TORONTO, ONTARIO--(Marketwired - Feb. 22, 2017) - Duran Ventures Inc. (TSX VENTURE:DRV)(LMA:DRV) ("Duran" or the "Company") is pleased to announce that it has entered into a letter of intent ("LOI") to sell the Company's Don Pancho polymetallic silver-lead-zinc project ("Don Pancho" or the "Project") located in the Department of Lima, Peru, to Tartisan Resources Corp. ("Tartisan") for cash consideration of $50,000 CDN and 500,000 shares of Tartisan. Duran will also receive an additional 500,000 shares of Tartisan as certain Project milestones are achieved by Tartisan, and will retain a 2% Net Smelter Royalty ("NSR") in the Project of which 1% can be purchased by Tartisan for $500,000 CDN. The parties intend to replace the LOI with a definitive agreement (the "Definitive Agreement") containing industry standard terms and conditions no later than March 31, 2017, following a due diligence review by both parties.
The Don Pancho project is located in a prolific polymetallic mineral belt in Central Peru. Trevali Mining Corporation's Santander Silver-Lead-Zinc mine is located 9 kilometers to the east of the Project. The World Class Iscaycruz and Yauliyacu Polymetallic Mines operated by Glencore-Xstrata plc are located 50 kilometres to the north-northwest of the Project. Buenaventura's Silver-Lead-Zinc Uchucchacua Mine is located 63 kilometres north of the Project.
The Don Pancho project was optioned to a third party in 2012 and returned 100% to Duran in late 2014 after completing six holes totaling 2,021 metres of diamond drilling. New geological information and modeling suggests that a different drilling direction is warranted, which should greatly enhance the Project's potential. The Project was well managed with regards to an extensive database and leaving a good relationship with the local community.
The Company is pleased to enter into this transaction with Tartisan, which follows Duran's business model as a "Cash and Project Generator". The Company will continue to benefit from successful exploration and development on Don Pancho by Tartisan. Jeffrey Reeder, CEO of Duran, states "We are pleased to enter into this LOI with Tartisan for the sale of our Don Pancho project. Tartisan is well established in Peru and is in a position to advance this Project, allowing Duran to continue to benefit in the success of Don Pancho. Duran will continue to grow its business in Peru by adding multiple revenue streams, including vending and joint venturing prospective properties such as Don Pancho to third parties."
The closing of the transaction is subject to a number of conditions including the entering into of the Definitive Agreement, the satisfactory completion of due diligence review by the parties, receipt of all required approvals and consents including all regulatory approval, and satisfaction of other customary closing conditions. The transaction cannot close until the required approvals are obtained.
Aguila Norte Mineral Processing Plant
The Company is also pleased announce that it is continuing to process mineral at its 80% owned Aguila Norte mineral processing plant in Northern Peru. After successful processing of third party mineral, the Company is now processing 100% owned mineral and is now confident to enter into agreements with third parties to purchase additional mineral for processing.
Jeffrey Reeder, P.Geo., and a qualified person as defined in National Instrument 43-101, is responsible for all technical information contained in this news release.
Duran Ventures Inc. is a Canadian exploration company focused on mineral processing and the exploration and development of precious and base metal properties in Peru.
Duran Ventures Inc. is a Canadian resource company listed on the TSX Venture Exchange and the Bolsa de Valores de Lima: Symbol "DRV"
Neither the 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.
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 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.