OTTAWA, ONTARIO--(Marketwired - June 14, 2016) - Cornerstone Capital Resources Inc. ("Cornerstone" or "the Company") (TSX VENTURE:CGP)(FRANKFURT:GWN)(BERLIN:GWN)(OTCBB:CTNXF)announces that its Ecuadorean subsidiary, CESA, has signed a definitive agreement (the "Agreement") with Ecuador's State Mining Company, Empresa Nacional Minera Empresa Pública("ENAMI"), replacing the letter of intent announced April 14, 2015, and creating a structure to jointly prospect and explore for mineral deposits in Ecuador. The principal terms of the Agreement can be read at www.cornerstoneresources.com/i/pdf/NR16-12EnamiTerms.pdf.
Cornerstone's CEO, Brooke Macdonald, said: "This Agreement gives Cornerstone and its funding partners the opportunity to explore highly prospective ground throughout Ecuador, the most under-explored country in the Andes. The Ecuadorian State will benefit through ENAMI's 16% equity participation in any joint venture companies created to pursue commercial production, in addition to the collection of taxes and royalties, plus the transfer of technical knowledge from Cornerstone to ENAMI staff seconded to the projects. While this is not an exclusive arrangement and ENAMI is free to enter into similar arrangements with other companies, Cornerstone is, to our knowledge, the first non-State owned company to enter into a such an exploration alliance with ENAMI. Cornerstone has received indications of interest from several major mining companies active in early stage exploration in South America and we expect to be able to attract one or more funding partners in the near future. CESA has identified several highly prospective areas using the extensive proprietary geological data base gathered since Cornerstone began exploring Ecuador in 2005. Three such areas are being considered for joint exploration, and others may be added in the future."
Thanks to changes in the taxation of mining projects implemented by the Government on the advice of international consultant Wood Mackenzie, summarized at the following link www.cornerstoneresources.com/i/pdf/NR16-12WoodMacSlides.pdf, Ecuador has become a more competitive destination for mining investment. Evidence of this includes the recent start of construction on the Mirador copper mine, the finalization of the terms of the development agreement and the announcement of a positive feasibility study for for the Fruta del Norte gold mine, the planned construction of the Rio Blanco gold-silver mine, and the fact that in recent weeks a number of other Canadian mining companies, including Cornerstone, have been successful at raising significant funds to explore and develop projects in Ecuador.
About Cornerstone:
Cornerstone Capital Resources Inc. is a well-funded mineral exploration company with a diversified portfolio of projects in Ecuador and Chile, and a proven ability to identify, acquire and advance properties of merit. The company's business model is based on generating exploration projects whose subsequent development is funded primarily through partnerships.
Among its interests in the country, Cornerstone holds a 15% interest in the Cascabel copper-gold project in northern Ecuador, where drilling is ongoing. Eight high‐priority porphyry centres are now recognized on the property, and ten porphyry targets have been identified to date in the Cascabel cluster. See NR-16-11 dated May 16, 2016 - Cascabel Exploration Update - Hole 17: www.cornerstoneresources.com/s/NewsReleases.asp?ReportID=749195, and also NR 15-23 dated October 20, 2015 - Cornerstone announces longest and highest grade intercepts to date in Hole 12 at Cascabel Project - 1312m @ 0.67% Copper, and 0.63 g/t Gold, for 1.05% CuEq: http://www.cornerstoneresources.com/s/NewsReleases.asp?ReportID=726615.
SolGold Plc owns 85% of the equity of Exploraciones Novomining S.A. ("ENSA"), an Ecuadorean company that holds 100% of the Cascabel concession. Cornerstone owns the remaining 15% of ENSA, which also holds the rights to the La Encrucijada gold-silver project. SolGold is funding 100% of the exploration at Cascabel and is the operator of the project. Cornerstone's 15% interest is financed through completion of a feasibility study.
Cascabel is located in north-western Ecuador in an under-explored portion of the Andean Copper Belt and 60 km northeast of the Llurimaga (formerly Junin) copper project where an inferred resource of 982 million tons at 0.89% Cu has been defined (0.4% Cu cut-off grade; Micon International Co. Ltd. Technical Report for Ascendant Exploration SA, August 20, 2004, pages 28 & 29).
SolGold has announced it is planning a resource statement at Alpala, the most advanced target at Cascabel, during 2016, in addition to drill testing the other key targets at Aguinaga, Trivino, Alpala NW, Hematite Hill, Alpala SE, Cristal, Tandayama America and Chinambicito within the Cascabel concession. By the end of 2016 SolGold has reported it is planning further metallurgical testing, and completion of early stage mine and plant design and a scoping study (which may or may not be the approximate equivalent of a preliminary economic assessment as defined under National Instrument 43-101) for an economic development at Cascabel.
Further information is available on Cornerstone's website: www.cornerstoneresources.com and on Twitter.
Qualified Person:
Yvan Crepeau, MBA, P.Geo., Cornerstone's Vice President, Exploration and a qualified person in accordance with National Instrument 43-101, is responsible for supervising Cornerstone's exploration programs and has reviewed and approved the information contained in this news release.
Cautionary Notice:
This news release may contain 'Forward-Looking Statements' that involve risks and uncertainties, such as statements of Cornerstone's plans, objectives, strategies, intentions and expectations. The words "potential," "anticipate," "forecast," "believe," "estimate," "expect," "may," "project," "plan," and similar expressions are intended to be among the statements that identify 'Forward-Looking Statements.' Although Cornerstone believes that its expectations reflected in these 'Forward-Looking Statements' are reasonable, such statements may involve unknown risks, uncertainties and other factors disclosed in our regulatory filings, viewed on the SEDAR website at www.sedar.com. For us, uncertainties arise from the behaviour of financial and metals markets, predicting natural geological phenomena and from numerous other matters of national, regional, and global scale, including those of an environmental, climatic, natural, political, economic, business, competitive, or regulatory nature. These uncertainties may cause our actual future results to be materially different than those expressed in our Forward-Looking Statements. Although Cornerstone believes the facts and information contained in this news release to be as correct and current as possible, Cornerstone does not warrant or make any representation as to the accuracy, validity or completeness of any facts or information contained herein and these statements should not be relied upon as representing its views subsequent to the date of this news release. While Cornerstone anticipates that subsequent events may cause its views to change, it expressly disclaims any obligation to update the Forward-Looking Statements contained herein except where outcomes have varied materially from the original statements.
On Behalf of the Board,
Brooke Macdonald, President and CEO
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:
ir@cornerstoneresources.ca
(613) 421-6923