Southern Hemisphere Mining Limited

Southern Hemisphere Mining Limited

July 13, 2011 08:40 ET

Southern Hemisphere Announces Option of New Prospective Copper Project: Llahuin

Drilling Program Commenced With Results to Follow

PERTH, WESTERN AUSTRALIA--(Marketwire - July 13, 2011) - International mining company Southern Hemisphere Mining Limited ("Southern Hemisphere" or the "Company") (TSX VENTURE:SH)(ASX:SUH) is pleased to advise that it has signed an option agreement to purchase a highly prospective copper exploration project in northern Chile.

The new project, Llahuin, comprises a group of Mining Licences located near the city of Ilapel, 250km north of Santiago.

The Llahuin Project comprises two elements: the Amapola Group of Exploitation Licences (the "Amapola Group") and the Llanos Group of Exploitation Licenses (the "Llanos Group").

Southern Hemisphere has signed an Option to purchase the Amapola Group. The terms of this agreement will result in one of the Company's 100%-owned Chilean subsidiaries becoming the 100% owner of the licenses without any encumbrances.

Under the terms of the option agreement, the Company will acquire the licenses by making staged cash payments of US$615,000 over the course of 12 months from the date of the agreement and issue shares to the value of US$1.2m, 18 months from the date of the agreement for total consideration of US$1.875m.

The Company will also enter into a separate option agreement to purchase the Llanos Group once due diligence on the licence areas is completed.

The Company has completed due diligence on the Amapola Group and commenced an initial Reverse Circulation (RC) drilling program on 1 June 2011. First results are expected shortly.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this news release. This news release has been prepared by management and no regulatory authority has approved or disapproved the information contained herein.

Contact Information

  • Southern Hemisphere Mining Limited
    Trevor Tennant
    Managing Director
    +56 (9) 7766 4688

    Media Enquiries
    Read Corporate
    Nicholas Read
    + 61 (8) 9388 1474

    Clark Kent
    Corporate Communications
    + 1 (416) 883 3838