Toronto, April 13, 2023 /CNW/- Minsud Resources Corp. (TSX-V:MSR) (“Minsud” or “company“), in addition to our press release, November 4, 2019South32 Aluminum (Holdings) Pty Ltd. (“South 32“) a wholly owned subsidiary of South32 Limited exercised its earn-in rights (“Acquisition right“) to acquire 50.1% ownership of Minella Sud Argentina SA (“MSA“), Minsud Indirect Argentinian Subsidiary that owns and operates the flagship Chita valley project.
according to the terms of the dated earn-in agreement November 1, 2019corrected (“Earn-in contract“) Between South32 and Minsud, South32 will make an initial capital contribution to MSA at least 14 million Canadian dollars (“South32 initial capital contributionFour years to fund the MSA’s exploration program. Within three years he advanced South32’s initial capital contribution and exercised his earn-in rights pursuant to an earn-in agreement where he acquired 50.1. % of MSAs.
South32 completes acquisition of 50.1% stake in MSA (“completion“) shall take place on the earlier of (i) the completion of the Fourth Annual Exploration Program and (ii). February 14, 2024.
At the time of completion, Minsud Argentina Inc. (“dance“), South32, a wholly-owned subsidiary of the Company, will enter into a shareholder agreement to govern the management and operations of MSA.”Shareholder agreement“). Until completed, MAI shall continue to manage and operate the MSA and, therefore, the Chita Valley Project.
As part of exercising the Earn-In Rights, the parties to the Earn-In Agreement have agreed to certain amendments to the Earn-In Agreement and the Shareholder Agreement. This includes:
- South32’s exercise of its earn-in rights will be confirmed and other optional earn-in rights in favor of South32 related to the funding of the Pre-Feasibility Study and Bankable Feasibility Study will be eliminated.
- Prior to closing, MAI shall have the right to elect whether South32’s acquisition of its 50.1% stake in MSA will be effected by:
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(i) South32’s offer of MSA shares taking into account South32’s initial capital contribution (“Cash-in option“); again |
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(ii) a combined offer of 10% of MSA shares in combination with the sale of 40.1% of MSA shares from MAI to South32 (“cash out option”). |
- Previously, the Earn-In Agreement provided that upon exercise of the Earn-In Rights, South32 would pay: 14 million Canadian dollars to MAI (“transfer fee“) This is in addition to South32’s initial capital contribution. Amendments to the Earn-In Agreement provide for:
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(i) South32 is in its fourth year of exploration programme, of which 2.6 million Canadian dollars 49.9% of the C$9.1 million fourth year exploration program (already funded) will be funded by MAI with this amount deducted from the transfer pricing. |
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(ii) If MAI elects the cash-out option, South32 shall pay MAI the balance of the transfer price for a period of twenty-four (24) months from the date the shareholder agreement was signed upon completion. If MAI reinvests the balance of the transfer price into his approved MSA program and budget, his 49.9% share of MAI in the MSA shall not be diluted.and |
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(iii) If MAI elects the cash-in option, MAI will continue to invest in approved programs and budgets until the amount of South32’s initial capital contribution plus the amount contributed and funded by South32 in respect of the approved MSA. is under no obligation to contribute any amount to South32’s program and budget after the initial capital contribution is equivalent to C$42 million. |
Ramiro MassaMinsud’s President and CEO said:Over the past three years, Minsud has faced the challenge of meeting the high operating and exploration standards of a global mining company. This challenge comes with the greatest opportunity to explore our Chita Valley project. Fortunately, we were able to deliver high-quality exploratory results along with significant new discoveries at the Chinchillones target, while respecting the environment and community.We are very proud to move this partnership forward with South32 I would like to congratulate our team, our board and our investors who have always believed in us and the potential of the Chita Valley Project. “
About the Chita Valley Project in San Juan:
The Chita Valley Project is a large-scale exploration-stage porphyry system with classical alteration features, extensive porphyry-style Cu-Mo-Au and polymetallic Ag-Pb-Zn It is hosted by phreatic breccias and associated gold- and silver-bearing polymetallic veins of intermediate sulfide composition that were fitted to the lithcaps of the Chita outcrop porphyry system and the Chinchirones porphyry system.San Juan State Argentina It has a strong mining sector and recognizes the significant economic benefits of responsible development of its substantial Mineral Resources Fund.
About Minsud Resources Corp.
Minsud is a mineral exploration company focused on exploration of the flagship Chita Valley Cu-Mo-Au-Ag-Pb-Zn project in San Juan State. ArgentinaThe Company also holds a 100% owned portfolio of selected early stage prospects comprising 6,000 hectares State of Santa Cruz, Argentina.
almost South 32
South32 is a globally diversified mining and metals company. The company’s purpose is to make a difference by exploiting natural resources and improving the lives of current and future generations. South32 is trusted by its owners and partners to realize the potential of their resources. South32 offers commodities such as bauxite, alumina, aluminum, copper, silver, lead, zinc, nickel, coking coal, manganese, Australia, South Africa and south americaWith a focus on expanding base metals exposure, South32 has two development options. North America Several partnerships with junior explorers around the world.
Cautionary note regarding forward-looking information:
This news release contains certain information that may constitute forward-looking information under applicable Canadian securities laws. Forward-looking information includes, but is not limited to, statements regarding strategic plans, spending commitments, future operations, exploration results, anticipated financial results, future work programs, capital expenditures and objectives. not. Forward-looking information, while believed to be reasonable, involves known and unknown risks, uncertainties and causes that actual results or future events could differ materially from those expressed or implied. It is necessarily based on numerous estimates and assumptions that are influenced by other factors. Such forward-looking information may include, but is not limited to: currency market fluctuations (Canadian dollar, Argentina pesos, and US dollars); changes in national and local governments, legislation, taxation, administration, regulation, and political or economic developments Canada and Argentina or any other country in which we may do business in the future. operational or technical issues related to exploration and development activities; Risks and hazards associated with mineral exploration and development operations, including environmental hazards or occupational injuries. risks associated with the creditworthiness or financial condition of our suppliers and other parties with whom we do business;the existence of laws and regulations, including those currently enacted, that may impose restrictions on mining; ArgentinaEmployee Relations; Community Relations and Claims by the Community. Increased availability and costs associated with operational inputs and labor. The speculative nature of mineral exploration and development, including the risk of obtaining necessary licenses, permits and approvals from governmental authorities. Business opportunities presented to us or that we may pursue. Difficulties in challenging or maintaining company ownership. Risks to our ability to raise funds.and factors identified under “Risk Factors” in our filings April 27, 2011There can be no assurance that such information will prove to be accurate, as actual results or future events could differ materially from those projected by such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information contained in this news release is provided as of the date of this release and is based on information and opinions available to management as of the date of this release. We disclaim any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
Neither TSX Venture Exchange nor its regulated service providers (as those terms are defined in the TSX Venture Exchange Policy) are responsible for the adequacy or accuracy of this release.
