SPOKANE, WASHINGTON--(Marketwire - Jan. 10, 2013) - Hunt Mining Corp. ("Hunt") (TSX VENTURE:HMX) is pleased to announce it has signed a new agreement with Fomento Minero De Santa Cruz Sociedad Del Estado ("Fomicruz") for the La Valenciana project in Santa Cruz Argentina. The La Valenciana project lies to the west of, and is contiguous to, Hunt's La Josefina project. The La Valenciana project is also contiguous to and north of the Joaquin Silver-Gold project, which was recently purchased by Coeur D' Alene Mines Corp.
The new agreement for La Valenciana has the following provisions:
- The exploration period is seven years and will end on October 31, 2019;
- Hunt through Cerro Cazador S.A. ("CCSA"), its 100% owned Argentine subsidiary, will make a total investment of at least USD$5,000,000 in exploration on the La Valenciana project;
- If Hunt elects to take the La Valenciana project into production, it must create a new corporation (the "JV corporation"), that will be 9% owned by Fomicruz;
- Upon completion of a final feasibility study on the La Valenciana project, Fomicruz will have a one-time-only 30 day option to elect to purchase up to an additional 40% of the JV corporation, which would bring its total ownership to 49%. If Fomicruz elects to exercise this option, consideration for its additional investment will be made according to the following schedule:
- To purchase an additional 10% interest in the JV corporation, Fomicruz must reimburse Hunt for 10% of the exploration investment made by Hunt during the exploration period, bringing Fomicruz's total ownership interest in the JV corporation to 19%;
- To purchase the next additional 10% interest in the JV corporation, Fomicruz must reimburse Hunt for 20% of the exploration investment made by Hunt during the exploration period, bringing Fomicruz's total ownership interest in the JV corporation to 29%;
- To purchase a final additional 20% interest in the JV corporation, Fomicruz must reimburse Hunt for 25% of the exploration investment made by Hunt during the exploration period, bringing Fomicruz's total ownership interest in the JV corporation to 49%.
- Hunt, through its Argentine subsidiary, has the right to buy back any increase in Fomicruz's ownership interest in the JV corporation at a purchase price of USD$200,000 per each percentage interest owned by Fomicruz down to its initial ownership interest of 9%;
- Hunt has the right to purchase Fomicruz's initial 9% ownership interest of the JV corporation at a price to be negotiated by the parties.
Matt Hughes, Hunt's President, stated; "We have been working on this contract for the last three years and are excited to add this prospective property block to our current portfolio of projects. Management believes that the La Valenciana project and Hunt Mining's other Santa Cruz, Argentina precious metals projects have continued gold and silver exploration potential."
About Hunt Mining
Hunt Mining Corp. has been an active and aggressive explorer in Santa Cruz since 2006. During that time, Hunt's wholly owned subsidiary, Cerro Cazador S.A., has completed a large amount of exploration activity including approximately 57,000 meters of HQ core drilling, 416 line kilometers of Induced Polarization geophysical surveys and more than 15,000 surface channel, chip, and trench samples. Hunt Mining has recently entered into an exploration agreement with Eldorado Gold for exploration and development in the Santa Cruz Province of Argentina. Historical results and additional information can be viewed at www.huntmining.com.
This announcement contains forward-looking information and forward-looking statements (collectively, "forward-looking information") within the meaning of applicable securities laws, relating, but not limited to Hunt's expectations, intentions, plans and beliefs. Forward-looking information can often be identified by the use of words such as 'anticipate', 'believe', 'expect', 'goal', 'plan', 'intend', 'estimate', 'may' and 'will' or similar words suggesting future outcomes or other expectations including the economic and production potential of its exploration projects, the completion of a final feasibility study, the exercise by Fomicruz to purchase additional interest in the new corporation, the exercise by Hunt to purchase any or all of Fomicruz's interest in the new corporation, . Such forward looking-information is based on assumptions and current expectations that involve a number of known and unknown risks and uncertainties that may cause actual results to differ materially from those expressed or implied by the forward-looking information. Factors that could cause actual results to differ materially from any forward-looking information include, but are not limited to, failure to establish estimated resources, the grade and recovery of ore which is mined varying from estimates, capital and operating costs varying significantly from estimates, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, uncertainties relating to the interpretation of the geology, continuity, grade and size estimates of mineral resources and unanticipated operational or technical difficulties and other risks and uncertainties set out in Hunt's annual and quarterly management discussion and analysis which are available at www.sedar.com.
Such forward-looking information is based on a number of assumptions, including but not limited to, the availability of financing, no significant decline in existing general business and economic conditions, the level and volatility of the price of gold, the accuracy of Hunt's resource estimates and of the geological, metallurgical, price and other assumptions on which the estimates are based. Should one or more risks and uncertainties materialize or should any assumptions prove incorrect, then actual results could vary materially from those expressed or implied in the forward-looking information and accordingly, readers are cautioned not to place undue reliance on this forward-looking information. Readers are further cautioned that the forgoing lists of risks, uncertainties, assumptions and other factors are not exhaustive. Hunt does not assume the obligation to revise or update this forward-looking information after the date of this announcement or to revise such information to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws.
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.