Peru Copper consolidates Toromocho land position: Adds to surface & mineral rights
October 17 2006 - 9:00AM
PR Newswire (US)
VANCOUVER, Oct. 17 /PRNewswire-FirstCall/ -- Peru Copper Inc.
(TSX:PCR / AMEX:CUP / BVL:CUP) ("Peru Copper" or the "Company)
announced today that it has finished a six-month due diligence of
the Morococha mining concessions, surface areas and assets of
Sociedad Minera Austria Duvaz S.A.C. ("Austria Duvaz") a privately
held mining company, and on October 13th entered into an option
agreement to purchase all of the mining concessions currently owned
by Austria Duvaz. The Company also announces that it has entered
into an option to purchase additional land from the Yauli community
and resolve the Pucara land claim against Centromin. Austria Duvaz
owns an estimated 225 hectares of mining concessions in the
Morococha mining district. Approximately 60 hectares are directly
adjacent to the concessions which comprise the Toromocho pit as
delineated in the Company's pre-feasibility study that was
completed earlier this year. Austria Duvaz also has a processing
plant and workers' housing in Morococha. David Lowell, the
Company's Executive Chairman, said, "We are pleased to enter into a
purchase option agreement with Austria Duvaz. These concessions
represent excellent exploration targets given their close proximity
to our Toromocho copper deposit and the Austria Duvaz concessions
to the south of Toromocho will allow us to push the pit backslopes
further to the south to access more of our own mineral resources
not currently in our mine plan as described in our pre-feasibility
study." (see news release dated March 28th 2006). "The acquisition
of the Austria Duvaz concessions is part of a very successful
program to acquire additional properties for both the planned
mining operations and the discovery of more ore which together will
significantly enhance the value of our Toromocho project." The
terms of the agreements signed today with Austria Duvaz are as
follows: Through a share purchase agreement, the Company has
acquired Minera Centenario SAC ("Centenario"), which will own 26
mining concessions and have interests in an additional 4
concessions. In exchange the Company has agreed to pay US$3.5
million to cancel Austria Duvaz debt at higher face values and to
pay an additional sum of US$8 million to the shareholders of
Centenario. Through a separate option agreement the Company will
have the right to acquire interests in an additional 30 mining
concessions of Austria Duvaz within a period of five years. In
exchange for the option, the Company will assume approximately
US$13 million of Austria Duvaz debt and pay Austria Duvaz a
business interruption fee should the option be exercised prior to
the end of the fifth year. Yauli and Pucara Community Agreements
The Company has also entered into an option to purchase 1350
hectares from the Yauli community for the deposition of tailings.
The terms of the agreement provide that the Company will contribute
an aggregate of US$650,000 towards community projects (of which
US$225,000 has been paid). The balance of US$425,000 will be paid
to the community upon the Company exercising the option on or
before October 4th, 2009. The terms for the resolution of the
dispute between Pucara and Centromin are that the Company will
provide Pucara land and improvements in equipment and facilities
valued at US$1,950,000 and issue 500,000 shares of Peru Copper
valued at the closing price of the Company's shares on October 10,
2006 or a cash payment in lieu of the shares. Mr. Lowell further
stated, "Both these community agreements were reached as a result
of establishing harmonious relations with the local population as
demonstrated by the recent vote by the townspeople of Morococha in
favor of resettlement out of the area peripheral to the Toromocho
pit. These communities all understand and support the economic and
social benefits that will come through the development of the
Toromocho copper deposit." Peru Copper is involved in the
acquisition and exploration of potentially mineable deposits of
copper in Peru. On June 11, 2003, Peru Copper entered into the
Toromocho Option Agreement ("Toromocho Option") with Empresa Minera
del Centro del Peru S.A. ("Centromin"), a Peruvian state-owned
mining company, whereby Centromin granted the Company the option to
acquire its interest in the mining concessions and related assets
of the Toromocho Project. Cautionary Note to U.S. Investors - The
United States Securities and Exchange Commission permits U.S.
mining companies, in their filings with the SEC, to disclose only
those mineral deposits that a company can economically and legally
extract or produce. We use certain terms in this press release,
such as "mineral deposit", that the SEC guidelines strictly
prohibit U.S. registered companies from including in their filings
with the SEC. U.S. Investors are urged to consider closely the
disclosure in our Form F-1 Registration Statement, File #
333-121527, which may be secured from us, or from the SEC's website
at http://www.sec.gov/edgar.shtml. Forward-Looking Statements:
Statements in this release that are forward-looking statements are
subject to various risks and uncertainties concerning the specific
factors identified in the Peru Copper Inc. periodic filings with
Canadian Securities Regulators. Such forward-looking information
represents management's best judgment based on information
currently available. No forward-looking statement can be guaranteed
and actual future results may vary materially. Peru Copper does not
assume the obligation to update any forward-looking statement. Safe
Harbor Statement under the United States Private Securities
Litigation Reform Act of 1995: Except for the statements of
historical fact contained herein, the information presented
constitutes "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Such
forward-looking statements, including but not limited to those with
respect to the price of copper, the timing of completion of
exploration activities and the determination and amount of
estimated mineral resources involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievement of Peru Copper Inc. to be materially
different from any future results, performance or achievements
expressed or implied by such forward-looking statements. Such
factors include, among others, risks related to the exploration and
potential development of the properties owned by the company, risks
related to international operations, the actual results of current
exploration activities, conclusions of economic evaluations,
changes in project parameters as plans continue to be refined,
future prices of copper, silver, molybdenum and gold, as well as
those factors discussed in the section entitled "Risk Factors" in
the Form F-1 as on file with the Securities and Exchange Commission
in Washington, D.C. Although Peru Copper Inc. has attempted to
identify important factors that could cause actual results to
differ materially, there may be other factors that cause results
not to be as anticipated, estimated or intended. There can be no
assurance that such statements will prove to be accurate as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking statements. CONTACT:
Patrick De Witt, Director of Investor Relations at (604) 689-0234
or . DATASOURCE: Peru Copper Inc. CONTACT: Patrick De Witt,
Director of Investor Relations at (604) 689-0234 or .
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