Ecuador Gold & Copper Corp. announces shareholder agreement for
joint venture with Guangshou Group
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VANCOUVER,
Nov. 26, 2012 /CNW/ - Ecuador Gold
& Copper Corp. (TSX-V: EGX) is pleased to announce that its
Ecuador subsidiary, Condormining
Corporation S.A. ("Condormining") has entered into a
shareholders agreement (the "Shareholders Agreement"), dated
effective November 2, 2012, with
Minera Guang Shou Ecuador S.A ("Guangshou Ecuador") to form
a joint venture (the "Chinapintza JV") for exploration
development of the Chinapintza deposit at its Condor Gold Project
in southeast Ecuador.
The Shareholders Agreement supersedes and
replaces the letter of intent, which was announced on September 5, 2012.
Under the terms of the Shareholders Agreement,
Condormining and Guangshou Ecuador plan to proceed with exploration
development (including an underground exploration program) of up to
300 tonnes per day of gold mineral extraction at the Chinapintza
deposit pursuant to the "small-scale mining regime" under
Ecuador law, which limits such
exploration development to 300 tonnes per day of gold mineral
extraction. All legal and environmental requirements will be
completed in accordance with Ecuadorian laws and regulations. The
exploration development will involve underground exploration
drilling, sampling and mapping and the underground gold mineral
extraction operations with gold processing and tailings disposal
facilities.
Pursuant to the terms of the Shareholders
Agreement JV, Condormining will have a 30% interest in the
Chinapintza JV and Guangshou Ecuador will have a 70% interest in
the Chinapintza JV and Guangshou Ecuador will be responsible for
supplying all the funds for the construction and development of the
contemplated development operations for the
Chinapintza JV.
The Company believes the Chinapintza JV will
create numerous employment and development opportunities in the
southeast Ecuador region
surrounding the proposed gold exploration development
operations.
Cautionary Note
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 Ecuador Gold and Copper Corp.