Cadillac Ventures Inc. announce that it has signed a joint venture agreement with Minas de Aguas Tenidas, S.A., a wholly owned subsidiary of Iberian Minerals Corp. encompassing 14 properties totalling approximately 232 km(2) within the prolific Iberian Pyrite Belt of southern Spain. Iberian is presently bringing the Aguas Tenidas deposit into production and completing a 1.7 million tonne per year concentrator on its wholly owned property.
The 14 properties included in the MATSA Huelva Joint Venture are as follows;
- Risquino Group – located 20 km from the Aguas Tenidas Mine and hosting strong untested gravity anomalies (a priority drill target);
- Cueva de la Mora Group – an intermediate stage property located approximately 5km east of Aguas Tenidas and hosting the former Angelita mine and prospect (a priority drill target);
- Cibeles – an early stage exploration property;
- Foch – encompassing a gravity anomaly on strike with the former Santa Barbara Mine requiring follow-up geophysics;
- Cuchillarejos Group – located between the Aguas Tenidas Mine and the former Rio Tinto Mine and encompassing a former producing copper mine (Chaparita Mine) and its unexplored environs, with anomalies identified and targeted for drill testing;
- Valo Group – an early stage exploration property encompassing known anomalies both along strike or in a similar setting to the nearby known Infanta deposit;
- Grupo La Romanera – an advanced exploration/evaluation stage property hosting the Romanera deposit;
- Grupo Vuelta Falsa – an early to intermediate stage exploration property with Vuelta Falsa, a small former producer, within the property limits, and untested gravity anomalies on the property;
- Valdelamusa Fraccion 1a – an early stage exploration evaluation project approximately 3km to the north of the Aguas Tenidas Mine;
- Penas Prietas – an early stage exploration evaluation project approximately 2.5 km south of and contiguous to the Aguas Tenidas Mine hosting two untested gravity anomalies;
- Majada – an intermediate stage property 17 km southeast of the Aguas Tenidas Mine hosting a partially delineated massive sulphide deposit with two additional untested geophysical targets and surface gossan zones;
- Los Toscanos – an early stage exploration property hosting untested gravity anomalies;
- Mora Fraccion 1 – an early stage property abutting the SE corner of the Aguas Tenidas property, contiguous to the Cueva de la Mora, Valdelamusa and Penas Prietas properties; and
- Ciceron – an early stage exploration property located due east and contiguous to the Aguas Tenidas property, hosting a large untested gravity anomaly requiring geophysical follow up.
Under the MATSA Huelva Joint Venture Cadillac holds an initial 1% in the Properties and can increase its interest to 90% by incurring $3 million of expenditures on the Properties over 2 years. Cadillac will be operator of all exploration programs and is obligated to maintain the Properties in good standing. Once Cadillac earns a 90% interest, future exploration expenditures under the joint venture continue to be funded by Cadillac.
Upon completion of a feasibility study with respect to a particular property, that property is to be transferred to a new operating company. Cadillac will hold a 90% interest and MATSA will hold a 10% interest, both participating, in the operating company. MATSA will have a 90-day option to increase its interest in the operating company to 35% (reducing Cadillac’s interest to 65%) by paying to Cadillac an amount equal to the expenditures incurred by Cadillac with respect to such property plus two times the cost of the feasibility study. With respect to the Santo Angel property in the Cueva de la Mora Group only (which includes the Angelita deposit), MATSA may increase its percentage interest in the operating company to 65% (Cadillac 35%) on the same payment terms as the other properties.
A party’s failure to fund its share of expenditures required to implement the recommendations of a feasibility study will result in dilution of that party’s interest in the operating company. If a party’s interest in an operating company falls below 10%, such party’s interest will convert to a 1% net smelter royalty.
Both parties have granted the other rights of first offer in the event of any proposed transfers of interest.
Mr. Norman Brewster, President and Chief Executive Officer, stated “Cadillac is looking forward to conducting an exploration program on the Pyrite Belt. The Company believes that the area offers a high discovery potential, as evidenced by the Aguas Tenidas Project, which was a blind deposit. The MATSA Huelva Joint Venture makes Cadillac well-positioned within the Pyrite Belt.”