Click here to close now.

SYS-CON MEDIA Authors: VictorOps Blog, Tim Hinds, Mike Kavis, Peter Silva, Glenn Rossman

News Feed Item

Alturas Signs Mining Agreement on Its Copper-Zinc-Gold Callejones Project in Northern Peru and Enters Into an Agreement for a US$100,000 Convertible Loan

TORONTO, ONTARIO -- (Marketwired) -- 05/26/14 -- Alturas Minerals Corp. (the "Company") (TSX VENTURE:ALT)(LMA:ALT) is pleased to announce that its 100% Peruvian subsidiary Alturas Minerals S.A. ("Alturas") has entered into an agreement (the "Option Agreement") on its 100% owned 2,000 hectare Callejones mining concessions (the "Concessions") located in northern Peru and into an agreement for a US$100,000 convertible loan ("Loan Contract") with the Peruvian company Andes Generating Corporation S.A.C. ("Ancorp").

Miguel Cardozo, President & CEO of Alturas commented that "The Callejones deal is a positive development for Alturas and together with the convertible loan contract secures the disposition of sufficient cash to maintain the validity of its mining licenses in Peru and Chile. At the same time, creates a strategic relationship with a prestigious investment company in Peru that has expressed its interest in supporting the company in its corporative and financial development. Alturas remains very optimistic with respect to the mineral potential of its projects and is evaluating alternative plans for exploration.

Alturas is currently having conversations with various mining companies and private investors that are strongly interested in a joint venture partnership to develop these and other projects from our high-quality property portfolio in Peru and Chile."

Option Agreement

Under the 5-year Option Agreement, Ancorp can earn a 100% interest in the project by incurring a minimum of US$ 200,000 on exploration expenditures in the first 3 years and by additionally making staged yearly cash payments to Alturas totaling up to US$ 0.5 million. A first payment of US$50,000 was received on May 16th, 2014 on signing of the Public Deed of the option agreement. The Option Agreement also stipulates that once Ancorp exercises the option to acquire the Property, Alturas becomes entitled to a royalty payment on all minerals extracted from the Property, equivalent to 0.3% of the net smelting return ("NSR"). Furthermore, if Ancorp decide to transfer the property to a third party, Alturas will be entitled to 30% of all the net benefits obtained by Ancorp from that transaction.

Loan Contract

On May 16th, 2014, simultaneously with the execution of the Option Agreement, a loan agreement ("Loan Contract") was also signed by the parties whereby Alturas received a US$100,000 loan, payable any time before 12 months. The loan is convertible into Alturas common shares at the option of Ancorp and carries an annual interest rate of 15%. The conversion price for the principal amount of the loan has been set at $0.02 per share. In addition, Ancorp has been granted 2,000,000 warrants exercisable at $0.02 per share for a period of one year. The conversion price and the exercise price on the warrants are being granted based on a waiver from the pricing rules of the TSX Venture Exchange. The loan cannot be converted or the warrants exercised until the Company has completed a consolidation unless the conversion price and warrant exercise price are increased to $0.05. At its annual meeting on May 14, 2014, shareholders overwhelmingly granted approval to consolidate the common shares. Alturas is in the process of implementing the consolidation subject to finalizing the consolidation ratio which will be between 1 post consolidated share for each 10 pre-consolidation shares and 1 post-consolidation share for each 3 pre-consolidation shares.

In addition, the Loan Contract provides that if Alturas is unable to repay the loan and Ancorp elects not to convert the loan, Ancorp can reduce its option payments above by US$2 for every $US1 not repaid. Ancorp has no other recourse under the Loan Contract other than to convert or reduce its obligations under the Option Agreement.

This transaction remains subject to regulatory and TSX-V approvals.

About the Callejones Project

The Callejones Property consist of two mining concessions totaling 2,000 hectares, located 400 kilometers NNW of Lima in the Department of La Libertad, northern Peru, and lying in the coastal hills at around 500 meters altitude above sea level. The Callejones Project is located within the coastal volcanogenic massive sulphide (VMS) belt of northern Peru, which can be traced for over 1,500 kilometers in a NNW-SSE direction. The belt is characterized by a marine volcano-sedimentary sequence of mid-Cretaceous age, hosting a number of clustered, and in some cases very large mineral deposits, like the Tambogrande project.

Prior to Alturas, the Australian company Pasminco (formerly Savage) completed extensive exploration work there, completing geological mapping, stream sediment sampling, trench sampling and diamond drilling in 1997-98. During 2001, the Canadian junior company Bear Creek Mining later carried out a limited RC drilling program on the property, targeted on the earlier work completed by Pasminco. Total historical expenditure is estimated to be approximately US$1.5.

