Rio Moche Exploration Inc.: Announcement
MONTREAL, QUEBEC -- (Marketwire) -- 01/22/13 -- Rio Moche Exploration
Inc. a private mining company now continued in Canada and operating
out of Montreal (formerly Trinity Mining Holding A.G. a Swiss company
listed on the Frankfurt Exchange) is pleased to announce that it has
closed on January 18, 2013 a $ 2,000,000 private placement with
GoldCorp Inc. of Vancouver. Goldcorp has subscribed to 8,000,000
common shares of Rio Moche at a price of CDN $0.25 per share,
representing 15.6% of Rio Moche's capital on a fully diluted basis.
As an inducement to enter into this private placement, Goldcorp was
also granted (i) certain anti-dilution rights entitling it to
participate in future equity offerings of Rio Moche, (ii) a right of
first refusal in the event of the sale of Rio Moche's flagship Caupar
property in Peru and (iii) a warrant entitling Goldcorp to enough
treasury shares of Rio Moche to increase its interest to 51% of the
total issued and outstanding shares of Rio Moche. This warrant can be
exercised within five years of the closing at a price equal to the
fair market value of the shares less the maximum discount allowed
under the rules of the TSX Ventures Exchange.
Prior to the private placement, Rio Moche had 41,908,710 shares
outstanding and 4,195,000 stock options issued.
The proceeds from the private placement will allow Rio Moche to drill
test, by reverse circulation method, in wholly owned Caupar
gold-silver property (subject to a 2.5% NSR in favor of Iamgold)
located some 2.5 hours by road, east of the coastal city of Trujillo,
Infrastructural facilities including water and electricity are
available near by and the property is within an area of intensive
mining activities. Alto Chicama (Barrick), Quirovilca (Pan American
Silver), La Arena (Rio Alto) etc.
According to the February 29, 2012 43-101 report by independent
consulting geologist Alain Vachon, exploration programs carried by
Trinity-Iamgold-Cambior, have allowed Sociedad Minera Trinity Peru
S.A.C, a 100% owned subsidiary of Rio Moche, delineate a gold-silver
mineralized oxidized zone, 3.0 km in length (N-E direction) by 700m
wide and about 100 m in thickness, where more than 33% of all the
rock and soil samples collected (1,081 out of 3,286) have returned
gold values greater than 0.1 g/t Au. This oxidized zone overlies what
could be a deeply seated porphyry copper system.
Discovery drill hole C-2008-04 by Trinity returned from surface, an
average value of 0.341 g/t Au and 10.2 g/t Ag over a length of 73 m.
The last 21 m were 0.78 g/t Au and 19 g/t Ag. Several widely spaced
(500 m) parallel long (up to 700 m) trenches have been dug so as to
intersect the two main perpendicular stockwork structures known to
exist on the property and have given some good results such as: 0.26
g/t Au over 90 m and then 0.47 g/t Au over 78 m (tr-04), 0.29 g/t Au
over 86 m (tr-02), 0.30 g/t Au over 210 m (tr-03) and on.
This kind of mineralization in oxidized material is typical of a low
grade, large tonnage deposit that could lend itself to a run of mine
and heap leaching operation. In similar environments in Peru, the
Yanacocha (Newmont), Alto Chicama (Barrick), La Arena (Rio Alto) and
Aruntani (Guido del Castillo) gold mines operate at a cut off grade
as low as 0.11 g/t Au.
Metallurgical tests done by Kappes Cassidy in Reno, NV, on material
from Caupar indicate recoveries of 84% for gold and 38% for silver.
This is very good for a heap leaching process. Silver recovery
increases with an increased presence of the metal, although there is
no silver on surface.
There are several hundred million tonnes of gold mineralized oxidized
material to be evaluated at Caupar. The property is well located on
the flat top of a mountain and at an altitude of 3,400 to 3,700 m
above sea level. There are no farming activities on the site.
Jean Depatie, Chairman of Rio Moche stated: "this private placement
will give us the necessary financial resources to improve our
knowledge of this exciting property and to complete our corporate
reorganization by evaluating the possibilities of a public listing in
Canada. We are grateful to Goldcorp for the trust they have placed in
us in what is a difficult environment for junior resource companies."
Prospective Statements, Quality Control and Assurance:
Jacques Trottier PhD., Geol., is the "Qualified Person", as defined
by National Instrument 43-101, who has read and approved the
technical and scientific information in this news release.
Statements in this press release contain forward-looking information
within the meaning of applicable securities law. Forward-looking
information is frequently characterized by words such as "plan",
"expect", "project", "intend", "believe", "anticipate", "estimate"
and other similar words, or statements that certain events or
conditions "may" or "will" occur. Readers are cautioned that
assumptions used in the preparation of forward-looking information
may prove to be incorrect. Although we believe that the expectations
reflected in the forward-looking information are reasonable, there
can be no assurance that such expectations will prove to be correct.
We cannot guarantee future results, level of activity, performance or
achievements. Consequently, there is no representation that the
actual results achieved will be the same, in whole or in part, as
those set out in the forward-looking information.
Forward-looking information is based on the opinions and estimates of
management at the date the statements are made, and are subject to a
variety of risks and uncertainties and other factors which are beyond
the control of Rio Moche that could cause actual events or results to
differ materially from those anticipated in the forward-looking
information. Some of the risks and other factors could cause results
to differ materially from those expressed in the forward-looking
information include, but are not limited to: stock market volatility,
access to capital, commodity prices and general economic conditions.
Industry related risks could include, but are not limited to:
operational risks in exploration, development and production; delays
or changes in plans; competition for and/or inability to retain other
services; competition for, among other things, capital, acquisitions
of reserves, undeveloped lands, skilled personnel and supplies; risks
associated to the uncertainty of reserve estimates; governmental
regulation, including environmental regulation; geological,
technical, drilling and processing problems and other difficulties in
producing reserves; the uncertainty of estimates and projections of
costs and expenses; incorrect assessments of the value of
acquisitions; the need to obtain required approvals from regulatory
authorities and other factors. Readers are cautioned that this list
of risk factors should not be construed as exhaustive. The
forward-looking information contained in this news release is
expressly qualified by this cautionary statement. Rio Moche does not
undertake any obligation to update or revise any forward-looking
statements to conform such information to actual results or to
changes in expectations except as otherwise required by applicable
securities legislation. Readers are cautioned not to place undue
reliance on forward-looking information.
PhD., geol, Pres.
BA, MSc., Chairman
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