Tosca Mining Corporation renegotiates the option agreement for Red Hills
May 03.05.2012, 4 - Tosca Mining Corporation, (TSQ.V; TSMNF.US; TQ5.FSE) announces that it has successfully renewed its XNUMX-year option agreement to acquire the Red Hills molybdenum / copper project in Presidio County, Texas negotiated.
Under the renegotiated conditions, Tosca's annual option payment to sellers of 800.000 US $ was reduced to 300.000 US $ in 2012 and the next two years. This leads to a deferral of payments from 1.500.000 US $ to 1. May 2015 or up to a production decision, whichever comes first, which will trigger a final payment of 2.400.000 US $. Under the new terms, Tosca will increase the number of shares issued to sellers over the term of the option agreement with annual increments of 600.000 shares from 2.100.000 to 2.800.000.
"The renegotiated conditions allow the company to divert working capital for the development of the Red Hills project. We want to thank the sellers for recognizing the challenges of the current market environment and working with us, "said Ron Shenton, President.
On the 22. February 2012 Tosca released the first independent and NI 43 101 compliant resource report for the project Red Hills. The study, made by Mine Development Associates of Reno, Nevada, states that the Red Hills is a porphyry deposit that, with a cut-off grade of 0,05% Molybdenum Equivalent (MoEq), is an indicated resource of 21,7 million tonnes with 0,09% MoEq and a derived resource of 149,8 million tons with 0,073% MoEq.
At a cut-off grade of 0,05% MoEq, the indicated resource includes 26,6 million pounds of molybdenum and the inferred resource 206,6 million pounds. The indicated resource also includes 68,6 million pounds of copper, while the inferred resource 68,2 holds millions of pounds of copper. The deposit is open to the deep and to the south.
According to metalprices.com, the price of molybdenum was 27. April 2012 14,28 $ per pound, while the copper price at 30. April 2012 was at 3,83 $ per pound.
The terms of the renegotiated agreement are subject to the approval of the TSX Venture Exchange.
For the Board of Directors,
"Ron Shenton"
For more information, please visit the company's website at www.toscamining.com, call +1 604-687-6562 and email ppgad@pucrs.br.
The TSX Venture Exchange and its regulators (referred to in the Articles of Association of the TSX Venture Exchange as Regulation Services Providers) accept no responsibility for the adequacy or accuracy of this announcement.
Those statements in this news release that are not historical information, including statements about future plans and goals of the company and expected results, may contain forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all risks and uncertainties associated with commodity exploration and discovery. As a result, actual results may differ materially from those expressed in forward-looking statements.
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