Cyprium Mining Signs Exclusive Agreement to Treat Stockpiles from the Historic Potosi Silver Mine in Santa Eulalia, Mexico
MONTREAL, QUEBEC--(Marketwired - Apr 29, 2015) - Cyprium Mining Corp. ("Cyprium" or the "Company") (TSX VENTURE:CUG)(TSX VENTURE:CUG.DB) is pleased to announce that it has signed an agreement with Minerales Nacionales de Mexico S.A. de C.V. and Minera Potosi Silver S. de R.L. de C.V. (collectively referred to as "Potosi Silver") to evaluate and process on an exclusive basis up to 50,000 tons of stockpiles from the historic Potosi Silver mine located in the well-known mining district of Santa Eulalia in Chihuahua State, Mexico. The Potosi Silver mine was discovered in 1707 and its main commercial operations took place between 1925 and 1991. The mine is located only 42 kilometers from the Aldama plant.
Mr. Andre St Michel, President and CEO of Cyprium stated: "The first phase of this relationship with Potosi Silver is to systematically evaluate the stockpiles from the Potosi Silver mine and to process an initial 1,000 tons at our Aldama plant. Our technical has already started their work with a view of determining exactly how many tons we expect to process out of the 50,000 tons available. We have made plans to ship the first 1,000 tons to our Aldama plant and anticipate to be processing this silver/lead/zinc materialized material in the first week of May." Mr. St Michel added: "This transaction follows the start of the operations announced just last week with 500 tons of material from a mine in Sonora State. While we have make good progress in filling up the current 100 tons per day capacity of the Aldama processing facility over the last week, we are also continuing to work with other small miners in the state of Chihuahua to secure additional sources of mill feed in anticipation of our planned increase in capacity to 200 tons per day."
Mr. Alain Lambert, Chairman of Cyprium provided additional information on the agreement with Potosi Silver: "Under the agreement, Cyprium will purchase the materialized material from Potosi Silver on a shared profit basis. We believe the shared profit approach is attractive to both our clients and Cyprium. This method of purchasing mineralized material minimizes the cash outlay for the company at the front end of the process while providing the small miner with some upside on profits." Mr. Lambert concluded: "After we finalize the initial evaluation of the stockpiles and receive the final technical data on the processing of the first 1,000 tons we will establish exactly how many tons we intend to process. Once we have made that determination, we will pay Potosi Silver an exclusivity payment equal to US $1.00 per ton which will be considered an advance of Potosi Silver's share of the profits. Finally, in order to retain our exclusivity, Cyprium will need to process a minimum of 500 tons per month prior to July 31, 2015 and 1,000 tons per month thereafter."
About Cyprium Mining Corporation
We operate solely in Northern Mexico where our senior management team resides. We only look for projects that have a potential for profitable production in the short-term and a large exploration potential. Cyprium is committed to maximizing the potential of projects by funding exploration programs mainly through cash flows generated by production instead of funding such programs strictly through equity offering thus limiting shareholder dilution. Cyprium prioritizes projects which are easily accessible and close to large urban centers. Cyprium, through its wholly-owned subsidiary Cypriumex S.A. de C.V. provides tolling services to miners located in the state of Chihuahua, Mexico (see October 1st, 2014 news release). Cyprium also owns 51% of Coyame Copper SA de CV ("Coyame Copper"), a Chihuahua, Mexico based mining exploration company and has an option to increase its stake in Coyame Copper to 70% for a consideration of US $1.2 million payable over a period of eighteen months following the exercise of the option. Coyame Copper's Las Cristinas Project consist of four adjacent exploration concessions (Las Cristinas, La Parrita, La Verde and La Lagrimosa) covering 684 hectares. Coyame Copper also owns production assets located outside the town of Coyame, Mexico.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
The geological information of this release was verified by Andre St Michel P.Eng. P.Geo, a Qualified Person.
This news release contains "forward-looking information" (within the meaning of applicable Canadian securities laws) and "forward -looking statements" (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995). Such statements or information are identified with words such as "anticipate", "believe", "expect", "plan", "intend", "potential", "estimate", "propose", "project", "outlook", "foresee" or similar words suggesting future outcomes or statements regarding an outlook. Such statements include, among others, those concerning the Company's anticipated plans for developments of the Company and its mining projects".
Such forward-looking information or statements are based on a number of risks, uncertainties and assumptions which may cause actual results or other expectations to differ materially from those anticipated and which may prove to be incorrect. Assumptions have been made regarding, among other things, management's expectations regarding future growth, plans for and completion of projects by Company's third party relationships, availability of capital, and the necessity to incur capital and other expenditures. Actual results could differ materially due to a number of factors, including, without limitation, operational risks in the completion of Company's anticipated projects, delays or changes in plans with respect to the development of Company's anticipated projects by Company's third party relationships, risks affecting the ability to develop projects, risks inherent in operating in foreign jurisdictions, the ability to attract key personnel, and the inability to raise additional capital. No assurances can be given that the efforts by the Company will be successful. Additional assumptions and risks are set out in detail in the Company's MD&A, available on SEDAR at www.sedar.com.
Although the Company believes that the expectations reflected in the forward-looking information or statements are reasonable, prospective investors in the Company's securities should not place undue reliance on forward-looking statements because the Company can provide no assurance that such expectations will prove to be correct. Forward-looking information and statements contained in this news release are as of the date of this news release and the Company assumes no obligation to update or revise this forward-looking information and statements except as required by law. Investors should note that the Las Cristinas property has no established mineral resources or mineral reserves as defined by NI 43-101. Although Cyprium Mining has made an initial production decision based on historical production records and the results of the recent sampling, a feasibility study of its projects has not been completed and there is no certainty that the proposed operations will be economically or technically viable.
Contact
Cyprium Mining Corp.
Andre St-Michel
President and CEO
(514) 629 7185
astmichel@cypriummining.com
Cyprium Mining Corp.
Alain Lambert
Chairman
(514) 219-7988
alambert@cypriummining.com
www.cypriummining.com