Pasminco collected 3,384 rock geochemical samples within Alturas' present tenure and the results confirmed significantly elevated values of gold, silver, copper, zinc, lead and molybdenum, as well as iron. In particular, gold and silver are elevated to potentially economic values in a large number of samples (reporting values of several g/t, and tens of g/t, respectively). Gold and silver values are enriched over the entire project area, whereas copper, zinc, lead and molybdenum tend to be more concentrated in the eastern sector.

The property has received a total of 3,552.86 meters of historical drilling in three campaigns, targeting a narrow gold-silver "horizon" within the mixed volcano-sedimentary package immediately beneath a hanging wall andesite lava sequence, using the detachment fault model. The drilling showed that gold and silver were the two main economic elements present in the near surface and significantly anomalous values were intercepted over intervals of meters to tens of meters. Base metals such as copper, lead and zinc were intercepted in significantly anomalous amounts in a few drill holes (0.1-1.0%), over intervals of meters.

However, Alturas considers that a gold-rich VMS model is instead applicable, by analogy with other gold-rich VMS deposits in the belt such as Tambogrande some 480 kilometres to the NNW, it is conceivable that lenses of massive sulphide mineralization in the order of hundreds of meters in size, could be concealed beneath the gold-silver rich horizon, which may represent a regional "exhalite" horizon. No systematic exploration for blind VMS targets has yet taken place in the district.

As required by the National Instrument 43-101, Alturas's designated Qualified Person for the supervision of exploration of the projects is Dr. Paul Pearson, F. AUSIMM, who has reviewed the technical information reported in this News Release.

About Ancorp

Ancorp is a Peruvian private group with diversified investment interests developed in more than 30 years of business history from its partners. Their investments focus has been in the identification, development and promotion of hydropower projects in Peru, with a portfolio successfully developed to date, with an estimated construction investment of over USD$ 8 billion. In addition, Ancorp' main partner founded and directed a renown Peruvian engineering company in 1978, which primary focus has been the identification, design and development of hydroelectric and thermal plants, transmission and distribution lines in Latin America and was merged in 2012 with Dessau International. Other past and current investments includes participation in real estate investment, non-metallic mining, medical services, transport, electro-mechanic industry among others.

About Alturas Minerals

Alturas is a Canadian corporation, and is the indirect parent of the Peruvian company, Alturas Minerals S.A. ("Alturas Peru") and of the Chilean company, Alturas Chile Limitada ("Alturas Chile"). Alturas Peru has been exploring various mineral projects in Peru since January 2004. Alturas Chile initiated exploration activities during the second quarter of fiscal 2010. Alturas' exploration strategy is focused on the discovery of large copper-gold porphyry/skarn deposits and epithermal gold mineralized deposits.

Besides Callejones, Alturas has three drill-ready mineral exploration projects located in Peru, including the Utupara, Sombrero and Huajoto projects. Alturas also entered into a transfer agreement on its Pampa Colorada property in northern Peru with Origen Group S.A.C. but maintains royalty rights and a claw back clause on 60-100% of the mining rights under certain conditions (see press release dated January 5th, 2012). Alturas is also advancing its two optioned gold-copper projects Marilin and Quispe in the Maricunga belt of northern Chile.

For further information, please visit the Company's website at www.alturasminerals.com.


Alturas Minerals Corp.                                                      
1 Toronto Street, Suite 201, Toronto, ON, Canada, M5C 2V6, and              
Av. Del Pinar 180, Suite 804, Chacarilla del Estanque, Lima 33, Peru        

Should you wish to receive Company news via email, please email [email protected] and specify "Alturas News" in the subject line.

The TSX Venture Exchange and the Bolsa de Valores de Lima do not accept responsibility for the adequacy or accuracy of this release.

