Barrick Gold Corp. Signs Letter Agreement, for Joint-Venture and $US3-million Share Purchase with Oroperu Resources.VANCOUVER, B.C.--(BUSINESS WIRE)--Aug. 31, 1995--Oroperu Resources Inc. is pleased to announce that it has signed a Letter of Intent with Barrick Gold Barrick Gold Corporation TSX: ABX NYSE: ABX is the largest pure gold mining company in the world, with its headquarters in Toronto, Ontario, Canada; and four regional business units (RBU's) located in Australia, Africa, North America and South America. Corporation to enter into a joint-venture development with Barrick on Oroperu's large El Toro El To·ro An unincorporated community of southern California southeast of Santa Ana. Founded in the 1890s, it is mainly residential. Population: 62,685. gold project in north-central Peru. Under the terms of the letter agreement Barrick will also purchase by means of a private placement a total of $US3-million of Oroperu's securities. The placement is priced at $C2.10 per unit, with each unit consisting of one share of Oroperu and one warrant entitling Barrick to purchase an additional Oroperu share at $C2.40 within two years. Under the proposed joint venture terms on El Toro, Oroperu will have operating responsibility to spend an initial $US3-million on exploration of the 12,590 hectare El Toro project site within a two-year period. Barrick has the option to then spend a further $US7.5-million on the project within three years to earn a 60 percent interest in the El Toro. If Barrick earns this interest, it will also guarantee Oroperu's 40 percent share of project equity and debt financing Debt Financing When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay , secured by Oroperu's equity in the project. The El Toro project, in the Huamachuco gold district, exhibits mineralization Mineralization The process by which the body uses minerals to build bone structure. Mentioned in: Rickets mineralization, n the bioprecipitation of an inorganic substance. representing a high-level epithermal gold porphyry Porphyry, Greek scholar Porphyry (pôr`fĭrē), c.232–c.304, Greek scholar and Neoplatonic philosopher. He studied rhetoric under Cassius Longinus and philosophy under Plotinus. system, and is of a sufficient size to potentially host a world- class deposit. The Company's geologists have identified a strike length of mineralization of up to three kilometers with the zone open to the west. In preparation for drilling, the Company currently has a program of geophysics, trenching and road building underway at the El Toro and other nearby projects. Overall, Oroperu has under option or owns outright 53,500 hectares of exploration properties in north-central Peru including its four major gold projects. These include, in addition to El Toro, the Cerro Calorco, Minaspamba and Trucha Dorada properties, which are all essentially at an advanced exploration stage. It also recently acquired by option six concessions totalling 3,800 hectares in the area of La Libertad which are contiguous with its El Toro and Cerro Calorco projects. The option terms call for monthly payments over seven years to a total of $US450,000 as advances on a 2 percent NSR NSR abbr. normal sinus rhythm NSR Normal sinus rhythm, see there which is capped at $US4-Million. Oroperu believes its association with Barrick Gold will permit the Company to advance several of its projects concurrent with development of the El Toro, allowing for fast-paced development of the Company as a whole. Oroperu anticipates that its shares will shortly be quoted for trading 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. under the trading symbol Trading symbol See: Ticker symbol "OROP OROP Orgone Operation (utilizing a cloudbuster) ". The Company recently completed a $C4,255,000 private placement financing of 3.7-million Oroperu shares through Yorkton Securities Inc. at $C1.15 per share. Yorkton is also assisting the Company as an advisor in the Barrick transaction. The Letter of Intent between Barrick Gold and Oroperu is subject to a Final Agreement, as to the approvals of the Boards of Directors of both companies, and to requisite regulatory approvals. SIGNED ON BEHALF OF THE BOARD OF DIRECTORS OF OROPERU RESOURCES INC. "K. Wayne Livingstone" K. Wayne Livingstone President NO STOCK EXCHANGE, SECURITIES COMMISSION OR OTHER REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE CONTENTS OF THIS NEWS RELEASE. CONTACT: OROPERU RESOURCES INC., 604/683-6640 INDUSTRY KEYWORD: MINING REPEATS: New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of 212-575-8822 or 800-221-2462; Boston 617-330-5311 or 80 |
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