VANCOUVER, March 1, 2019 /CNW/ - SALAZAR RESOURCES LIMITED (TSXV: SRL) (Frankfurt: CCG.F) ("Salazar" or the "Company") is pleased to provide the following corporate update:
- Focus on 100%-owned projects and then partner with mid-tier or major mining companies
- Sale of 3.8 million Adventus shares boosts cash position to CDN$5.1 million
- Third drill rig in Ecuador ready for contract service through its stand-alone drilling subsidiary
In 2019 the Company will refocus on advancing its 100%-owned projects and then seek partnership with mid-tier or major mining companies contingent on initial exploration results:
- At the Rumiñahui copper-gold porphyry community liaison is underway in preparation to drill at the property in H2 2019. Rumiñahui is a drill-ready target that lies on-trend from Llurimagua and Cascabel
- At the Macara Mina-Bonanza licences in southern Ecuador fieldwork (mapping, trenching, sampling) and permitting is underway with a view to drilling during 2019 targeting VMS and copper-gold porphyry deposits
- Preparations for fieldwork (mapping, trenching, and sampling) are underway on Alisales licence area in southern Colombia, targeting vein gold and copper-gold porphyry systems
Healthy Cash Position
The Company received approximately CDN$3.2 million from the sale of 3.8 million Adventus Mining Corporation ("Adventus") shares. On September 30, 2018, the Company had cash balance of approximately CDN$2.4 million, and has experienced positive net cash flow since then through advance royalty payments, management fees and drilling contracts. The current corporate cash position is approximately CDN$5.1 million.
Under the terms of the Joint Venture with Adventus on Curipamba, Salazar is fully-carried on a 25% stake in the project until production. The Company also receives advance payments of US$250,000 per annum until 2022; and exploration management fees which are the greater of CDN$350,000 per annum or 10% of Project expenditure. Under the terms of the Exploration Alliance with Adventus and the elected projects Pijili and Santiago, Salazar is fully-carried on a 20% stake in the project until a construction decision is made, a 10% management fee will also apply for project expenditures under this alliance.
Salazar Drilling Services Subsidiary receives Third Drill Rig
A third drill rig has cleared customs in Ecuador and is registered to Perforaciones Andesdrill S.A, a stand-alone subsidiary of Company. At this time the Company has three drill rigs to meet its drilling objectives, whether on properties that are wholly-owned by Salazar Resources or under JV or within Alliance. In addition, the rigs can service third parties when available and are a source of income for the Company.
Salazar Resources continues to work closely with Adventus, both on the Curipamba joint-venture and the Exploration Alliance.
Fredy Salazar, CEO of Salazar Resources commented, "As the Curipamba deposit advances towards a production decision and we have a valuable income stream from drill rigs, advance payments and fees, we are ready to go back to our core expertise of discovering deposits in our home area. We are, of course, delighted to be working with Adventus on Curipamba, Pijili, and Santiago.
We can add significant value for shareholders with our balance sheet strength, in-house expertise and the ability to drill at cost on any new discoveries on our wholly-owned properties. In particular, I am keen to drill Rumiñahui as we first mapped a high grade gold-copper zone there 20 years ago."
About Salazar Resources Limited
Salazar Resources Ltd. is a publicly listed (TSXV: SRL) (Frankfurt: CCG) mineral resource company engaged in the exploration and development of mineral deposits in Ecuador. The company has a proven Ecuadorian discovery team led by ex-head of Newmont Ecuador, Fredy Salazar; a team of 40 people including 15 geologists; two drill rigs and an unrivalled Ecuadorian 'grass roots' network. The Salazar team has been involved with many discoveries in Ecuador, including Aurelian's Fruta Del Norte discovery, the Mozo deposit, ex-Newmont's Cangrejos Project and International Minerals' Rio Blanco; and Gaby Deposit.
Salazar Resources aspires to be Ecuador's leading project generator with the right partners at the right time making the company self-funding.
Salazar Resources has a joint venture with Adventus on the Curipamba VMS discovery, whereby Adventus can earn 75% of the project by funding exploration and development expenditures of US$25 million before 2024. A feasibility study is expected to be completed during 2020, after which Adventus is required to fund 100% of the development and construction expenditures to commercial production. In addition, Salazar Resources has a funded exploration alliance with Adventus on two other projects, Pijili and Santiago, within a defined Area of Interest.
Salazar Resources is advancing its 100% owned Rumiñahui, Macara Mina, Bonanza and Tingo projects with the aim of making Ecuador's next significant copper-gold discovery.
ON BEHALF OF THE BOARD OF SALAZAR RESOURCES LIMITED
President & CEO
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 news release.
This press release contains "forward-looking information" within the meaning of applicable Canadian securities laws. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, identified by words or phrases such as "believes", "anticipates", "expects", "is expected", "scheduled", "estimates", "pending", "intends", "plans", "forecasts", "targets", or "hopes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "will", "should" "might", "will be taken", or "occur" and similar expressions) are not statements of historical fact and may be forward-looking information.
Forward-looking information herein includes, but is not limited to, statements that address activities, events or developments that Salazar expect or anticipate will or may occur in the future, such as the expected timing of the feasibility study for the Curipamba VMS discovery. Although Salazar has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Salazar does not undertake to update any forward-looking information except in accordance with applicable securities laws.
SOURCE Salazar Resources Limited
For further information: Fredy Salazar, Salazar Resources (Chief Executive Officer), [email protected], Tel: +593 (0) 99 733 6152; Merlin Marr-Johnson, Salazar Resources (VP Corporate Development), [email protected], Tel: +44 (0) 7803 712 280; Salazar Resources, Investor Relations, [email protected]