Camino Minerals Corporation Signs Purchase of Rights Agreement With Silver Standard Resources Inc.
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 02/27/12 -- Camino Minerals Corporation (TSX VENTURE: COR) ("Camino" or the "Company") is pleased to announce that it has entered into a Purchase of Rights Agreement (the "Agreement") with Silver Standard Resources Inc. ("Silver Standard") (TSX: SSO)(NASDAQ: SSRI) pursuant to which the Company has agreed to acquire the back-in right that Silver Standard holds with respect to each of the El Rincon Gold Project and the Mecatona Gold-Silver Project, and Silver Standard's right of first offer with respect to the Rodeo Gold Project (collectively, the "Rights").
Subject to the terms and conditions of the Agreement, Silver Standard has agreed to transfer the Rights to Camino and, as consideration for the transfer of the Rights, Camino has agreed to issue to Silver Standard five hundred thousand (500,000) of its common shares at a price per share equal to the closing market price on the trading day prior to the date of issuance. The completion of the transaction remains subject to the approval of the TSX Venture Exchange.
"Eliminating the back-in right at Mecatona makes the project that much more attractive for us to advance," said Gordon Davis, Camino's Chairman and CEO. "Our shareholders will now have 100% exposure to any exploration success at Mecatona."
Mecatona Gold-Silver Project
Mecatona is located 20 kilometres south of the city of Parral, a historic precious metals mining district. The project is comprised of 7 mineral claims covering 5,300 hectares (20.5 square miles) and is accessed by paved and gravel roads.
In the Mecatona district, basal Lower Cretaceous sediments are overlain by Tertiary volcanic and associated minor granitic intrusive rocks. The property geology is dominated by Tertiary flow-banded rhyolites (rhyodacites) with minor rhyolitic flow breccias.
Preliminary mapping and rock sampling at Mecatona have outlined a broad north-northwest trending vein swarm and alteration corridor which has yielded strong gold, silver and base metal lithogeochemical anomalies. Mecatona holds the potential for the discovery of bulk-tonnage gold/silver mineralization. Initial exploration activities will include surface sampling and mapping.
In 2012, Camino will look to create shareholder value by leveraging its strong management team and balance sheet, approximately CAD$3.0 million in the treasury, and by further advancing its 100% owned Maijoma Claim Group, a large grassroots precious and base metals prospect located in northern Chihuahua State, and its Mecatona Gold-Silver Project, also located in Chihuahua State. In addition, the Company recently signed a letter of intent (see news release dated February 21, 2012) with Arcelia Gold Corp., in respect of the acquisition of up to an 80% interest in the El Secreto Gold, Silver and Copper Project, located in Sinaloa State, Mexico, and is currently negotiating the terms of a definitive option agreement.
About Camino Minerals Corporation
Camino is a new, well-funded mineral exploration company that was formed in connection with Goldcorp's C$300-million acquisition of Canplats Resources Corp. Camino is led by Canplats' former management and is focused on precious and base metal projects located in Mexico. For more information on Camino's properties and associated agreement terms, please refer to the Company's website at www.caminominerals.com.
The technical information contained in this news release has been reviewed and approved by Richard Dufresne, P.Geo., Camino's V.P., Exploration, a "Qualified Person" as defined under National Instrument 43-101.
To receive Camino's news releases, contact Blaine Monaghan, V.P., Corporate Development, at firstname.lastname@example.org or (866) 338-0047.
Cautionary Note Regarding Forward-Looking Statements
Statements contained in this news release that are not historical fact are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995 and forward-looking information under the provisions of Canadian securities laws (collectively, "forward-looking statements"). Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from estimated results. Such risks and uncertainties include, but are not limited to, the Company's ability to raise sufficient capital to fund exploration, changes in economic conditions or financial markets, changes in prices for the company's mineral products or increases in input costs, litigation, legislative, environmental and other judicial, regulatory, political and competitive developments in Mexico, technological and operational difficulties or inability to obtain permits encountered in connection with exploration and development activities, labour relations matters, and changing foreign exchange rates, all of which are described more fully in Camino's filings on SEDAR. The Company undertakes no obligation to publicly update or otherwise revise any forward-looking statements, whether as a result of new information, future events or other factors, except as required by law. Readers are cautioned not to place undue reliance on forward-looking statements.
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.
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