TORONTO, ONTARIO--(Marketwire - Aug. 3, 2012) - Minsud Resources Corp. (TSX VENTURE:MSR) ("Minsud" or the "Company") is pleased to announce that Minera Sud Argentina S.A. ("MSA"), the Company's Argentine subsidiary, has exercised its option to purchase the Chita Property (the "Purchase Option"), a property controlled pursuant to a purchase option agreement executed on September 28, 2006 between the owners of the Chita Property and MSA (the "Chita Agreement"). The Chita Property represents the main property in the Company's flagship Chita Valley Project. A copy of the Chita Agreement is available under the Company's profile on www.sedar.com.
The exercise of the Purchase Option, and the conditions under which the Purchase Option was exercised, were accepted by the owners of the Chita Property on the date hereof. As a result, the 100% interest in the Chita Property will be transferred to MSA within the next 90 days.
In consideration for the transfer of the Chita Property, MSA has agreed to pay a total amount of US$420,000 (the "Purchase Price"), payable as follows: (i) US$30,000 in cash within 10 days from the date on which the property owners accepted MSA's exercise of the Purchase Option; (ii) US$40,000 in cash simultaneously with the execution of the public deed evidencing the transfer of the Chita Property to MSA; and (iii) US$350,000 in 10 semi-annual payments of US$35,000 each, the first of which shall be payable 6 months after the date of execution of the above mentioned public deed.
Should the current or future foreign exchange restrictions imposed in Argentina limit or impede MSA's ability to purchase United States Dollars in order to make the agreed payments, MSA shall have the right to pay such sums in Argentine Pesos, at the exchange rate published by the National Bank of Argentina (Banco de la Nación Argentina).
No net smelter return or other similar right has been nor shall be granted to the Chita Owners.
Carlos Massa, Minsud's President and CEO, states: "Minsud has made a great step ahead by acquiring a 100% interest in the Chita Property, which contains, among others targets, the Chita porphyry (Cu-Mo-Au-Ag). Chita is also the core property in the Chita Valley Project where MSA controls two adjacent areas of high interest, namely Brechas Vacas and Minas de Pinto."
About Minsud Resources Corp.:
Minsud is a mineral exploration company focused on exploring its flagship Chita Valley Project, primarily for gold, silver and copper in San Juan Province, as well as advancing its La Rosita gold and silver project at the Deseado Massif - Santa Cruz Province, Argentina. The Company also holds a 100% owned portfolio of selected early stage prospects, approximately 60,000 hectares distributed within the Provinces of Santa Cruz, Chubut and Rio Negro, Argentina.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION:
This news release includes certain information that may constitute "forward-looking information" under applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements about strategic plans, spending commitments, future operations, results of exploration, anticipated financial results, future work programs, capital expenditures and objectives. Forward- looking-information is necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information, including the risks identified in the Company's TSXV Filing Statement dated April 27, 2011 under the heading "Risk Factors". There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking-information contained in this press release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
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.