Sinchao Metals Conducts a Review of Its Property Ownership
TORONTO, ONTARIO -- (Marketwire) -- 02/07/11 -- The Board of Directors of Sinchao Metals Corp. ('Sinchao' or the 'Company') (TSX VENTURE: SMZ) announces that during a recent review of the Company's properties it has become apparent that four of the property claims comprising the Sinchao Project, which were the subject of a title opinion rendered at the time of the Company's formation in 2006, were not properly registered by the former owner, a subsidiary of Andean American Gold Corp. As a result of this property review, Sinchao has determined that it does not have valid ownership of the properties in question and the Company is taking immediate steps to remedy the deficiencies in title, however, at this early stage there are no assurances that these steps will be successful.
In addition to the four properties mentioned above, the Company has also determined that six other properties believed to have been acquired at the time of the Company's formation had previously lapsed and thus are not held by the Company. These properties are not material to the Company's operations.
'The management and board of Sinchao Metals are taking immediate steps to correct the record of ownership of the first four properties mentioned above in the mining registry. In addition, a full assessment of the impact of these discrepancies in property titles on the Sinchao Project is underway and further information will be provided once it is available,' said David Rae, President and CEO of Sinchao Metals.
For further information, please visit the Company's website at www.sinchaometals.com.
About Sinchao
Sinchao Metals Corp. is focused on the exploration and development of the Sinchao Gold-Silver-Copper property, located in Cajamarca province in Northern Peru, 30 kilometers from Yanacocha, the largest gold mine in South America. The company is dedicated to creating value for its shareholders by pursuing growth, expansion and enhancement of the Sinchao property.
On behalf of Sinchao Metals Corp.,
David Rae, CEO
This news release may contain forward-looking information within the meaning of the Securities Act (Ontario) ('forward-looking statements'). Such forward-looking statements may include the Company's plans for its mineral projects, the overall economic potential of its properties, the availability of adequate financing and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements expressed or implied by such forward-looking statements to be materially different. Such factors include, among others, risks and uncertainties relating to potential political risks involving the Company's operations in a foreign jurisdiction, uncertainty of production and costs estimates and the potential for unexpected costs and expenses, physical risks inherent in mining operations, currency fluctuations, fluctuations in the price of gold and other metals, completion of economic evaluations, changes in project parameters as plans continue to be refined, the inability or failure to obtain adequate financing on a timely basis, and other risks and uncertainties, including those described in the Company's Financial Statements, Management Discussion and Analysis and Material Change Reports filed with the Canadian Securities Administrators and available at www.sedar.com.
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.
Contacts:
Sinchao Metals Corp.
David Rae
CEO
(416) 368-9500
Sinchao Metals Corp.
(604) 681-6186 or Toll Free: 1-888-356-4784
(604) 681-3652 (FAX)
investors@sinchaometals.com
www.sinchaometals.com