Duran Signs Definitive Agreement with Rio Alto Mining for Minasnioc and Ichuna Properties in Peru
TORONTO, ONTARIO -- (Marketwire) -- 01/25/13 -- Duran Ventures Inc. (TSX VENTURE: DRV)(BVL: DRV) ("Duran" or the "Company") is pleased to announce that it has signed the definitive agreement (the "Agreement") with Rio Alto Mining Limited ("Rio Alto") whereby Duran has granted to Rio Alto options pursuant to which it may earn up to a 70% interest in the Company's Minasnioc Gold-Silver Property ("Minasnioc") and a 65% interest in the Company's Ichuna Copper-Silver Property ("Ichuna").
"I'm very excited to have Rio Alto, an established mining company in Peru, as a partner in the Minasnioc and Ichuna projects" stated Mr. Jeffrey Reeder, CEO and President of Duran. "This reinforces Duran's strategy of introducing strong partners to explore and develop our inventory of properties and provide an underlying stream of option payments".
The Minasnioc property covers 3800 hectares and is located in the Department Huancavelica, approximately 300 kilometres southeast of Lima, Peru. The Minasnioc property has seen previous intensive exploration campaigns by Barrick Gold Corporation ("Barrick") and Compania de Minas Buenaventura S.A.C ("Buenaventura") between 2001 and 2004, which included surface channel sampling and drilling. Duran recently acquired the historical geological and drill data from Barrick.
Under the terms of the Agreement, Rio Alto has the option to acquire a 51% interest in Minasnioc within a three (3) year period by performing all necessary exploration work in order to define a sufficient mineral resource to justify an economic assessment, and making a payment to Duran of $500,000. Rio Alto may earn an additional 19% interest in Minasnioc within the subsequent two (2) year period by completing permitting and preparation of a study required for a production decision, which will trigger a payment to Duran of $500,000.
The Ichuna property is located 120 kilometres northeast of Arequipa in the Department of Moquegua in Southern Peru and adjacent to the gold-silver Chucapaca Project of Gold Fields Limited and Buenaventura. The Chucapaca Project hosts the Canahuire Zone which is located less than 3 kilometres from the southern boundary of the Ichuna Property. The resource on the Canahuire Zone was reported to contain 132.7 million tonnes at 1.4 g/t Au, 10.4 g/t Ag and 0.09% Cu for a total of 7.6 million ounces gold equivalent (source http://goldfields.co.za).
Under the terms of the Agreement, Rio Alto has the option to earn a 65% interest in Ichuna by incurring a total of US$8,000,000 in exploration costs within a four (4) year period, which shall include a drill program of 8,000 metres, of which a minimum of 4,000 metres must be drilled in the first year. In addition, Rio Alto must make a payment to Duran of $500,000 within the four (4) year period in order to complete their earn-in rights.
In order to maintain their Minasnioc and Ichuna property option earn-in rights Rio Alto must also exercise 100% of the warrants included in the private placement financing ("Private Placement") previously announced on October 1, 2012 (see Duran press release on the Company's website at http://duranventuresinc.com/news/PressRelease_RAM_private_placement_September_2012_final.pdf). The Private Placement consisted of five million (5,000,000) units (the "Units") of Duran at a price of Cdn$0.15 per Unit for an aggregate subscription price of Cdn$750,000, with each such Unit comprised of one common share of Duran (the "Common Shares") and two half warrants; the "Series A Warrants" and the "Series B Warrants". Each whole Series A Warrant shall be exercisable to acquire one Common Share at an exercise price of Cdn$0.25 per share until the date that is the earlier of (i) March 28, 2014, and (ii) the date that is thirty (30) days following the date notice is given to Rio Alto that the Common Shares have closed at or above the price of Cdn$0.25 per share for a period of 20 consecutive trading days on the TSX Venture Exchange (the "TSXVE") so long as such period occurs after September 28, 2013. Each whole Series B Warrant shall be exercisable to acquire one Common Share at an exercise price of Cdn$0.35 per share until the date that is the earlier of (i) March 28, 2015, and (ii) the date that is thirty (30) days following the date notice is given to Rio Alto that the Common Shares have closed at or above the price of Cdn$0.35 per share for a period of 20 consecutive trading days on the TSXVE so long as such period occurs after September 28, 2014. In the event that Rio Alto is precluded from exercising the warrants due to trading restrictions imposed pursuant to applicable securities laws or by Duran under any applicable policy respecting restrictions on trading in its securities, the expiry dates of the Series A Warrants and Series B Warrants may be extended for a period of ten (10) business days from the end of any such restricted period (subject to regulatory approvals).
Upon Rio Alto earning the interests in the Minasnioc and Ichuna properties, the parties will form a joint venture in accordance with their respective interests to further develop the properties.
Duran is a Canadian exploration company focused on the exploration and development of porphyry copper, precious metal, and polymetallic deposits in Peru. The Company's principal project is the Aguila Copper-Molybdenum Porphyry Project with related silver-lead-zinc mineralization.
Duran Ventures Inc. is a Canadian resource company listed on the TSX Venture Exchange and the Bolsa de Valores de Lima: Symbol "DRV".
Disclosure Regarding Forward-Looking Statements: This press release contains certain "Forward-Looking Statements" within the meaning of applicable securities legislation. We use words such as "might", "will", "should", "anticipate", "plan", "expect", "believe", "estimate", "forecast" and similar terminology to identify forward looking statements and forward-looking information. Such statements and information are based on assumptions, estimates, opinions and analysis made by management in light of its experience, current conditions and its expectations of future developments as well as other factors which it believes to be reasonable and relevant. Forward-looking statements and information involve known and unknown risks, uncertainties and other factors that may cause our actual results to differ materially from those expressed or implied in the forward-looking statements and information and accordingly, readers should not place undue reliance on such statements and information. Risks and uncertainties that may cause actual results to vary include but are not limited to the speculative nature of mineral exploration and development, including the uncertainty of resource estimates; operational and technical difficulties; the availability to the Company of suitable financing alternatives; fluctuations in copper and molybdenum and other commodity prices; changes to and compliance with applicable laws and regulations, including environmental laws and obtaining requisite permits; political, economic and other risks arising from our Peruvian activities; fluctuations in foreign exchange rates; as well as other risks and uncertainties which are more fully described in our annual and quarterly Management's Discussion and Analysis and in other filings made by us with Canadian securities regulatory authorities and available at www.sedar.com. While the Company believes that the expectations expressed by such forward-looking statements and forward-looking information and the assumptions, estimates, opinions and analysis underlying such expectations are reasonable, there can be no assurance that they will prove to be correct. In evaluating forward-looking statements and information, readers should carefully consider the various factors which could cause actual results or events to differ materially from those expressed or implied in the forward looking statements and forward-looking information.
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 release.
Contacts:
Duran Ventures Inc.
Jeffrey Reeder
(416) 867-1591
info@duranventuresinc.com
www.duranventuresinc.com