Retransmission: Condor Options its Cristal Project in Northern Chile
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 10/09/12 -- Condor Resources Inc. ("Condor" or the "Company") (TSX VENTURE: CN) is pleased to announce that its Chilean subsidiary, Minera Condor Limitada, has completed a definitive agreement (the "Agreement") with BHP Billiton regarding Condor's 46 sq km Cristal project in northern Chile. Cristal is near the Peruvian border and is located along the West Fissure fault system, host to the majority of Chile's large porphyry copper deposits, including the nearby Collahuasi, Ujina and Quebrada Blanca porphyry copper mines.
Under the Agreement, BHP Billiton have an exclusive option to earn 65% ownership of a joint stock company created to hold the Cristal concessions by completing cumulative exploration expenditures of US$18.0 million over four years, with defined minimum annual work expenditures. The Agreement stipulates a mandatory first year work commitment of US$500,000, which includes an initial cash payment of US$60,000.
BHP Billiton have the option to extend the initial earn-in period by one year by making a one time cash payment of US$300,000.
Upon earning their initial 65% interest, BHP Billiton have the additional option to increase their ownership in the joint stock company to 75%. In order to exercise the second option, BHP Billiton are required to complete a further US$7.0 million in exploration at Cristal (for a cumulative exploration expenditure of US$25.0 million) within two years of acquiring their 65% ownership.
BHP Billiton, at their option, may satisfy any or all of the US$25.0 million exploration expenditure commitments by making cash payments to Minera Condor Limitada in lieu thereof.
Patrick Burns, President and CEO of Condor said, "We are very pleased to conclude this Agreement with BHP Billiton, and are delighted that they will be committing their significant exploration, development and operating expertise to Cristal. We have always believed in the potential of this project, and we feel this Agreement validates our belief."
Condor Resources Inc. was incorporated in 2003 by field exploration specialists focused on the generation of precious and base metals projects in South America, where management has extensive experience and a proven track record of discovery. The Company's long term objective is the discovery of a major new precious/base metals deposit and its business plan offers shareholders access to an exciting portfolio of fifteen properties in Peru and Chile, each offering a unique path to discovery.
ON BEHALF OF THE BOARD
Patrick J. Burns, President & Chief Executive Officer
Cautionary Statement Regarding Forward-Looking Information: All statements, trend analysis and other information contained in this press release relative to markets about anticipated future events or results constitute forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions. Forward-looking statements are subject to business and economic risks and uncertainties and other factors that could cause actual results of operations to differ materially from those contained in the forward-looking statements. Forward-looking statements are based on estimates and opinions of management at the date the statements are made. The Corporation does not undertake any obligation to update forward-looking statements even if circumstances or management's estimates or opinions should change. Investors should not place undue reliance on forward-looking statements.
Neither the 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 news release.
Contacts:
Condor Resources Inc.
Patrick J. Burns
President & Chief Executive Officer
1-866-642-5707
info@condorresources.com
www.condorresources.com