VANCOUVER, Dec. 13, 2012 /CNW/ - Altan Rio Minerals Limited, TSX.V: AMO ("Altan Rio" or the "Company") is pleased to announce the execution of a Definitive Agreement (the "Agreement") pursuant to which the Company can acquire a 100% interest in the Khavchuu gold project ("Khavchuu"), located in northern Mongolia, subject to a 2.105% NSR royalty. The Agreement, dated August 17th, 2012, supersedes the former Heads of Agreement, dated April 4th, 2011.
Under the terms of the Agreement, Altan Rio will make cash payments totaling US$75,000 (of which $60,000 has been paid and $15,000 is payable on or before the date that is 30 months from May 3rd, 2011 (the "Commencement Date")), issue 760,000 common shares in the capital of the Company upon TSX.V approval and make a final payment of either US$285,000 or the equivalent in common shares in the capital of the Company on or before the date that is 30 months from the Commencement Date. In addition, US$300,000 in cumulative property expenditures must be incurred within 24 months of the Commencement Date.
Khavchuu, which covers an area of 71.4 km2, is an early-stage exploration project located 10 km west of Centerra Gold's Boroo mine and mill complex (~2 Moz resource base, most of which has since been extracted). Recent Phase 1 drilling intersected high grade gold (up to 11.49 g/t over 1 m) and the Company is keen to undertake further evaluation.
For more information please visit Altan Rio's website at www.altanrio.com.
On behalf of Altan Rio Minerals Limited,
Evan Jones, President & CEO
This press release may contain forward looking statements including those describing Altan Rio's future plans and the expectations of management that a stated result or condition will occur. Any statement addressing future events or conditions necessarily involves inherent risk and uncertainty. Actual results can differ materially from those anticipated by management at the time of writing due to many factors, the majority of which are beyond the control of Altan Rio and its management.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Altan Rio Minerals Limited