VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 11, 2012) - Sundance Minerals Ltd. ("Sundance" or the "Company") is pleased to announce that it has entered into an option agreement ("Agreement") with Exploraciones Global S.A. de C.V. ("Global"), a subsidiary of Mercator Minerals Ltd. ("Mercator"), whereby Sundance can earn up to a 70% interest in a 700 hectare portion of their Meztli 4 claim ("Property") located in northern Sonora State, Mexico. The land optioned will link Sundance's San Ricardo claim block with a larger group of Sundance's claims that surround Meztli 4 and San Ricardo claims on the north and west. Sundance's total land position including the portion of Meztli 4 under Agreement is now 38,100 hectares.
The San Ricardo property, located 43 km southwest of Yamana's Mercedes mine, 57 km southeast of Timmins Gold's San Francisco mine and 10 km north of Mercator's Creston molybdenum deposit, hosts gold mineralization in granite and is, in turn, currently optioned to Paget Minerals Corporation by the Company (see news release dated September 11, 2012).
Under the Agreement, Sundance can earn 51% of the Property by making an initial payment of US$25,000 and a work expenditures of US$250,000 over a three year period. Sundance may earn an additional 19%, for a total of 70% by making a cash payment of US$150,000 and funding US$2,000,000 aggregate in work over an additional two year period.
Once Sundance has earned a 70% interest in the Property, the parties shall elect to participate in the exploration program on a prorated basis or not. In the event either party dilutes below 9%, it shall be entitled to a 2% Net Smelter Return royalty ("NSR"). Sundance will have the right to purchase 1% of the NSR for US$1.5 million.
Sundance believes that the additional land from Global will increase our flexibility in fully exploring the gold mineralization found at San Ricardo. The costs of acquisition and work on the Property will be paid by Paget Minerals, Sundance's joint venture partner in the San Ricardo property.
Sundance Minerals is an exploration company currently focusing on precious and base metal projects in Mexico and the United States. Our mission is to create and sustain shareholder value by developing a balanced portfolio of exploration targets in known districts.
Certain statements in this News Release constitute "forward looking statements" that reflect the Company's current expectations and projections about its future results. Forward-looking statements involve various risks and uncertainties and are based on certain factors and assumptions. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations include the continued participation of Paget in the San Ricardo project and other factors of the mineral exploration industry more fully described in the Company's Management Discussion & Analysis of Financial Position and Results of Operations, which is available on SEDAR at www.sedar.com. The assumptions made in developing the forward-looking statements include the following: the continued participation of Paget in the San Ricardo project, and the availability of equipment and qualified personnel to advance the San Ricardo project. Readers are cautioned not to place undue reliance on the forward-looking statements contained in this news release. Except as required by law, the Company assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason.
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.