Himalayan Capital Corp.

February 08, 2012 05:00 ET

Himalayan Capital Corp. Signs Surface Access Agreement Over the La Higuera Project (With Option to Purchase)

TORONTO, ONTARIO--(Marketwire - Feb. 8, 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 agreement with the owner of the surface rights on the ground covering the core of Azul's mineral rights at the La Higuera project. The agreement grants Azul exclusive access, use, occupation and transit to facilitate execution of mineral exploration, as well as an option to purchase the surface rights.

The access agreement called for an initial payment of 6 million Chilean pesos ("CLP") (approximately 12,000 Canadian Dollars ("C$")) and interim payments of 8 million CLP (approximately C$16,000) in January 2013 and 10 million CLP (approximately C$20,000) in January 2014. The access agreement is set to expire in January 2015, when Azul would have the option to purchase the surface rights by making a cash payment equivalent to UF 28,301 (the UF (Unidad de Fomento) is a variable fiscal unit used in Chile that is adjusted for inflation, but is currently valued at approximately C$46 per unit, which would correspond to an approximate payment of C$1,300,000).

In addition, the Company has received approval from the Chilean Government body SERNAGEOMIN, as well as the mayor of La Higuera, to proceed with the Company's drilling program.

David O'Connor, President and Chief Executive Officer of Himalayan Capital Corp. commented "The signing of this surface rights agreement is another important milestone in the development of our La Higuera Project. We have been very pleased to date with our relationships with local authorities and look forward to continue working with them as we develop the project."

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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