Quinto Real Capital Signs Definitive Agreement to Acquire Camarinhas Gold Project in Brazil
TSX VENTURE: QIT
MONTREAL, QUEBEC--(Marketwired - March 7, 2017) - Quinto Real Capital Corporation (TSX VENTURE:QIT) ("Quinto" or the "Company") is pleased to announce the signing of an arm's length option agreement (the "Agreement") with Americas Gold Corporation, SA, Elicio Gomes Lopes and Brasincor Empreendimentos E Participacoes SA, to acquire a 100% interest in the Camarinhas gold project in Brazil, which consists of three mineral-rights concessions that Quinto defines as Camarinhas Central, East and West (the "Properties").
The Properties are located in an area known as Camarinhas, which is situated in the rural area north of Campo Largo, Parana State, Brazil. It is approximately 45 km from Curitiba, the Capital of the State. The Properties, in total, comprise 1,704 hectares. Services and support for mining in this area are excellent.
The Camarinhas area is known for hydrothermal gold-pyrite-quartz veins, which have been prospected and mined for about 400 years. An adjoining property has produced gold for the last 25 years.
Available information on the Properties indicates a significant gold potential; however, much of this information cannot be used to evaluate the Properties and is only of historical interest until it can be confirmed. Assays of available material have been positive and mineralogical studies have detected up to 120-micron gold grains, which are associated with chalcopyrite along pyrite grain boundaries.
Quinto is planning a secure exploration drilling program, using standard Quality Control and Quality Assurance methods, to confirm the potential of the project. It is expected that key aspects of this program will be complete within six months.
Michael Curtis, President and CEO of Quinto, said: "We are excited about the recent turn of events. We have the opportunity to acquire a unique property on a emerging mining district with gold production activities."
Dr. Luisa Moreno, a director of Quinto, added: "We are in the process of expanding our technical team on the ground, with the start of the drilling program. We are also structuring our management team, and we will be making these announcements in the coming weeks as the final stages of the legal due diligence is completed."
In order to earn a 100% interest in the Properties, Quinto will have to fulfill the following terms over a five-year period. During the earn-in period, Quinto will be the project manager.
|Upon signature and within 5 business days of receipt of all required regulatory approvals||-||- Issue 1,500,000 common shares
- Initiate 1,000 m drilling program to be completed within 90 days
|Within three months after the signature||20%||- Submit a NI 43-101 technical report
- Issue 4,000,000 additional common shares
- $50,000 cash payment
|On or prior the first anniversary||40%||- Submit a NI 43-101 resource estimate report
- Issue 5,000,000 additional common shares
- Incur costs of $1,000,000
|On or prior the second anniversary||60%||- Submit a positive preliminary economic assessment report
- Incur additional costs of $2,000,000
|On or prior the third anniversary||80%||- Submit a positive pre-feasibility study
- Incur additional costs of $2,000,000
|On or prior the fifth anniversary||100%||- Submit a feasibility study
- Make the following additional payments:
(a) If the feasibility study determines that the Properties contains reserves of 2,500,000 ounces of gold: pay US$25 million of cash within nine months of the feasibility study and an additional US$25 million in cash or common shares at Quinto's option; or
(b) If the feasibility study determines that the Properties contains reserves under 2,500,000 ounces of gold: pay a pro rata amount of the agreed amounts in (a);
(c) If the feasibility study determines that the Camarinhas Central concession contains reserves over 2,500,000 ounces of gold: pay a pro rata amount increase of the agreed amounts in (a) at the rate of US$20 per ounce.
- Additionally, if an additional 2,500,000 ounces of gold reserves are found on the Camarinhas East and West concessions, Quinto will pay an additional US$50 million in cash or common shares at Quinto's option. The research on these properties must be started within the first year from the date of acquisition of these Properties.
The acquisition is subject to regulatory approval and positive legal due dilligence.
About Quinto Real Capital Corporation
Quinto Real Capital Corporation (TSX VENTURE:QIT) is a Canadian gold exploration company. It owns a 5% interest in the Monster Lake property (IAMGOLD: 50%/TomaGold: 45%) and an option to acquire a 75% interest in the Gwillim, Fancamp and Embry properties, all located close to the Chibougamau mining camp in Quebec, Canada.