Aurcana Corporation ("Aurcana" or the "Company") announces it has entered into an agreement to sell the Rosario exploration and development project located in Sinaloa State, Mexico to Silvermex Resources Ltd. With the sale of Rosario, Aurcana will continue to focus on the development of the Shafter Silver mine and improve operations at the La Negra Mine.
Under the terms of the acquisition, Silvermex will pay Aurcana $125,000 CDN and issue one million shares upon closing of its agreement and an additional $125,000 CDN within 90 days of closing. Upon successful production or within 24 months Silvermex will issue an additional one million shares and pay to Aurcana $3,000,000 CDN in six installments of $500,000 every six months over a 36 month period. Silvermex will also assume the balance of all future payments due to Grupo Mexico.
About Aurcana Corporation:
The Shafter silver mine, with a NI 43-101 measured and indicated resource of 24.6 million ounces of silver and an inferred resource of 22.8 million ounces of silver using a 4.0 ounce per ton cut off, is scheduled to produce at 3.5 million ounces silver per year. The 80% owned La Negra silver-lead-zinc-copper mine in Queretaro State, Mexico, is operating at 1,000 tonnes per day.
Ron Nichols, P.Eng. a Director and Vice President of Exploration for Aurcana, and a Qualified Person as defined by National Instrument 43-101, supervised the preparation of the technical information in this release.
The reader should be cautioned the Company has not completed feasibility studies confirming the projected production capacity for La Negra or Shafter and there is no certainty the Company's plans will be economically viable.
ON BEHALF OF THE BOARD OF DIRECTORS OF
"Lenic Rodriquez", President
For further information, visit the website at www.aurcana.com or contact:
Jack Barnes, Manager Investor Relations
Phone: (604) 331-9333
Toll Free: (866) 532-9333
Fax: (604) 633-9179
Caution Regarding Forward-Looking Statements -- This news release contains certain forward-looking statements, including statements regarding the business and anticipated financial performance of the Company. These statements are subject to a number of risks and uncertainties. Actual results may differ materially from results contemplated by the forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include unsuccessful exploration results, changes in metal prices, changes in the availability of funding for mineral exploration and development, unanticipated changes in key management personnel and general economic conditions. When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and should not place undue reliance on such forward-looking statements. The Company does not undertake to update any forward-looking statements, oral or written, made by itself or on its behalf.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy and accuracy of this Release.