Attached files
| file | filename |
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| 8-K - MAINBODY - CONSTITUTION MINING CORP | mainbody.htm |
| EX-10.1 - EX101 - CONSTITUTION MINING CORP | ex101.htm |
Constitution
Mining Signs Agreement to Expand Peruvian Gold Sands Project
Lima, Peru – January 26, 2010 -
Constitution Mining Corp. (CMIN.OB) announces it has signed an option to
acquire an additional 79 square kilometers (30.5 square miles) of mining
concessions in Peru, thereby increasing the Company’s overall land position in
the area to 461 square kilometers (178 square miles). The newly
optioned properties extend both the southern and northern property boundaries of
CMIN’s existing Gold Sands project.
Constitution
Mining CEO, Dr. Michael Stocker stated, “After completing a detailed assessment
of recent geological results reported by teams exploring in the northern and
southern regions of our existing property package, we determined it to be in
Constitution’s best interest to immediately secure both the northern and
southern extensions to our Gold Sands project.”
Dr.
Stocker continued, “Current exploration results, in combination with previously
completed work, continue to indicate the potential of our Gold Sands project to
host what we believe are significant layers of alluvial gold deposits,
stretching from the mouth of the Manseriche gorge for tens of kilometers south.
Today we secured what we believe may be one of the richest concessions in the
entire Gold Sands district – the northern extension to our existing property -
which runs right up into the mouth of the gorge where the heavier concentrations
of gold nuggets are believed to be located.”
Terms
of The Deal
On
January 25th 2010, the Effective Date, Constitution Mining (“CMIN”) entered into
a Mineral Right Option Agreement with Temasek Investments Inc. (“Temasek”) to
acquire three separate options from Temasek, in certain mineral rights in Peru
(the “Mineral Rights”), thus potentially resulting in our acquisition of 100% of
the Mineral Rights.
On
signing, CMIN agreed to issue, within 30 business days from the Effective Date,
500,000 shares of our common stock to Temasek. CMIN may exercise the
initial option to acquire a thirty-three percent (33%) interest in the Mineral
Rights by paying $250,000 and issuing 1,000,000 shares of our common stock to
Temasek within twelve (12) months from the Effective Date.
CMIN may
exercise the second, thirty-three percent (33%) option, which would result in
its acquisition of a 66% interest in the Mineral Rights, within twenty-four (24)
months of the Effective Date, by paying an additional $1,000,000 and issuing
1,000,000 additional shares of its common stock to Temasek.
CMIN may
exercise the final, thirty-four percent (34%) option, which would result in its
acquisition of a 100% interest in the Mineral Rights, within thirty-six (36)
months of the Effective Date, by paying an additional $2,000,000 and issuing
2,000,000 additional shares of our common stock to Temasek.
If and
when CMIN completes the acquisition of a 100% interest in the Mineral Rights
pursuant to the Mineral Rights Option Agreement, Temasek is entitled to an
annual 2.5% Net Returns Royalty (NSR) from CMIN. However, if CMIN
pays Temasek $2,000,000 within ninety (90) days of its acquisition of a 100%
interest in the Mineral Rights, Temasek will only be entitled to an annual NSR
of 1.5%.
If CMIN
exercises the second, thirty-three percent (33%) option in a timely manner,
which would result in its acquisition of a 66% interest in the Mineral Rights,
but fails to acquire a 100% interest in the Mineral Rights, CMIN and Temasek
will form a 66 % CMIN and 34% Temasek joint venture in which CMIN will be wholly
responsible for developing a feasible mining project and all necessary
facilities. In this case, Temasek shall retain a 34% carried interest
in the mining rights. If CMIN does not develop a feasible mining
project within three years of the Effective Date, CMIN will be responsible to
pay Temasek an advance minimum mining royalty of $500,000 per year, which will
be deducted from Temasek's net return royalty.
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About
Constitution Mining Corp.
Our goal
is to locate large-scale, commercially viable gold deposits and continuously
increase the amount of gold underlying each of our outstanding
shares. We are interested primarily in geographical areas that are
home to several significant proven gold deposits, including highly prospective
districts likely to hold further large deposits.
Our first
and most active project is in the Gold Sands region of Peru, where we hold
options on 461 square kilometers (178 square miles) of mining property, which we
believe is the largest such block in the district.
The Gold
Sands of Peru were laid down by eons of alluvial erosion. For
millions of years, the waters of the Santiago and the Marañón rivers have been
carving their way through the gold-rich mountain canyons of the Andes, carrying
off vast amounts of gold and depositing much of the treasure in loose gravels
and sands - Gold Sands - in the area the Company now controls.
Results
from test holes drilled a decade ago indicated a potential presence of
significant alluvial gold. The Company is now engaged in a program of
pitting and test-mining with the intention to confirm and extend those earlier
results and to gather further data for determining the feasibility of
large-scale mining of this vast resource.
The
implementation of these programs will require the company to secure additional
financing.
Further
information about Constitution Mining Corp may be found at www.ConstitutionMining.com
On
behalf of the Board:
Dr.
Michael Stocker – Chairman of the Board
Constitution
Mining Corp. (CMIN.OB)
Investor
Inquiries:
Toll
Free: 888-475-0070
Direct
Dial: 646-755-3352
Email:
Info@ConstitutionMining.com
Disclaimer: This release contains
forward-looking statements that are based on the beliefs of Constitution Mining
Corp. management and reflect Constitution Mining Corp. current expectations as
contemplated under Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities and Exchange Act of 1934, as
amended. When used in this release, the words "estimate, "project,"
"believe," "anticipate," "intend," "expect," "plan," "predict," "may," "should,"
"will," "can," the negative of these words, or such other variations thereon, or
comparable terminology, are all intended to identify forward-looking
statements. Such statements reflect the current views of Constitution
Mining Corp. with respect to future events based on currently available
information and are subject to numerous assumptions, risks and uncertainties,
including, but not limited to, risks and uncertainties pertaining to development
of mining properties, changes in economic conditions and other risks,
uncertainties and factors, which may cause the actual results, performance, or
achievement expressed or implied by such forward looking statements to differ
materially from the forward looking statements. The information
contained in this press release is historical in nature, has not been updated,
and is current only to the date indicated in this press release. This
information may no longer be accurate and therefore you should not rely on the
information contained in this press release. To the extent permitted
by law, Constitution Mining Corp. and its employees, agents and consultants
exclude all liability for any loss or damage arising from the use of, or
reliance on, any such information, whether or not caused by any negligent act or
omission.
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