Ambrex Signs Development Deal With Noranda - Could Spend $28.9 Million to Develop Aripuana - Ambrex Will Remain On-Site Contractor.TORONTO--(BUSINESS WIRE)--May 9, 1997--Ambrex Mining Corporation (CDN (Content Delivery Network) A system of distributed content on a large intranet or the public Internet in which copies of content are replicated and cached throughout the network. :AMBX) announced today that it has negotiated and signed a letter of intent with Noranda Inc., in which Noranda can earn up to a 70 percent interest in the Aripuana base-metal project in Brazil by incurring a total of $28.9 million in cash payments, exploration expenditures and on a feasibility study "A Feasibility Study" is an episode of the original The Outer Limits television show. It first aired on 13 April, 1964, during the first season. It was remade in 1997 as part of the revived The Outer Limits series with a minor title change. . -0- To earn an initial 55 percent, Noranda has agreed to the following: - CDN$2 million in exploration spending during the remainder of this year. - CDN$650,000 payment in 1997 and CDN $150,000 in early 1998 to cover property payments to garimpeiro hand-miners. - Cash payment of US$800,000 (CDN$1.1 million), at the time of a production decision, to previous owners. - Further exploration expenditures to December, 1999 of CDN$10 million. - A final CDN$3 million cash payment by Noranda will be paid pro- rata to its joint venture partners at the time of a production decision. -0- After these expenditures, Noranda will have earned a 55 percent interest, leaving effective interest for Ambrex, 22.05 percent, Ourominas, 13.5 percent and St. Genevieve, 9.45 percent. To earn a further 15 percent, Noranda has also agreed to the following: - CDN$12 million to fund a feasibility study. After these expenditures, Noranda will have earned 70 percent, leaving Ambrex, 14.7 percent, Ourominas, 9 percent and St. Genevieve, 6.3 percent. The agreement calls for Ambrex to maintain its hands-on involvement in the property by providing and/or supervising the continuing on- site work, which will generate revenue for Ambrex. Ambrex discovered the Aripuana volcanogenic vol·ca·no·gen·ic adj. Of volcanic origin. massive sulphide sulphide: see sulfide. deposit in September, 1996 during the first phase of its planned exploration program which to date, has examined only one-third of the property. Independent consultant Watts, Griffis and McOuat (WGM WGM Whispering Gallery Mode (microresonators) WGM Women's Grandmaster WGM Work Group Manager WGM World Gone Mad (Austin, Texas drum and bugle corps) WGm West Germanic (linguistics) ) has since calculated a 10-million-tonne potential for the Valley Deposit. Within the Valley Deposit, Ambrex and WGM have formally calculated an indicated resource of 2.0 million tonnes with a Net Smelter Return (NSR NSR abbr. normal sinus rhythm NSR Normal sinus rhythm, see there ) value of US$74 per tonne. The NSR was calculated by taking into account such costs as transportation, smelting smelting, in metallurgy, any process of melting or fusion, especially to extract a metal from its ore. Smelting processes vary in detail depending on the nature of the ore and the metal involved, but they are typified in the use of the blast furnace. , and recovery charges and applying that against the Gross Metal Value, which is US$170 per tonne. The average grade of the 2.0 million tonnes is 10.7 percent zinc, 2.0 percent lead and 87.5 grams per tonne silver. To date, the Valley Deposit has been drilled to a depth of only 300 meters and along strike for 225 meters. It remains open at depth and along strike in both directions. The geophysical ge·o·phys·ics n. (used with a sing. verb) The physics of the earth and its environment, including the physics of fields such as meteorology, oceanography, and seismology. data indicate the deposit extends to at least 600 meters below surface. The copper/gold-rich North Ridge Deposit has been drilled as well, and several magnetic and geochemical anomalies have been identified to the west, east and northeast of the deposit. Ambrex specializes in mineral exploration in Brazil. The Company has 44.5 million shares outstanding and its shares trade on the Canadian Dealing Network Canadian Dealing Network (CDN) The organized OTC market of Canada. Formerly known as the Canadian Over-the-Counter Automated Trading System (COATS), the CDN became a subsidiary of the Toronto Stock Exchange in 1991. (CDN) under the symbol AMBX. -0- Note to Editors: (This release is available on the Internet at http://www.cdn-news.com) CONTACT: Ambrex Mining Corporation William Fisher People named William Fisher include:
http://www.AmbrexMining.com or Hume, Kieran Inc. Jon W. Kieran, 416/868-1079 or Hume, Kieran Inc. Olav Svela, 416/868-1079 |
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