Offtake agreement signed / Appointment of Director
December 15, 2006
Aurcana Corporation ("Aurcana" or the "Company") is pleased to announce that its 80% owned Mexican subsidiary Minera La Negra SA de CV ("La Negra") has signed an agreement with Trafigura Beheer B.V. ("Trafigura") for the La Negra Mine to sell its copper concentrate to Trafigura. This is an important milestone for Aurcana and its partner Reyna Mining and Engineering SA de CV ("Reyna") as it provides further support for the quality of the La Negra operation in advance of the restart of the mine in early 2007. Aurcana and Reyna are now working to secure offtake agreements for the lead and zinc concentrates.
The Company is also pleased to announce that Mr. Lenic Rodriguez has been appointed to the Board of Directors of Aurcana. Mr. Rodriguez is a Mexican businessman residing in Vancouver where he is a Managing Director of First Access Financial Group which provides trade credit financing to companies working in Mexico. Mr. Rodriguez holds a BA in Business Administration and a Masters degree in Systems from one of Mexico's top universities. The addition of Mr. Rodriguez with his solid Mexican business background continues with Aurcana's strategy of focusing on Mexico for its future growth.
Aurcana further advises, it has accepted Mr. John McCluskey's resignation from the board of directors of the Company to allow Mr. McCluskey to focus his attention on Alamos Gold, a gold producer with a strategy to grow its business in Mexico. The board and management of Aurcana wish to thank Mr. McCluskey for his tenure and guidance over the past several years.
At the Le Negra mine work on the mill continues to proceed well and material from the mine is being stockpiled outside the main 2000 haulage level. This stockpiled material will be used to restart the mill in early 2007 with operations planned to reach 1,000 tonnes per day. The reader should be cautioned the Company has not completed a feasibility study confirming the projected production capacity and there is no certainty the Company's plans will be economically viable.
Aurcana is a junior resource company and through its ownership in the La Negra mine plans to be a producer of zinc, copper, lead and silver. The Company's strategy is to utilize its extensive network in Mexico and focus on the acquisition of production and near term production opportunities similar to the La Negra mine
ON BEHALF OF THE BOARD OF DIRECTORS OF
"Ken Booth", President
For further information, please contact: Ken Booth, President or
Colin Farr, Investor Relations
Phone: (604) 331-9333
Web site: www.aurcana.com
The statements made in this News Release may contain certain forward-looking statements. Actual events or results may differ from the Company's expectations. Certain risk factors may also affect the actual results achieved by the Company. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy and accuracy of this Release.