INDIANAPOLIS--(BUSINESS WIRE)--AURYN Mining Corporation (OTC: CDCHD) is pleased to announce the signing of a binding Letter of Intent (“LOI”) with Hochschild Mining PLC, for the Las Dos Marias project (“LDM”). Please note, the currently named LDM project is a consolidation of over 3,000 hectares and is significantly larger than what has historically been known by our shareholders as the LDM. (The LDM project boundary map is available on our website.)
This LOI gives Hochschild the option to invest US$7,000,000.00 into the LDM project over a 5-year period to earn a 51% joint venture interest in the LDM properties. An option to invest an additional US$23,000,000.00 is available to Hochschild to gain an additional 9% interest. If all US$30,000,000.00 is invested, Hochschild will own 60% of the LDM project with AURYN holding the remaining 40% as a joint venture partner. The LOI is subject to further due diligence and the signing of a definitive agreement.
We expect to sign the definitive agreement in the coming weeks with work planned to begin on the property in early September 2018. The first step on this project will follow Dr. Sillitoe’s recommendations, which are from his visit to the property mid-March 2017. An aggressive work plan is scheduled to take place and the short-term goal is to have the property ready for drilling to begin in early 2019.
Maurizio Cordova, CEO of AURYN, commented: “We are pleased to partner with Hochschild. Although the project is still in the early stages of exploration, we believe it has the potential to become a significant gold / copper skarn project and we want our shareholders to have the opportunity to participate in this if it comes to fruition.”
AURYN will provide logistical support to Hochschild’s work on the project and will receive a net management fee for doing so.
For further information please visit our website, https://aurynminingcorp.com.
This news release contains certain “forward-looking statements” within the meaning of the United States Securities Exchange Act of 1934, as amended. This forward-looking information includes, or may be based upon estimates, forecasts and statements of management’s expectations with respect to, among other things, the completion of transactions, the issuance of permits, the size and quality of mineral resources, future trends for the company, progress in development of mineral properties, future production and sales volumes, capital costs, mine production costs, demand and market outlook for metals, future metal prices and treatment and refining or milling charges, the outcome of legal proceedings, the timing of exploration, development and mining activities, acquisition of shares in other companies and the financial results of the company. There can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially and substantially from those anticipated in such statements. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Inferred mineral resources are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that mineral resources will be converted into mineral reserves.