Rio Cristal Announces Agreement in Principle for Joint Venture

Rio Cristal Resources Corporation (TSX VENTURE:RCZ)(BVL:RCZ) ("Rio Cristal" or
the "Company") announced today that it has reached an agreement in principle
with MMR Exploration Ltd ("MMRE") to form a joint venture wherein MMRE has the
right to earn up to a 70% interest in the Company's Peruvian subsidiary Cerro la
Mina S.A. ("CLM") through the staged expenditure of USD$10 million plus the
completion of a feasibility study on the Company's Bongara zinc project
(Bongara) over 8 years. 


MMRE is a subsidiary of Minmetals Resources Limited ("MMR"), a mid-tier global
resources company that mines, explores and develops base metal projects in
Australia, and around the world. The company is headquartered in Melbourne,
Australia and listed on the Hong Kong Stock Exchange. Its ultimate controlling
shareholder is China Minmetals Corporation.


CLM is exploring the 18,000 hectare Bongara project in northern Peru and the
Company announced a Measured and Indicated zinc resource in February, 2012.
Pursuant to the agreement, MMRE can earn a 30% interest in CLM by incurring $3
million in exploration expenditures on Bongara within 18 months of the date of a
definitive agreement. MMRE can earn an additional 30% interest in CLM by
incurring a further $7 million ($10 million in aggregate) on exploring Bongara
within five years of the date of a definitive agreement. To earn the final 10%
interest in CLM, MMRE must complete a feasibility study on Bongara within a
period of 8 years of the date of a definitive agreement. The agreement is
subject to finalization of a binding agreement and conditions including due
diligence, regulatory approvals, Minmetals Resources Limited board approval, and
any third party consents.


Rio Cristal can maintain a 30% interest in CLM if it contributes its pro rata
share of capital once a feasibility study on Bongara is complete. If the Company
does not contribute its share of capital, it will be diluted to 10% at which
time the Company must either commence contributing its share of capital or MMRE
will loan the necessary funds to be repaid (plus interest at a rate of LIBOR
plus 4%) from future cash flow from the project in the form of dividends from
CLM.


In accordance with the policies of TSX Venture Exchange, the Company intends to
seek shareholder approval of the agreement with MMRE. 


Thomas Findley, President & CEO of Rio Cristal said "We are very pleased to have
come to an agreement in principle with a world class company like MMRE to
accelerate and expand the exploration of our Bongara zinc project. They bring
both financial and technical resources that we need in order to develop a large
project having significant potential for hosting MVT zinc sulfide deposits such
as Bongara."


"The Company's Board of Directors strongly recommends shareholder approval of
the transaction which provides a strong partner and excellent potential for
increased RCR shareholder value. When we finalize the transaction, the Company's
focus will be on both the CLM joint venture project with MMRE and on
identification of new exploration opportunities which we can develop as Rio
Cristal Resources Corp."


An advisory fee in respect of the transaction with MMRE may be payable upon the
exercise by MMRE of the option at each stage. Such fee would be payable by the
Company and be approximately 6% of the amount invested in CLM by MMRE, which may
be made in shares or warrants, subject to acceptance of the TSX Venture
Exchange. 


About Rio Cristal Resources Corporation

Rio Cristal Resources is a Canadian corporation focused on development of the
18,000 hectare Bongara zinc property in northern Peru, which includes four
separate exploration projects. The Company is also actively reviewing other
zinc, gold and copper prospects in Peru.


The Company's shares are listed on the Toronto Stock Exchange, Venture Segment
and the Bolsa de Valores de Lima (Lima Stock Exchange) under the symbol RCZ.


About Minmetals Resources Limited 

Minmetals Resources Limited is a mid-tier global resources company that mines,
explores and develops base metal projects in Australia, and around the world.
The company is headquartered in Melbourne, Australia and listed on the Hong Kong
Stock Exchange under Stock Code: 1208. 


The company is uniquely positioned with an experienced international management
team, public ownership on the Hong Kong stock exchange (28.3%) and support of
its ultimate controlling shareholder China Minmetals Corporation (71.7%).


This news release includes certain "forward-looking statements" under applicable
Canadian securities legislation. All statements other than statements of
historical fact included in this release, including, without limitation,
statements regarding the definitive agreement with MMRE and MMRE's obligations
thereunder, shareholder approval for such agreement, potential exploration
results, future plans and objectives of the Company are forward-looking
statements that involve various risks and uncertainties. There can be no
assurance that such statements will prove to be accurate and actual results and
future results, events and objectives could differ materially from those
anticipated in such statements. Important factors that could cause actual
results to differ materially from Rio Cristal's expectations include the failure
to complete a definitive agreement with MMRE due to one of the conditions
precedent not being met, including board approval of both parties and due
diligence and the rejection by TSX Venture Exchange or the Company's
shareholders of the agreement. 


This news release does not constitute an offer to sell or solicitation of an
offer to sell any securities in the United States. The securities have not been
and will not be registered under the United States Securities Act of 1933, as
amended (the "U.S. Securities Act") or any state securities laws and may not be
offered or sold within the United States or to U.S. Persons unless registered
under the U.S. Securities Act and applicable state securities laws or an
exemption from such registration is available.
(TSXV:RCZ)
과거 데이터 주식 차트
부터 5월(5) 2024 으로 6월(6) 2024