VANCOUVER, BRITISH COLUMBIA–(Marketwired – Feb. 8, 2016) – Revelo Resources Corp. (“Revelo” or the “Company”) (TSX VENTURE:RVL) is pleased to announce that it has signed an Option and Sale Agreement (the “Agreement”) with Guanaco Cia. Minera SpA, a wholly owned Chilean subsidiary of Austral Gold Limited (ASX:AGD) (“Austral”), whereby Austral will have the sole and exclusive option and right to acquire a 100% undivided interest in Revelo’s 12,500 hectare San Guillermo project (the “Project”), located in Northern Chile, by paying Revelo a total of US$2.65 million over three years (out of which US$ 2 million is the optional payment in year 3 to fully acquire the Project) plus spending US$ 3 million on exploration over the same time frame of three years. Revelo will also retain a royalty on any future production from the project.
Tim Beale, President & CEO of Revelo, had the following comments about the deal. “Revelo has been diligently pursuing third party deals to advance its portfolio of projects and to add to the joint venture agreement already signed with Newmont Mining. This deal with Austral provides cash to Revelo and exploration investment in the ground to advance the project, as well as developing Revelo’s nascent future royalty portfolio. Both Revelo and Austral believe that San Guillermo has potential to host extensions to the vein systems at the Amancaya project owned by Austral. Previous drilling at San Guillermo resulting in several mineralized intercepts supports this thesis (see project Fact Sheet on Revelo website for details). We are pleased to be partnering with Austral and we look forward to them advancing exploration at San Guillermo. Identifying the right partner and sealing a deal in the current market requires considerable patience, but we are determined to deliver more such deals in the months to come.”
ABOUT THE AGREEMENT
Austral has the irrevocable right to earn a 100% interest in the San Guillermo Project by executing a three year exploration program and committing to a three year cash payment plan as outlined below:
|Signing of the Agreement||• Cash Payment to Revelo of US$ 50,000
• Repayment to Revelo of the 2015 land maintenance fees
|First Year||• Exploration Work Commitment: US$ 500,000;|
|First Anniversary||• Cash Payment to Revelo of US$ 50,000|
|Second Year||• Exploration Work Commitment: US$ 1,250,000|
|Second Anniversary||• Cash Payment to Revelo of US$ 550,000|
|Third Year||• Exploration Work Commitment: US$ 1,250,000|
|Third Anniversary||• Cash Payment to Revelo of US$ 2,000,000|
Should Austral fail to complete any of the above indicated payments or investments, or otherwise abandon the Agreement, the project will revert 100% to Revelo, with Austral obliged to deliver all exploration data and results up to the point of abandonment.
Austral will be responsible for funding the property maintenance costs during the term of the Agreement.
Additionally, the Agreement provides for Austral to take responsibility for the payment of underlying existing royalties to both Minera Fuego and SQM (see Revelo website project page for further details) on any and all future production from the project.
Revelo will also retain a 0.5% NSR royalty on all metals produced from the project. For those areas subject to the underlying SQM royalty, Austral has the right to reduce the Revelo royalty in those areas only (790 hectares out of the total 12,500 hectares), to 0.25%, by making a one-time cash payment to Revelo of US$ 250,000.
ABOUT THE SAN GUILLERMO PROJECT
The San Guillermo project is strategically located along the highly productive “Paleocene” Mineral Belt in northern Chile that contains several important gold, silver and copper mines and projects. Numerous indications of gold and silver mineralization occur on the property, including several drill intercepts. The project surrounds the Amancaya precious metals mining project of Austral.
San Guillermo consists of approximately 12,500 Ha of 100% owned tenement comprising both exploration and mining concessions, all of which were acquired from Minera Fuego (see Revelo website project page for further details).
Significant portions of the property are characterized by large, post-mineral, gravel-covered pampas, where surface geochemistry, float mapping, trenching and geophysics are the main exploration tools prior to drilling. Exploration activities to date have included geological mapping of outcropping areas; restricted areas of surface MMI geochemical sampling grids; trenching of some geochemical anomalies; limited areas of geophysical coverage including magnetics and IP; and drill testing (41,000 m of drilling was completed in several phases) of several widely spaced targets. Surface geochemical sampling and pH analyses have been extended across the property and additional geological mapping of outcrops and trenches has been carried out. Historic data and newly acquired data have been recompiled and target models have been refined. Drill results suggest significant potential for mineralised epithermal veins of the type sought, along trend from the defined resource at Amancaya. A number of untested targets and extensions remain.
San Guillermo is easily accessed, being located within a short driving distance from the Pan-American Highway along a well-maintained dirt road, some 3 hours’ drive from Antofagasta and 1 1/2 hours from Taltal. The property is situated at modest altitudes ranging from around 1,900 m to 2,100 m.
ABOUT AUSTRAL GOLD
Austral Gold Limited is listed on the Australian Securities Exchange (ASX:AGD) and is a growing precious metals mining and exploration company building a portfolio of assets in South America. The Company’s flagship Guanaco project in Chile is a low-cost producing mine with further exploration upside. With an experienced and highly regarded major shareholder, Austral Gold is strengthening its asset base by investing in new precious metals projects in Chile and Argentina that have near-term development potential. For more information, please consult the company’s website www.australgold.com.au.
Revelo is building a sustainable exploration business focused on securing prospective land along the prolific mineral belts of northern Chile, and by implementing effective exploration and capital management strategies to grow, advance and de-risk its portfolio to provide shareholders with multiple opportunities for exploration success.
Revelo controls more than 350,000 hectares of 100% owned exploration tenement along proven mineral belts in northern Chile. The portfolio is comprised of 21 high-quality exploration projects prospective for copper, gold and silver including the Montezuma project already under JV agreement with a subsidiary of Newmont Mining. In addition, Revelo retains a 2% royalty interest in the Victoria Project, an important copper-gold-silver exploration project in northern Chile.
Revelo is listed on the TSX Venture Exchange (TSX VENTURE:RVL). For more information please visit Revelo’s website at www.reveloresources.com.
Dr. Demetrius Pohl, Ph.D., Certified Professional Geoscientist (CPG), an independent consultant, is the Company’s Qualified Person for the purposes of National Instrument 43-101 Standards of Disclosures for Mineral Projects of the Canadian Securities Administrators, and has approved the written disclosure of the technical information contained in this news release.
ON BEHALF OF THE BOARD
Timothy J. Beale, President & CEO
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
This news release contains certain statements that may be deemed “forward-looking statements”. All statements in this release, other than statements of historical fact, that address events or developments that Revelo expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential”, “indicate” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur. Although Revelo believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward-looking statements.