Vancouver, British Columbia–(Newsfile Corp. – April 18, 2022) – Chakana Copper Corp. (TSXV: PERU) (OTCQB: CHKKF) (FSE: 1ZX) (the “Company“ or “Shakana“) is pleased to announce that it has entered into a binding agreement with Condor Resources Inc. (“Condor“) to amend the terms of the purchase option agreement dated April 24, 2017, as amended on March 18, 2019 and November 13, 2020, relating to the Soledad project.
Under the existing agreement, a final payment of US$4.425 million was due to Condor on April 23, 2022. The parties have agreed to extend and amend the terms of the option to provide that Chakana may complete the exercise of the option to either, (1) pay US$2,800,000 and issue 9,480,198 common shares to Condor’s Peruvian subsidiary by June 23, 2022, or (2) make the following cash and stock payments to the Peruvian subsidiary of Condor over the next three-year period:
|Date||Cash payment||Shares in CAD equivalent|
|No later than June 23, 2022||$800,000||C$200,000|
|No later than June 23, 2023||$1,000,000||C$200,000|
|No later than June 23, 2024||$1,000,000||C$200,000|
|No later than June 23, 2025||$1,425,000||CA$400,000|
“This is an exceptional development for the Soledad project as it ensures that the capital raised by the company is better allocated to exploration and increasing the value of the project. With either payment options, Condor is increasing its stake in Chakana, allowing it to leverage more of the value we created on their original mining claims with upside exposure to the much larger project that now spans more of 4,200 hectares To date, we have only tested 15% of the 122 targets currently defined on the project, leading to an initial Inferred Resource hosting 191,000 ounces of gold, 11.7 million ounces of silver and 130 million pounds of copper, as published on January 11, 2022”, said Chairman and CEO David Kelley.
Share payment amounts are subject to adjustment in the event of early or late payment. In addition, Condor has agreed to certain voluntary resale restrictions on Chakana shares to be issued to Condor, with periodic releases over an 18-month period.
Pursuant to the amendment agreement and as part of the amount due to Condor, Chakana has also agreed to make a payment of US$200,000 to Condor’s Peruvian subsidiary by April 22, 2022.
About Chakana Copper
Chakana Copper Corp is a Canada-based mining exploration company currently advancing the Soledad project located in the Ancash region of Peru, a highly favorable mining jurisdiction with supportive communities. The Soledad project is notable for high-grade copper-gold-silver mineralization that is hosted in tourmaline breccia pipes. An initial inferred resource estimate for seven breccia pipes was announced in January 2022 (see press release dated February 23, 2022), with 6.73 Mt containing 191,000 ounces of gold, 11.7 million ounces of silver and 130 million pounds of copper. Additionally, extensive multidisciplinary exploration has defined 122 exploration targets, of which 18 have been tested to date (15%), confirming that Soledad is a large, well-endowed mineral system with strong exploration potential. Chakana investors are in a unique position as the Soledad project offers exposure to base and precious metals. For more information on the Soledad project, please visit the website at www.chakanacopper.com.
ON BEHALF OF COUNCIL
(sign) “David Kelly“
President and CEO
For more information, contact:
Joanne Jobin, Investor Relations Officer
Telephone: 647 964 0292
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.
Notice on Forward-Looking Statements
This press release may contain forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause the actual results, performance or achievements of Chakana to be materially different from any future results, performance or achievements expressed or implied by the statements. prospective. . Forward-looking statements or information relate to, among other things, the interpretation of the nature of mineralization at the Soledad copper-gold-silver project (the “Project”), the potential for expansion of mineralization and the development and growth of resource within the project, the planning of additional exploration work, the ability to de-risk potential exploration targets and our belief in the potential for mineralization in unexplored portions of the project. These forward-looking statements are based on management’s current expectations and beliefs, but given the uncertainties, assumptions and risks, readers are cautioned not to place undue reliance on such forward-looking statements or information. The Company disclaims any obligation to update or publicly announce any such statements, events or developments, except as required by law.