Dec 15 2014
Samco Gold Limited ("Samco Gold" or the "Company") announces that it has entered into a share purchase agreement (the "SPA") with Mantaro Resources Limited ("Mantaro") for the acquisition of all the issued and outstanding shares of Samco Minerals S.A. and Cia Dorita MA S.A.C., Mantaro's wholly-owned Peruvian subsidiaries (collectively the "Mantaro Subsidiaries").
The Mantaro Subsidiaries hold certain exploration and mining concessions over the Dino polymetallic property located in Peru (the "Dino Property"). Subject to meeting certain conditions as described, the acquisition is expected to close within 120 days.
DINO PROPERTY HIGHLIGHTS
- The Dino Property comprises 5,510 hectares of continuous concessions hosted within Pucará Group carbonates with significant potential for CRD‐style mineralisation (carbonate replacement deposits);
- Extensive geophysical, geochemical and geological studies carried out to date, as well as underground and surface exposures, have indicated significant exploration potential for CRD‐style Zn‐Pb‐Ag mineralisation;
- Multiple drill targets delineated by geophysical surveys (>150 km IP and >800km mag) and geochemical studies (>6,500 MMI soil samples), as well as mineralised surface and underground exposures;
- Drill plan for 2015 campaign ready for immediate implementation; environmental permits required for drilling (DIA) already approved;
- Environmental studies for start-up of underground mining operations already initiated;
- Excellent relations with local communities have resulted in the purchase of surface rights at the Dino Mine and securing of land use agreements for exploration;
- Mine and field camp already in development;
- Located approximately 180km east-northeast of Lima with excellent local and regional infrastructure;
- Experienced management and geological team active in Peru since 2009.
The acquisition brings geographical and commodity diversification to Samco Gold's portfolio with the intention of extending both geopolitical and commodity exposure in respect of the Company's projects.
Commenting on the transaction, Charles Koppel, Executive Chairman and CEO of Samco Gold said:
"With the agreement announced today, Samco has taken an important step forward in its strategy of seeking to acquire and develop assets of significant potential. By gaining exposure to Peru as a key mining and zinc producing region, we have also diversified our asset base and provided the Company with enhanced optionality in terms of our exploration, development and potential production activities.
Notwithstanding difficult market conditions, 2014 has been a busy year for the Company. We will continue to seek further opportunities to add value to our quality asset portfolio both through corporate activity and the ongoing exploration and development of our properties in Argentina and Peru."
About Samco Gold
Samco Gold's principal business has been the acquisition, exploration and development of precious metals resource properties in Argentina and the region. The Company's principal mineral property in Argentina is the El Dorado Monserrat ("EDM") epithermal gold project, located in the Deseado Massif region of Santa Cruz Province. With an experienced board and management team including a strong Argentinean complement, the Company's goal remains to become an Argentinean producer of gold and silver through the exploration and development of EDM. Samco Gold also owns a portfolio of other mineral exploration properties in the Deseado Massif, the most notable of which is the Corina property.
By virtue of this transaction, Samco Gold extends its principal business activities into Peru with the intention of becoming a Peruvian producer of zinc, lead and silver through the exploration and development of the Dino Property.
Additional details on the Company are available on SEDAR (www.sedar.com).
Dr. David Patrick, Managing Director of ACA Howe International Limited is a Qualified Person within the meaning of Canadian National Instrument 43-101 who prepared or supervised the preparation of the technical information that forms the basis for the disclosure on the Dino Property and has reviewed and approved the technical content of this release. Samco Gold intends on disseminating and filing an additional news release, which will include additional technical information on the Dino Property, and a NI 43-101 report will be finalized and filed on SEDAR within 45 days of the date of such news release supporting the disclosure therein.
Source: http://www.samcogold.com/