Andean American Gold Corp.
TSX VENTURE : AAG
FRANKFURT : AQN

Andean American Gold Corp.

February 07, 2011 08:30 ET

Andean American Conducts Review of Properties Held by Its Subsidiary, Sinchao Metals

TORONTO, ONTARIO--(Marketwire - Feb. 7, 2011) - Andean American Gold Corp. ("Andean American" or the "Company") (TSX VENTURE:AAG)(FRANKFURT:AQN) announces that, during a recent review of the properties held by Sinchao Metals Corp ("Sinchao"), in which Andean holds a 60% interest, it has become apparent that four of the property claims comprising the Sinchao Project, which were the subject of a title opinion rendered at the time of Sinchao's formation in 2006, were not properly registered by the former owner, a subsidiary of Andean American Gold Corp. As a result of this property review, Sinchao has determined that it does not have valid ownership of the properties in question and Sinchao is taking immediate steps to remedy the deficiencies in title, however, at this early stage there are no assurances that these steps will be successful.

In addition to the four properties mentioned above, Sinchao has also determined that six other properties believed to have been acquired at the time of the Company's formation had previously lapsed and thus are not held by Sinchao. These properties are not material to Sinchao's operations.

Since the middle of last year Andean American has assembled a new management team and restructured its Board of Directors. The review of the Sinchao assets was initiated this year by the new Board of Directors of Andean American and it was during this process that the discrepancies in certain of the property titles became apparent. Of the properties in question, only four of them have the potential to impact the current Sinchao Project and the management of Sinchao has already taken steps to correct the records of ownership of these properties.

"While the management and board of Andean American is concerned about the discrepancies in certain of the property titles held by Sinchao and will provide every support to Sinchao in its efforts to rapidly resolve this situation, Andean's primary focus remains our Invicta Project which is well funded and is progressing on track towards construction," said David Rae, President and CEO of Andean American.

About Andean American

Andean American is an international mining and exploration company focused on value growth through the development of gold and copper projects in Peru and currently has two key assets: the 28,200 hectare Invicta gold-silver-copper advanced exploration stage project and 60% of Sinchao Metals Corp., owner of the Sinchao gold-silver-copper exploration project. In addition, the Company is actively targeting early stage gold and silver prospects in Peru.

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On behalf of Andean American Gold Corp.,

David Rae, President and Chief Executive Officer

This news release may contain forward-looking information within the meaning of the Securities Act (Ontario) ("forward-looking statements"). Such forward-looking statements may include the Company's plans for its mineral projects, the overall economic potential of its properties, the availability of adequate financing and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements expressed or implied by such forward-looking statements to be materially different. Such factors include, among others, risks and uncertainties relating to potential political risks involving the Company's operations in a foreign jurisdiction, uncertainty of production and costs estimates and the potential for unexpected costs and expenses, physical risks inherent in mining operations, currency fluctuations, fluctuations in the price of gold and other metals, completion of economic evaluations, changes in project parameters as plans continue to be refined, the inability or failure to obtain adequate financing on a timely basis, and other risks and uncertainties, including those described in the Company's Financial Statements, Management Discussion and Analysis and Material Change Reports filed with the Canadian Securities Administrators and available at www.sedar.com.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Andean American Gold Corp.
    David Rae
    President and Chief Executive Officer
    (416) 368-9500
    or
    Andean American Gold Corp.
    (604) 681-6186 or Toll Free: 1-888-356-4784
    (604) 681-3652 (FAX)
    investors@aaggold.com
    www.aaggold.com