Update on Sinchao Metals Property Ownership
TORONTO, ONTARIO -- (Marketwire) -- 04/20/11 -- The Board of Directors of Sinchao Metals Corp. ('Sinchao' or the 'Company') (TSX VENTURE: SMZ) reports that, further to the announcement made on February 7, 2011, regarding the ownership status of four of the property claims comprising the Sinchao Project, it has determined that title to the claims were not properly transferred to a subsidiary of Andean American Gold Corp. ('Andean'), the party that purported to transfer the claims to Sinchao. As a result neither Andean nor Sinchao holds any proprietary interest in the claims, which claims contain approximately 40% of the inferred resource previously disclosed by the Company. The Company has been striving to reach an agreement with the parties that Andean originally dealt with in order to remedy the deficiencies in title however it has been unable to reach such an agreement. The Company is therefore not optimistic that it will be able to remedy the deficiencies in title, and will make the necessary adjustments to its financial statements to reflect the write down of these four properties.
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. For further information call (604) 681-6186 or toll free: 1-888-356-4784.
On behalf of Sinchao Metals Corp.,
David Rae, Chief Executive Officer
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
Chief Executive Officer
416 368 9500
investors@sinchaometals.com
www.sinchaometals.com