VANCOUVER, BRITISH COLUMBIA--(Marketwire - February 22, 2012) - Equinox Exploration Corp. (TSX VENTURE:EQX) is pleased to announce that it has signed a LOI to acquire a 100% interest in a mining lease that consists of three exploitation concessions totaling approximately 1,110 acres in the Atacama region of Chile. The area under lease includes the Aura Copper Mine which commenced production at the end of the third quarter, 2011. The terms of acquisition, which are subject to regulatory approval, will be finalized in a definitive agreement.
The company plans to commence an exploration program, consisting of geological mapping, sampling and drilling in 2012 to define and characterize the potential of the Aura mine and the surrounding area. Preliminary geological surface mapping indicates the presence of multiple vein structures that contain copper mineralization. Some of the copper is in the form of oxide mineralization.
The LOI allows Equinox exclusivity for 30 days to negotiate a definitive agreement with the owners and to complete legal and technical due diligence on the Project. Under the terms outlined in the LOI, Equinox will gain a 100% interest in the exploitation concession by making total cash payments to the owners of USD $250,000 over 5 years, $50,000 being due upon signing the definitive option agreement and $50,000 each year thereafter for four more years. Equinox will also issue 3,500,000 shares of Company capital stock to the owners over the 5 year period. The owners will retain a 2% net smelter returns royalty.
Equinox Exploration Director, Roy Fuller, commented, "The acquisition of the Aura mine is a major step towards achieving our goal of obtaining a diverse portfolio of copper properties. Operation of a mine gives us the advantage of having the potential for a revenue stream that will help fund future exploration onsite. We believe our ability to be a copper producer with this project truly sets us apart from many other exploration companies."
About Equinox Exploration Inc.
Equinox Exploration is a publicly traded corporation engaged in the exploration and development of copper properties with its major focus on copper deposits in the Southwest United States and Chile. Equinox has acquired strategic positions within some of the world's most prolific copper belts with the acquisitions of its Arizona North Star claims and it's Aura mine located in Chile.
Stephen B. Butrenchuk, P. Geo, P.Geol., Director of Equinox, is the Qualified Person as defined in National Instrument 43-101, who has reviewed and approved the technical content of this news release.
The foregoing is subject to regulatory approval.
On behalf of the Board of Directors,
Roy Fuller, Director
Forward-Looking Statement
This news release includes certain statements that may be deemed "forward-looking statements". Forward-looking information includes, but is not limited to: statements with respect to the effect and estimated timeline of the drilling and assay results on the Company; the estimation of mineral reserves and mineral resources; the timing and amount of estimated future exploration; costs of exploration; capital expenditures; success of exploration activities; permitting time lines and permitting ; government regulation of mining operations; environmental risks; unanticipated reclamation expenses; and title disputes or claims. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". All statements in this release, other than statements of historical facts, including the likelihood of commercial mining and possible future financings are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include: unsuccessful exploration results; changes in metals prices; changes in the availability of funding for mineral exploration; unanticipated changes in key management personnel and general economic conditions. Mining is an inherently risky business. Accordingly the actual events may differ materially from those projected in the forward-looking statements. For more information on the Company and the risks and challenges of its business, investors should review the Company's annual filings that are 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:
Chris Bond
480-525-9200
cbond@equinoxexploration.com
www.equinoxexploration.com