TORONTO, ONTARIO--(Marketwire - Aug. 15, 2012) - Duran Ventures Inc. (TSX VENTURE:DRV) ("Duran" or the "Company") is pleased to announce that it has entered into a Letter of Intent ("LOI") with a well-funded private Peruvian mining company (the "Optionee") to earn a 70% interest in the Company's Don Pancho Polymetallic Silver-Lead-Zinc Project (the "Project") located in the Department of Lima, Peru for cash consideration of US$2,030,000.
The Don Pancho project covers an area of 800 hectares and is located nine kilometres west of the historical Santander silver-lead-zinc mine currently being developed by Trevali Resources Corp. Mapping and sampling shows the silver-lead-zinc mineralization is associated with an extensive breccia zone.
Under the terms of the LOI the Optionee has the following option payment obligations to Duran:
- US$30,000 upon signing of the LOI;
- US$250,000 upon signing the Definitive Agreement (the "Agreement");
- US$750,000 eighteen (18) months after signing the Agreement; and
- US$1,000,000 to exercise the Optionee's purchase option to acquire 70% of the Project no later than forty-two (42) months after signing the Agreement.
|In addition, the Optionee has the following exploration obligations:
- Undertake a diamond drill program of at least 3,000 metres on the Project during the first eighteen (18) months after signing the Agreement;
- Incur exploration costs of at least US$3,500,000, including the diamond drill program, on the Project during the first thirty-six (36) months after signing the Agreement; and
- Undertake to commence an economic study on the Project within thirty-six (36) months of signing the Agreement.
The LOI includes a provision for a sixty (60) day due diligence period by the Optionee.
The Company also announces that it has signed agreements with the local community at its Ichuña Copper-Silver Project located 120 kilometres northeast of Arequipa in the Department of Moquegua in Southern Peru and adjacent to the Chucapaca Project of Gold Fields Limited and Compañia de Minas Buenaventura S.A.A. Work has commenced on road building to provide access to drill sites for a drill program expected to commence in the 4th quarter of 2012.
The Company is also pleased to announce that Mr. David Prins has joined its Advisory Board. Mr. Prins is a Civil Engineer with extensive experience in the evaluation, design, planning and subsequent development execution stages of mining projects, principally in Latin America. Mr. Prins' previous position was as President and CEO of Explorator Resources Inc. Prior to this he was the principal of his own Santiago, Chile, based consulting firm which provided project evaluation and management services to many leading precious and base metals mining companies. Mr. Prins has also worked for Placer Dome Project Development Group directly and indirectly for a period of over 16 years which included a 10 year period at the Zaldivar Mine in Northern Chile.
Duran is a Canadian exploration company focused on the exploration and development of porphyry copper, precious metal, and polymetallic deposits in Peru.
Duran Ventures Inc. is a Canadian resource company listed on the TSX Venture Exchange: Symbol "DRV".
Disclosure Regarding Forward-Looking Statements: This press release contains certain "Forward-Looking Statements" within the meaning of applicable securities legislation. We use words such as "might", "will", "should", "anticipate", "plan", "expect", "believe", "estimate", "forecast" and similar terminology to identify forward looking statements and forward-looking information. Such statements and information are based on assumptions, estimates, opinions and analysis made by management in light of its experience, current conditions and its expectations of future developments as well as other factors which it believes to be reasonable and relevant. Forward-looking statements and information involve known and unknown risks, uncertainties and other factors that may cause our actual results to differ materially from those expressed or implied in the forward-looking statements and information and accordingly, readers should not place undue reliance on such statements and information. Risks and uncertainties that may cause actual results to vary include but are not limited to the speculative nature of mineral exploration and development, including the uncertainty of resource estimates; operational and technical difficulties; the availability to the Company of suitable financing alternatives; fluctuations in copper and molybdenum and other commodity prices; changes to and compliance with applicable laws and regulations, including environmental laws and obtaining requisite permits; political, economic and other risks arising from our Peruvian activities; fluctuations in foreign exchange rates; as well as other risks and uncertainties which are more fully described in our annual and quarterly Management's Discussion and Analysis and in other filings made by us with Canadian securities regulatory authorities and available at www.sedar.com. While the Company believes that the expectations expressed by such forward-looking statements and forward-looking information and the assumptions, estimates, opinions and analysis underlying such expectations are reasonable, there can be no assurance that they will prove to be correct. In evaluating forward-looking statements and information, readers should carefully consider the various factors which could cause actual results or events to differ materially from those expressed or implied in the forward looking statements and forward-looking information.
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