Cautionary Language and Forward Looking Statements

This press release may contain "forward-looking statements", which are subject to various risks and uncertainties that could cause actual results and future events to differ materially from those expressed or implied by such statements. Investors are cautioned that such statements are not guarantees of future performance and results. Risks and uncertainties about the Company's business are more fully discussed in the Company's disclosure documents filed from time to time with the Canadian securities authorities.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Skeuomorphism usually means retaining existing design cues in something new that doesn’t actually need them. However, the concept of skeuomorphism can be thought of as relating more broadly to applying existing patterns to new technologies that, in fact, cry out for new approaches. In his session at DevOps Summit, Gordon Haff, Senior Cloud Strategy Marketing and Evangelism Manager at Red Hat, will discuss why containers should be paired with new architectural practices such as microservices ra...
Roberto Medrano, Executive Vice President at SOA Software, had reached 30,000 page views on his home page - http://RobertoMedrano.SYS-CON.com/ - on the SYS-CON family of online magazines, which includes Cloud Computing Journal, Internet of Things Journal, Big Data Journal, and SOA World Magazine. He is a recognized executive in the information technology fields of SOA, internet security, governance, and compliance. He has extensive experience with both start-ups and large companies, having been ...
The industrial software market has treated data with the mentality of “collect everything now, worry about how to use it later.” We now find ourselves buried in data, with the pervasive connectivity of the (Industrial) Internet of Things only piling on more numbers. There’s too much data and not enough information. In his session at @ThingsExpo, Bob Gates, Global Marketing Director, GE’s Intelligent Platforms business, to discuss how realizing the power of IoT, software developers are now focu...
Operational Hadoop and the Lambda Architecture for Streaming Data Apache Hadoop is emerging as a distributed platform for handling large and fast incoming streams of data. Predictive maintenance, supply chain optimization, and Internet-of-Things analysis are examples where Hadoop provides the scalable storage, processing, and analytics platform to gain meaningful insights from granular data that is typically only valuable from a large-scale, aggregate view. One architecture useful for capturing...
SYS-CON Events announced today that Vitria Technology, Inc. will exhibit at SYS-CON’s @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Vitria will showcase the company’s new IoT Analytics Platform through live demonstrations at booth #330. Vitria’s IoT Analytics Platform, fully integrated and powered by an operational intelligence engine, enables customers to rapidly build and operationalize advanced analytics to deliver timely business outcomes ...
DevOps is about increasing efficiency, but nothing is more inefficient than building the same application twice. However, this is a routine occurrence with enterprise applications that need both a rich desktop web interface and strong mobile support. With recent technological advances from Isomorphic Software and others, it is now feasible to create a rich desktop and tuned mobile experience with a single codebase, without compromising performance or usability.
SYS-CON Events announced today Arista Networks will exhibit at SYS-CON's DevOps Summit 2015 New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. Arista Networks was founded to deliver software-driven cloud networking solutions for large data center and computing environments. Arista’s award-winning 10/40/100GbE switches redefine scalability, robustness, and price-performance, with over 3,000 customers and more than three million cloud networking ports depl...
Application metrics, logs, and business KPIs are a goldmine. It’s easy to get started with the ELK stack (Elasticsearch, Logstash and Kibana) – you can see lots of people coming up with impressive dashboards, in less than a day, with no previous experience. Going from proof-of-concept to production tends to be a bit more difficult, unfortunately, and it tends to gobble up our attention, time, and money. In his session at DevOps Summit, Otis Gospodnetić, co-author of Lucene in Action and founder...
The speed of software changes in growing and large scale rapid-paced DevOps environments presents a challenge for continuous testing. Many organizations struggle to get this right. Practices that work for small scale continuous testing may not be sufficient as the requirements grow. In his session at DevOps Summit, Marc Hornbeek, Sr. Solutions Architect of DevOps continuous test solutions at Spirent Communications, will explain the best practices of continuous testing at high scale, which is r...
SYS-CON Events announced today that Open Data Centers (ODC), a carrier-neutral colocation provider, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. Open Data Centers is a carrier-neutral data center operator in New Jersey and New York City offering alternative connectivity options for carriers, service providers and enterprise customers.
Thanks to Docker, it becomes very easy to leverage containers to build, ship, and run any Linux application on any kind of infrastructure. Docker is particularly helpful for microservice architectures because their successful implementation relies on a fast, efficient deployment mechanism – which is precisely one of the features of Docker. Microservice architectures are therefore becoming more popular, and are increasingly seen as an interesting option even for smaller projects, instead of bein...
Security can create serious friction for DevOps processes. We've come up with an approach to alleviate the friction and provide security value to DevOps teams. In her session at DevOps Summit, Shannon Lietz, Senior Manager of DevSecOps at Intuit, will discuss how DevSecOps got started and how it has evolved. Shannon Lietz has over two decades of experience pursuing next generation security solutions. She is currently the DevSecOps Leader for Intuit where she is responsible for setting and driv...
The explosion of connected devices / sensors is creating an ever-expanding set of new and valuable data. In parallel the emerging capability of Big Data technologies to store, access, analyze, and react to this data is producing changes in business models under the umbrella of the Internet of Things (IoT). In particular within the Insurance industry, IoT appears positioned to enable deep changes by altering relationships between insurers, distributors, and the insured. In his session at @Things...
In his session at DevOps Summit, Tapabrata Pal, Director of Enterprise Architecture at Capital One, will tell a story about how Capital One has embraced Agile and DevOps Security practices across the Enterprise – driven by Enterprise Architecture; bringing in Development, Operations and Information Security organizations together. Capital Ones DevOpsSec practice is based upon three "pillars" – Shift-Left, Automate Everything, Dashboard Everything. Within about three years, from 100% waterfall, C...
Even as cloud and managed services grow increasingly central to business strategy and performance, challenges remain. The biggest sticking point for companies seeking to capitalize on the cloud is data security. Keeping data safe is an issue in any computing environment, and it has been a focus since the earliest days of the cloud revolution. Understandably so: a lot can go wrong when you allow valuable information to live outside the firewall. Recent revelations about government snooping, along...