VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 11, 2014) - Lowell Copper Ltd. (TSX VENTURE:JDL) ("Lowell Copper" or the "Company") is pleased to announce that it has entered into an agreement with Rose Petroleum PLC ("Rose Petroleum") and the wholly-owned subsidiary of Rose Petroleum, AVEN Associates LLC ("AVEN"), in respect of, amongst other things, the grant of an option (the "Option") to earn up to a 70% interest in the "TC" property located in New Mexico (the "Property").
Under the terms of the Option, Lowell Copper can acquire up to a 70% in the Property in exchange for funding US$6,250,000 in expenditures on the Property. Specifically under the terms of the Option to earn a 70% interest Lowell Copper will be required to fund aggregate expenditures of US$6,250,000 over four years, to earn the corresponding percentage interests in the Property as follows:
- a 25% interest in the Property by funding US$250,000 of expenditures;
- a 51% interest in the Property by funding the next US$2,500,000 of expenditures; and
- a 70% interest in the Property by funding the next US$3,500,000 of expenditures.
Upon Lowell Copper earning a 51% interest in the Property then the parties will enter into a joint venture agreement and further funding for the Property will be based on the percentage interests in the Property of Lowell Copper and Rose Petroleum. The parties will also agree on a form of standard dilution calculation to be included in the joint venture agreement that will be applied to a party if one party does not commit to further funding or partial funding of work on the Property.
Under the terms of the Option if a party's interest is reduced to below a 10% interest in the Property than that party's interest will be converted to a 1% free carried interest in the Property.
The TC Property
The TC Property is comprised of a group of claims located along the Hillsboro - Bisbee mineral trend in New Mexico.
Rocks of post-mineral age, consisting of Tertiary volcanic rocks and recent gravels, separate two areas of previous mining activity. These post-mineral rocks cover an area about 2 miles wide by 6 miles. Gravity data, supported by the geometry of the pre and post-mineral rocks suggest that drilling could intersect pre-mineral rocks at relatively shallow depth.
Previous mining activity in pre-mineral rocks east of the target area is limited to small pits and cuts opened to test alteration and mineralization confined to narrow, discontinuous fractures. Mining activity on the west side of the covered target area has been more extensive.
David Lowell, Chairman and CEO of Lowell Copper remarked, "The size of the covered area is such that one to two drill holes could very quickly reveal whether there is the potential for buried mineralization."
About Lowell Copper
Lowell Copper is a copper exploration and development focused company led by J. David Lowell and is listed on the TSX-V. The Company was founded to leverage the current market conditions and build a portfolio of economic copper projects through a combination of exploration, mergers and acquisitions by utilizing the considerable experience and success of management and directors of the Company.
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 ADEQUACEY OR ACCURACY OF THIS RELEASE.
J. David Lowell, the Company's Chairman and Chief Executive Officer is the Qualified Person as defined under National Instrument 43-101 is responsible for the technical disclosure in this news release.
This release contains certain "forward looking statements" and certain "forward-looking information" as defined under applicable Canadian and U.S. securities laws. Forward-looking statements and information can generally be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "continue", "plans" or similar terminology. Forward-looking statements and information include, but are not limited to, statements with respect to the transactions contemplated under the Option and any proposed exploration activities and their timing and potential mineralization. Forward-looking statements and information are based on forecasts of future results, estimates of amounts not yet determinable and assumptions that, while believed by management to be reasonable, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Forward-looking statements and information are subject to various known and unknown risks and uncertainties, many of which are beyond the ability of Lowell Copper to control or predict, that may cause Lowell Copper's actual results, performance or achievements may be materially different from those expressed or implied thereby, and are developed based on assumptions about such risks, uncertainties and other factors set out here in, including but not limited to: risks and uncertainties related to the Option not being completed in the event that the conditions precedent thereto are not satisfied; the inherent risks involved in the exploration and development of mineral properties; the uncertainties involved in interpreting exploration data; the potential for delays in exploration or development activities; the geology, grade and continuity of mineral deposits; the possibility that future exploration, development or mining results will not be consistent with the either company's expectations; accidents, equipment breakdowns, title matters, labor disputes or other unanticipated difficulties or interruptions in operations; fluctuating metal prices; unanticipated costs and expenses; uncertainties relating to the availability and costs of financing needed in the future; the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations; currency fluctuations; regulatory restrictions, including environmental regulatory restrictions; liability, competition, loss of key employees and other related risks and uncertainties. Lowell Copper does not undertake an obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.