Cautivo Mining Announces Receipt of Supreme Decree for 11 Additional Mining Concessions in the Las Lomas Project & Exercise of Right to Acquire 8 of Them
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TORONTO, Aug. 20, 2018 /CNW/ - Cautivo Mining Inc. (CSE:CAI) ("Cautivo" or the "Corporation") is pleased to announce that its Peruvian subsidiary, Sociedad Minera San Miguelito S.A.C. ("San Miguelito"), has received the Supreme Decree by which it is permitted to acquire and develop 11 of the 32 existing or pending mining concessions that were held either directly by Minera Ate S.A.C. ("Minera Ate") or a third party with which Minera Ate holds an outstanding mining option contract. Under Article 71 of the Peruvian Constitution, foreign individuals (including Peruvian-domiciled companies owned ultimately by overseas investors) must obtain permission from the President of the Republic and the Council of Ministers, in the form of a Supreme Decree, to hold any type of concession over property located within 50 kilometers of any of Peru's national borders.
Having received these Supreme Decrees, San Miguelito exercised its right to acquire from Minera Ate 8 of the aforementioned 11 mining concessions (the "Acquisition"), which cover a total area of 5,169.2 hectares, for the aggregate amount of US$342,400. In regards to the 3 remaining concessions, which cover a total area of 2,000 hectares, Minera Ate has transferred to San Miguelito its interest in the outstanding mining option contract with the third party that holds such concessions (the "Contract Transfer" and together with the Acquisition, the "Transactions"). San Miguelito paid Minera Ate the aggregate amount of US$1,146,200 for the Contract Transfer. Pursuant to an existing option agreement between San Miguelito and Minera Ate, the amount paid in respect of the Transactions was satisfied entirely through a reduction of the advances made by San Miguelito in respect of these concessions. Accordingly, no cash consideration was paid to Minera Ate in connection with the Transactions.
As a result of the Transactions, San Miguelito now has a 100% direct interest in 28 of the 56 existing or pending concessions that comprise the Las Lomas Project and an interest in 7 additional concessions held by third parties with which San Miguelito holds outstanding mining option contracts. Of the remaining 21 existing or pending concessions, 17 are held directly by Minera Ate and an additional 4 existing concessions are currently held by a third party with which Minera Ate has entered into a letter of intent.
Cautivo is an exploration company focused on acquiring, exploring and, if warranted, developing gold, silver, copper, zinc and lead mineral properties. The Las Lomas Project comprises the main asset of the Corporation. The Las Lomas Project consists of 56 existing or pending mining concessions totaling 33,903 hectares, located in the Department of Piura in northern Peru, near the Ecuador border.
The common shares of Cautivo trade on the Canadian Securities Exchange under the symbol "CAI".
Forward-Looking Information and Statements
This news release contains certain forward-looking information and statements (collectively referred to herein as "Forward-Looking Statements") within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify Forward-Looking Statements.
Forward-Looking Statements are based on a number of expectations or assumptions, which have been used to develop such information and statements but which may prove to be incorrect. Although the Corporation believe the expectations and assumptions reflected in such Forward-Looking Statements are reasonable, undue reliance should not be placed on Forward-Looking Statements because Cautivo can give no assurance that such expectations and assumptions will prove to be correct. The Forward-Looking Statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Such information and statements, including the assumptions made in respect thereof, involve known and unknown risks, uncertainties and other factors, which may cause actual results or events to differ materially from those anticipated in such Forward-Looking Statements, including, without limitation, (i) those risks listed under the heading "Risk Factors" in Cautivo's final prospectus dated July 10, 2017; and (ii) other risks, which are beyond the control of the Corporation. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the Forward-Looking Statements prove incorrect, actual results, performance or achievements could vary materially from those expressed or implied by the Forward-Looking Statements contained in this news release.
The Forward-Looking Statements contained in this news release speak only as of the date of this news release, and the Corporation does not assume any obligation to publicly update or revise any of the included Forward-Looking Statements, whether as a result of new information, future events or otherwise, except as may be expressly required by applicable securities laws.