Rio Cristal Resources Corp. announced today that it has signed a binding Letter of Intent (LOI) to enter into an Option Agreement to acquire the 2,400 hectare Condor early stage gold project in southern Peru. The LOI was entered into with a group of five individuals who hold the rights to the Condor concessions.
The Condor project consists of concessions totaling approximately 2,400 hectares located in the Nasca region of Peru.
The Project is approximately 420 kilometers south of Lima and just 40 kilometers from the Pan-American highway. The Project's altitude varies from an estimated 800 meters to 3,000 meters.
Thomas Findley, President and CEO of Rio Cristal, said, "adding an early stage exploration project like Condor is an important step as we implement our project diversification strategy of acquiring gold and copper properties."
Under the LOI, the Company will pay US$5,000 for the exclusive right to conduct technical and legal due diligence over a 60 day period.
The terms of the LOI call for the Company to acquire a 100% interest in the Condor project through a series of cash and share payments over a four year period totaling US$880,000 (US$20,000 upon signing the Option Agreement) and 1,700,000 Rio Cristal common shares (200,000 shares upon signing the option agreement).
The agreement also grants the owners a 2% net profits interest which may be bought out for US$3,000,000. In addition the Company must spend US$900,000 in exploration activities on the property over the same four year period ($150,000 in the first year). The Agreement is subject to approval by the TSX-Venture Exchange.
Condor represents a quartzite-hosted, epithermal gold system where detailed channel sampling reportedly contains up to 16 meters averaging greater than 6.0 grams per tonne gold and 100 meters averaging greater than 1.0 grams per tonne gold within intensively fractured and oxidized quartzite beds.
Mineralization appears to be controlled by broad structural corridors which represent potential for low-cost open pit mining and heap leach extraction. Due diligence will confirm these results prior to entering into a formal agreement.
Rio Cristal Resources is a Canadian corporation focused on the discovery and further development of gold, copper and zinc deposits in Peru.
The principal asset of RCR is the Charlotte Bongara claim block located in northern Peru within an emerging Mississippi Valley-type zinc district. Additional information can be found on the Company's website.
Publication: Andina - English Newswire
Provider: Andina
September 2, 2009
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