TSX-V: MSR
TORONTO, Nov. 27,
2023 /CNW/ - Minsud Resources Corp. (TSXV:
MSR) ("Minsud" or the "Company") is pleased to
announce that, further to the Company's press release dated
April 13, 2023, Minsud Argentina Inc.
("MAI"), a wholly owned subsidiary of the Company, has
exercised its Cash-In Option (as described below) relating to
South32 Aluminium (Holdings) Pty Ltd.'s ("South32") earn-in
right to acquire a 50.1% ownership interest (the "Earn-In
Right") in Minera Sud Argentina
S.A. ("MSA"), Minsud's indirect Argentinian
subsidiary that holds and operates the flagship Chita Valley
Project. The Earn-In Right, granted by the earn-in agreement
between South32 and Minsud dated November 1,
2019, as amended (the "Earn-In Agreement"), was
exercised by South32 on April 13,
2023 and the acquisition of South32's 50.1% ownership
interest in MSA is expected to be completed on or around
February 14, 2024
("Completion").
Under the Cash-In Option South32 shall, in accordance with the
Earn-In Agreement, subscribe at Completion for shares representing
a 50.1% ownership interest in MSA (the "MSA Shares") in
consideration for South32's already funded initial capital
contributions to MSA of C$14 million
("South32's Initial Capital Contribution"). No further
payment will be made to MSA for South32's subscription of MSA
Shares. Further, MAI will not be obliged to contribute any amount
to an approved program and budget for the Chita Valley Project
until the aggregate of South32's Initial Capital Contribution and
the amounts contributed and funded by South32 in respect of MSA
approved programs and budgets following South32's Initial Capital
Contribution equals C$42 million.
At Completion, MAI and South32 will enter into a shareholders'
agreement to govern the management and operation of MSA;
operational activities will include further exploration and, if
economically feasible and approved by the MSA board, the
development and exploitation of the Chita Valley Project. Until
Completion, MAI shall continue to manage and operate MSA and,
therefore, the Chita Valley Project.
About the Chita Valley Project,
San Juan Province:
The Chita Valley Project is a large exploration stage porphyry
system with classic alteration features, widespread porphyry style
Cu-Mo-Au and polymetallic Ag-Pb-Zn mineralization hosted by
Hydrothermal Phreatic Breccias and associated gold and
silver-bearing polymetallic veins of intermediate sulfide
composition that conformed an outcropping porphyry system at Chita
and a lithocap of a porphyry system at Chinchillones. San Juan
Province of Argentina has a robust mining sector and recognizes the
important economic benefits of responsible development of its
substantial Mineral Resource endowment.
About Minsud Resources
Corp.
Minsud is a mineral exploration company focused on exploring its
flagship Chita Valley Cu-Mo- Au-Ag-Pb-Zn Project, in the Province
of San Juan, Argentina. The Company also holds the early stage La
Rosita project comprising of 6,000 ha in Santa Cruz Province, Argentina. The Company's
shares are listed on the TSX-V under the trading symbol "MSR", and
on the OTCQX under the symbol "MDSQF".
About South32
South32 is a globally diversified mining and metals company. The
company's purpose is to make a difference by developing natural
resources, improving people's lives now and for generations to
come. South32 is trusted by its owners and partners to realize the
potential of their resources. South32 produces commodities
including bauxite, alumina, aluminium, copper, silver, lead, zinc,
nickel, metallurgical coal and manganese from its operations in
Australia, Southern Africa and South America. With a focus on growing its
base metals exposure, South32 also has two development options in
North America and several
partnerships with junior explorers around the world.
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 and in other Company
disclosures available on www.sedar.com. 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.