Management and its financial advisors, Endeavour Financial Limited (of both Vancouver and London), have now completed their review and provided comments to AMC. Subject to final review, it is expected that report will be publicly released later this month.
About La Verde
La Verde is located in Michoacan state, Mexico, in an area with excellent infrastructure. Power, rail and water all cross the property. Lazaro Cardenas, Mexico's third largest port on the coast of the Pacific Ocean is 180 km from the site. Significant upside potential remains for the two known zones of porphyry type copper, gold and molybdenum mineralization as the 2010 drill program has shown both deposits remain open to depth and along strike.
The Company's interest in La Verde property is held under an option agreement with a Mexican subsidiary of Teck Resources Limited (Teck) whereby Catalyst's 100% owned Mexican subsidiary, Minera Hill 29, may earn a 60% interest in La Verde by making US$10,000,000 in exploration expenditures (including 30,000 meters of drilling and 200 kilometers of IP) by December 31, 2012. Upon Catalyst earning a 60% interest, Teck has the option to increase its interest to 60% by incurring aggregate expenditures equal to two times the amount spent by Catalyst. Should Teck fail to exercise its option to earn a 60% interest, Catalyst has the right, but not the obligation, to acquire a 100% interest in La Verde by paying to Teck US$20 million. The property is subject to an underlying 0.5% NSR.
ON BEHALF OF THE BOARD OF DIRECTORS OF
CATALYST COPPER CORP.
"John W. Greenslade
JOHN GREENSLADE, PRESIDENT & CEO
Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of the Company, including, but not limited to, risks associated with mineral exploration and mining activities, the impact of general economic conditions, industry conditions, dependence upon regulatory approvals, and the uncertainty of obtaining additional financing. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Neither 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.
For further information:
Corporate Communications Officer: Denby Greenslade (604) 638-5900