TSX-V: MSR
TORONTO, Feb. 4, 2021 /CNW/ - Minsud Resources
Corp. (TSXV: MSR) ("Minsud" or the
"Company") is pleased to announce that South32 has
given notice of its intention to fund exploration activities in
2021 as per the earn-in agreement between the parties entered into
on November 1, 2019 (the "Earn-in
Agreement"). The funding will be directed to further explore
Minsud's flagship Chita Valley Project in the Province of San Juan,
Argentina.
The Earn-in Agreement grants to South32 the right to acquire a
50.1% direct interest in the Company's Argentinean operating
subsidiary Minera Sud Argentina S.A.
("MSA") at the end of the earn-in period. Under the Earn-in
Agreement, South32 will provide further funding to MSA over the
next 3 years such that its aggregate funding is (i) not less than
C$7 million by December 31, 2021; (ii) not less than
C$10.5 million by December 31, 2022; and (iii) not less than
C$14 million by December 31, 2023. South32 has the right to
withdraw at the end of each year.
If South32 exercises its earn-in right it may elect to fund a
pre-feasibility study, with a minimum spend of C$41 million, which would entitle it to elect to
increase its 50.1% direct interest in MSA to 70%.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
INFORMATION:
This news release includes certain information that may
constitute forward-looking information under applicable Canadian
securities laws. 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, but not limited to:
fluctuations in the currency markets (such as the Canadian dollar,
Argentina peso, and the U.S. dollar); changes in national and local
government, legislation, taxation, controls, regulations and
political or economic developments in Canada and Argentina or other countries in
which the Company may carry on business in the future; operating or
technical difficulties in connection with exploration and
development activities; risks and hazards associated with the
business of mineral exploration and development (including
environmental hazards or industrial accidents); risks relating to
the credit worthiness or financial condition of suppliers and other
parties with whom the Company does business; presence of laws and
regulations that may impose restrictions on mining, including those
currently enacted in Argentina;
employee relations; relationships with and claims by local
communities; availability and increasing costs associated with
operational inputs and labour; the speculative nature of mineral
exploration and development, including the risks of obtaining
necessary licenses, permits and approvals from government
authorities; business opportunities that may be presented to, or
pursued by, the Company; challenges to, or difficulty in
maintaining, the Company's title to properties; risks relating to
the Company's ability to raise funds; and the factors identified
under "Risk Factors" in the Company's Filing Statement dated
April 27, 2011. 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 news 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.
SOURCE Minsud Resources Corp.