Zoro Mining Corp.
OTC Bulletin Board : ZORM

Zoro Mining Corp.

October 09, 2009 15:31 ET

Zoro Mining Executes Option Agreement for Piedra Parada and Fritis Projects, Region III, Chile

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 9, 2009) - Zoro Mining Corp. (OTCBB:ZORM) ("Zoro") is pleased to announce that, effective September 23, 2009, it has entered into a Mineral Assets Option Agreement (the "Option") with Sociedad Gareste Limitada ("Gareste") and other vendors, for the proposed acquisition by Zoro of the Piedra Parada and Fritis precious metals projects located in Chile's Atacama Region III.

The 12 Piedra Parada property mineral exploration concessions cover nearly 2900 hectares in a prototypical salar-a dry lake bed with inflow waters and subsurface brines. The project lies roughly 310 kilometers to the northeast of Copiapo, the capital of Region III, via paved highway and improved roads, and is at an elevation of over 4,000 meters. Previous work by Gareste at the project in the 1990's included surface and auger drill field testing and sampling of the sediments and inflow streams, which identified precious metal anomalies. The rights to lithium, light metals and commercial salts (collectively, the "Lithium Materials") in these concessions have been previously conveyed to a third-party, with Gareste retaining a 2% net smelter return royalty (the "NSR") on Lithium Materials together with other rights and payments. Zoro has targeted possible precious metals and platinum group metals exploration efforts relating to the inflow waters and the uplifted dry lake bed sediments.

The Fritis property consists of 8 mineral exploration concessions covering approximately 2300 hectares, located roughly 40 kilometers to the south of Copiapo, via paved highway and improved roads, and at an elevation of 500 meters. These concessions appear to be comprised of a more conventional, epithermal precious metals project. The property was previously controlled by Teck-Cominco until last year when the concessions lapsed and were acquired by Gareste, who conducted a surface sampling program in 2009 which returned anomalous gold values. Zoro has identified several areas at the concessions which could be the targets of future exploration efforts.

Zoro anticipates that, following a successful closing, Technical Reports under CSA National Instrument 43-101 will be prepared for both the Piedra Parada and Fritis properties by John Hiner, R.P.G., its Qualified Person (under Canadian securities law), who has recently visited both sites.

The Option calls for an aggregate of 19.4 million restricted common shares of the Company to be issued to Gareste and the other vendors at closing in exchange for the concessions at Fritis and Piedra Parada, and the reserved NSR on Lithium Materials and other rights of Gareste at Piedra Parada. In addition, at closing the Company will grant to Gareste alone a 2% net smelter return royalty on the proceeds of any production from each of Piedra Parada and Fritis projects, capped at US$6 million per property, one-half of which at each property can be repurchased by Zoro at any time before the commencement of commercial production at that property for the sum of US$2 million.

Closing of the Option is subject to further due diligence and customary closing conditions.

Zoro's main holdings are in the Don Beno, Escondida, Costa Rica and Rio Sur Districts in Chile, and the Yura District in Peru.

Should you have any questions or comments, please do not hesitate to contact our company at the referenced numbers below.

FORWARD-LOOKING STATEMENTS: This news release contains certain "forward-looking statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. Except for statements of historical fact relating to the company, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other ecological data, fluctuating metal prices, the possibility of project cost overruns of unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future and other factors. The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates of opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.

Contact Information

  • Zoro Mining Corp.
    Gerry Jardine
    (800) 877-1626
    Zoro Mining Corp.
    Corporate Office
    (866) 798-1839