Revelo Sells San Guillermo and Reprado Gold-Silver Projects to Austral Gold
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jul 17, 2017) - Revelo Resources Corp. ("Revelo" or the "Company") (TSX VENTURE:RVL) is pleased to announce that it has signed a Letter of Intent ("LOI") with Austral Gold Ltd. ("Austral") (TSX VENTURE:AGLD), allowing Austral to purchase Revelo's gold-silver projects at San Guillermo and Reprado located in northern Chile, in exchange for common shares in Austral and a royalty on future production from the projects. The agreement is subject to due diligence and the signing of definitive documentation in Chile within 90 days and regulatory and exchange approvals.
The LOI allows Austral to gain a 100% interest in the San Guillermo and Reprado projects in exchange for:
- 10,000,000 common shares in Austral, currently valued at approximately C$1.5M;
- A value cap of US$2.11M will be applied to the transaction, and the number of shares correspondingly reduced should AGLD's volume-weighted average market price ("VWAP") on the Toronto Venture Exchange (TSX VENTURE:AGLD) for the twenty (20) trading day period ending on the last trading day immediately prior to the Completion Date, cause the value of the transaction to exceed this amount;
- 1% NSR Royalty on future production at Reprado; and
- 0.5% NSR Royalty on future production at San Guillermo.
The existing Option, Sale and Royalty Agreement between Revelo and Austral relating to the San Guillermo project (See Company's news release dated February 8, 2016) will be cancelled concurrent with the signing of the definitive sale agreement. Austral will also assume responsibility for paying underlying NSR production royalties at San Guillermo to Minera Fuego and SQM in Chile, and an underlying NSR production royalty at Reprado to Teck in Chile.
Tim Beale, President and CEO of Revelo, commented: "This is an important development for Revelo as it shows how we plan to advance the Company's portfolio by identifying distinctive strategies for each of our projects. Austral is a dynamic, junior precious metals producer, with significant potential for growth in Chile and Argentina. Revelo is now linked to Austral's future success, and we believe that further collaborations may be possible in the future."
ABOUT SAN GUILLERMO AND REPRADO
San Guillermo and Reprado are located along the Paleocene mineral belt in central-northern Chile, in a similar geological setting to, and some 120 km south-southwest of, the important precious metals mineral district at El Peñon (Yamana Gold), which has produced several million ounces of gold and hundreds of millions of ounces of silver over the last 20 years or so. The projects are located some 66 km east-southeast and east respectively of the coastal town of Taltal, at modest altitudes, close to the Pan-American Highway, and have easy access.
Both San Guillermo and Reprado comprise geologic extensions to the Amancaya precious metals vein deposits where Austral's newest gold-silver mine is slated to produce approximately 50,000 gold equivalent oz per year. Amancaya and its extensions represent an emerging epithermal gold-silver quartz-vein district with geological similarities to the El Peñon mining district to the north. The properties are prospective for high-grade, vein-style, epithermal precious metals mineralisation of low-sulphidation type, and several low-sulphidation epithermal (quartz-adularia-illite related) gold and silver vein targets occur on both properties, and in both cases have in part been tested by historic trenching and drilling with encouraging results.
San Guillermo surrounds Amancaya and is host to demonstrable extensions to the precious metals vein district emerging at Amancaya, with several high-grade veins cut in drill holes to the north and south on Revelo's property. The Reprado project area is centred less than 20 km due north and lies directly along trend from the centre of the vein district at Amancaya and San Guillermo, and is also host to mineralised precious metals veins cut in trenches and shallow, historic drill holes (See Company's news releases dated December 14, 2015 and December 21, 2015).
For further details please refer to the San Guillermo and Reprado project pages on Revelo's website (San Guillermo and Reprado).
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.
Revelo has consolidated an outstanding portfolio of 26 projects prospective for copper, gold and silver located along proven mineral belts in one of the world's top mining jurisdictions - Chile. Revelo's total exposure to mineral tenements in northern Chile is around 300,000 hectares. Revelo has signed an LOI with Hochschild Mining plc for an Option, Sale and Royalty Agreement at its Loro gold-silver project, and has also signed the LOI subject of this news release with Austral Gold Ltd. for its San Guillermo and Reprado projects.
Revelo is a Canadian company and is listed on the TSX Venture Exchange (TSX VENTURE:RVL). For more information, please visit Revelo's website at www.reveloresources.com.
Austral Gold Ltd. is a growing precious metals mining, development and exploration company building a portfolio of quality assets in Chile and Argentina. The Company's flagship Guanaco project in Chile is a low-cost gold and silver producing mine with further exploration upside. Austral commenced open-pit mining operations at Amancaya in 2017. Amancaya is 75km from the Guanaco processing plant, where the Company intends to transport production. A PFS completed in mid-2017 showed robust financial performance is expected from operating both operations as a combined operation, with five years of mine life from reserves. The Company also owns 70% and is operator of the underground silver-gold Casposo mine in San Juan, Argentina. With an experienced local technical team and highly regarded major shareholder, Austral's goal is to continue to strengthen its asset base through acquisition and discovery. Austral Gold Ltd. is listed on the TSX Venture Exchange (TSX VENTURE:AGLD), and the Australian Securities Exchange (ASX:AGD). For more information, please consult the company's website: www.australgold.com
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.
To view the Location of San Guillermo and Reprado in Relation to the Amancaya Mine, please visit the following link: http://media3.marketwire.com/docs/1099163_Figure1.jpg
Revelo Resources Corp.
Investor Relations Manager
+1 604 687-5544