Northern Peru Copper Corp.

Northern Peru Copper Corp.

June 21, 2005 17:22 ET

Northern Peru Signs Joint Venture Agreement with JOGMEC on Pashpap, Peru

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 21, 2005) - Northern Peru Copper Corp (TSX:NOC) is pleased to announce that it has signed an agreement with the Japan Oil, Gas and Metals National Corporation ("JOGMEC") to grant JOGMEC an option to earn a 51% participating joint venture interest in Northern Peru's Pashpap copper/molybdenum property in Peru.

The terms of the agreement require JOGMEC to complete a minimum of US$5 million on exploration on the property (at least $0.5 million in year 1), including a minimum of 25,000 meters of drilling, and pay annual administrative costs of US$50,000 to Northern Peru over a 4 year period to earn its 51% ownership interest. Upon JOGMEC meeting its investment obligations, both parties will be responsible for funding their pro-rata share of the costs necessary to continue to advance and develop Pashpap. Should either party not wish to continue to fund its obligations then its interest will be diluted accordingly until it is less than 20%, whereupon it will automatically convert to a 2% Net Smelter Return royalty (NSR).

Marshall Koval, CEO and President said, "We are pleased to have JOGMEC as a partner to help advance and develop Pashpap. This agreement will allow management to focus its efforts on advancing and developing the Galeno property with the knowledge that it has a strong partner focused on advancing Pashpap at the same time."

Pashpap is an advanced exploration project located in the Ancash Department of Peru. The property contains an "Andean style" porphyry copper hydrothermal system that has at least five porphyry centers, of which only one has seen extensive exploration. A relevant historic mineral resource estimate on that porphyry, determined prior to the application of NI 43-101, is 101.4 million tonnes at 0.64% Cu and 0.049% Mo at a 0.4% Cu cut off grade.

This transaction is subject to exchange and regulatory acceptance.


Marshall Koval, CEO & President

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