VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 9, 2012) - Condor Resources Inc. ("Condor" or the "Company") (TSX VENTURE:CN) is pleased to announce that its Chilean subsidiary, Minera Condor Limitada, has completed a definitive agreement (the "Agreement") with BHP Billiton regarding Condor's 46 sq km Cristal project in northern Chile. Cristal is near the Peruvian border and is located along the West Fissure fault system, host to the majority of Chile's large porphyry copper deposits, including the nearby Collahuasi, Ujina and Quebrada Blanca porphyry copper mines.
Under the Agreement, BHP Billiton have an exclusive option to earn 65% ownership of a joint stock company created to hold the Cristal concessions by completing cumulative exploration expenditures of US$18.0 million over four years, with defined minimum annual work expenditures. The Agreement stipulates a mandatory first year work commitment of US$500,000, which includes an initial cash payment of US$60,000.
BHP Billiton have the option to extend the initial earn-in period by one year by making a one time cash payment of US$300,000.
Upon earning their initial 65% interest, BHP Billiton have the additional option to increase their ownership in the joint stock company to 75%. In order to exercise the second option, BHP Billiton are required to complete a further US$7.0 million in exploration at Cristal (for a cumulative exploration expenditure of US$25.0 million) within two years of acquiring their 65% ownership.
BHP Billiton, at their option, may satisfy any or all of the US$25.0 million exploration expenditure commitments by making cash payments to Minera Condor Limitada in lieu thereof.
Patrick Burns, President and CEO of Condor said, "We are very pleased to conclude this Agreement with BHP Billiton, and are delighted that they will be committing their significant exploration, development and operating expertise to Cristal. We have always believed in the potential of this project, and we feel this Agreement validates our belief."
Condor Resources Inc. was incorporated in 2003 by field exploration specialists focused on the generation of precious and base metals projects in South America, where management has extensive experience and a proven track record of discovery. The Company's long term objective is the discovery of a major new precious/base metals deposit and its business plan offers shareholders access to an exciting portfolio of fifteen properties in Peru and Chile, each offering a unique path to discovery.
ON BEHALF OF THE BOARD
Patrick J. Burns, President & Chief Executive Officer
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