Himalayan Capital Corp.

February 06, 2012 05:00 ET

Himalayan Capital Corp. Signs Agreement on Caballo Blanco Project

TORONTO, ONTARIO--(Marketwire - Feb. 6, 2012) - Himalayan Capital Corp. ("Himalayan" or the "Company") (TSX VENTURE:HIM) is pleased to announce that, through its 100% owned subsidiary, Mineral Azul Ventures Limitada ("Azul"), it has signed an option agreement to acquire a 100% interest in the Caballo Blanco copper-iron project, which is located close to the Company's La Higuera copper-gold project in Chile. The Caballo Blanco copper-iron project covers an area of 2,550 hectares and straddles the Panamerican Highway (see the map below).

To view the map associated with this press release, please visit the following link: http://media3.marketwire.com/docs/HIM0602map.pdf.

The option agreement, which remains subject to the approval of the TSX Venture Exchange, calls for the Company to make cash payments totalling US$1,000,000 and to issue a total of 500,000 common shares of the Company to an arm's length third party over a three-year period. Specifically, the Company is be required to pay US$50,000 immediately; US$50,000 and the issuance of 100,000 common shares of the Company on or before July 1, 2012; US$100,000 on or before January 1, 2013; US$100,000 and the issuance of 150,000 common shares of the Company on or before July 1, 2013; US$200,000 on or before July 1, 2014; the issuance of 250,000 common shares of the Company on or before January 1, 2015; and US$500,000 on or before July 1, 2015.

There has been previous exploration carried out on and there are several small copper workings that occur within the Caballo Blanco property. Previous exploration included ground magnetic surveying, I.P. surveying and a total of 10 reverse circulation ("RC") and 5 diamond drill holes. The ground magnetic survey generated a large, moderate amplitude magnetic anomaly and several of the exploration drill holes were located within this.

As discussed in the Company's National Instrument 43-101 technical report with respect to the La Higuera Property (which is available on SEDAR under the Company's profile at www.sedar.com), in the discussion on nearby properties: "In 2001, LAC (UK) drilled 10 generally shallow RC holes at their Caballo Blanco Project, which is located approximately 6 km SW of the La Higuera Property. The following intervals were obtained in two of their holes: 30 m at 0.44% Cu, and 82 m at 0.35% Cu and 19% Fe, (Toohey, J., 2002; Geological Report on the Caballo Blanco Property, Region IV, Northern Chile; prepared for Victory Ventures Corporation). The drill information on the LAC property is not necessarily indicative of the mineralization on the La Higuera property which is the subject of this technical report."

Note: As the Company has not done sufficient work to confirm these results, the information should not be relied upon.

The iron is predominantly in the form of magnetite and the copper sulphides are predominantly chalcopyrite, as is the case at the La Higuera Project.

The drill results and associated magnetic anomaly indicate the presence of an Iron Oxide Copper Gold (I.O.C.G.) style mineralized system associated with the Atacama Fault zone which transects the project area.

David O'Connor, President and Chief Executive Officer of the Company stated: "Whereas the iron-copper-gold mineralization evident in the mines at La Higuera is much more developed, the results of previous exploration at Caballo Blanco represents an exploration target with significant merit which we plan to explore in parallel with our work at the La Higuera Project. Our first task will be to re-survey all the old drill positions and carry out a more detailed ground geophysical program over the area of copper workings and significant drill results. We will then design a new drill program based on this."

Micheal Easdon, M.Sc., CPG, an independent consultant to the Company, is a "qualified person" as defined by National Instrument 43-101, and has reviewed and approved the technical information and data included in this press release.

About Himalayan Capital Corp.

Himalayan Capital Corp. is a mineral exploration company with the rights, through its wholly owned subsidiary Minera Azul Ventures Limitada, to acquire a 100% interest in a prospective copper-gold property in La Higuera, Chile (the "La Higuera Property").

The La Higuera Property, which is located approximately 600 kilometres north of Santiago, was assembled as a result of the first-time consolidation of mining rights in a historical copper-gold mining center and is located in a prolific I.O.C.G. belt surrounded by excellent infrastructure in a mining friendly jurisdiction.

The La Higuera Property covers a historic copper mining district with mining activity dating back to at least the late 18th century; however, there has been no known modern exploration conducted on the property. Since the consolidation of the mining rights in June 2011, Minera Azul has initiated a rock sampling program and completed geophysical work which has generated intense magnetic and chargeability anomalies coincident with existing copper workings.

Cautionary Statements

Information set forth in this news release may involve forward-looking statements under applicable securities laws. Forward-looking statements are statements that relate to future, not past, events. In this context, forward-looking statements often address expected future business and financial performance, and often contain words such as "anticipate", "believe", "plan", "estimate", "expect", and "intend", statements that an action or event "may", "might", "could", "should", or "will" be taken or occur, or other similar expressions. All statements, other than statements of historical fact, are forward-looking statements. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward- looking statements. Such factors include, among others, the following risks: the need for additional financing; operational risks associated with mineral exploration; market conditions; fluctuations in commodity prices; title matters; environmental liability claims and insurance; reliance on key personnel; the potential for conflicts of interest among certain officers, directors or promoters with certain other projects; the absence of dividends; competition; dilution; the volatility of our common share price and volume and the additional risks identified in the "Risk Factors" section of the Company's Filing Statement or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulations. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and Himalayan undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable securities laws. Investors are cautioned against attributing undue certainty to forward-looking statements.

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.

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