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Chinapintza Mining Corp. Announces Agreement for Termination of the Chinapintza Joint Venture

http://finance.yahoo.com/news/chinapintza-mining-corp-announces-agreement-203100664.html

May 3, 2016 4:31 PM

Chinapintza Mining Corp. (CPA.V)

Ecuador Gold & Copper Corp (EGX.V)

TORONTO, ON / ACCESSWIRE / May 3, 2016 / CHINAPINTZA MINING CORP. (CPA.V) (the "Company") announces that pursuant to an agreement (the "Termination Agreement") dated as of April 29, 2016 it has together with its subsidiary, Minera Guangshou Ecuador S.A. ("Guangshou") agreed with Ecuador Gold and Copper Corp. ("EGX") and its subsidiary, Condormining Corporation S.A. ("Condormining"), to the termination of the joint venture agreement (the "JV Agreement") between Condormining and Guangshou dated November 2, 2012 for the joint ownership and exploration and development of the Chinapintza mineral deposit in Ecuador (the "Chinapintza Property").

Pursuant to the Termination Agreement, the parties agree that the JV Agreement is terminated, Condormining retains 100% ownership of and title to the Chinapintza Property, and the parties release each other from all liabilities, claims or obligations in respect of the JV Agreement. In further consideration under the terms of the Termination Agreement, the Company will receive from EGX a settlement in the amount of $175,000 (the "Settlement Amount"), which payment shall be satisfied by EGX issuing common shares (the "Settlement Shares") of EGX to the Company at $0.30 per share amounting to 583,333 Settlement Shares, pursuant and subject to the policies of the TSX Venture Exchange.

Under the Termination Agreement, Guangshou has agreed to remove its equipment from the Chinapintza Property within 135 days (subject to local conditions and acts of God) following the closing (the "Closing") of the issuance of the Settlement Shares, unless such equipment is sold to EGX or Condormining. The Termination Agreement also provides for the transfer to EGX of all technical and other information in respect of the Chinapintza Property which is in possession of the Company and Guangshou. Likewise, EGX and Condormining have agreed to use their commercially reasonable best efforts to transfer the remaining 30% shares of Guangshou's 70% owned Ecuador holding company, JV Chinapintza Mining S.A., to Guangshou or its nominee on or before the date of Closing.

The Termination Agreement and issuance of the Settlement Shares is subject to approval of the TXV Venture Exchange (the "Exchange"). The Settlement Shares will be subject to a four month hold period.

For further information please contact:

Bill Mitoulas
Chief Financial Officer, Corporate Secretary, and Director
Telephone: [phone]

FORWARD LOOKING INFORMATION

Certain statements contained in this press release constitute forward-looking information. These statements relate to future events or future performance. The use of the word, "will" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company's current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. In particular, this news release contains forward-looking information relating to satisfying requirements under Exchange policies for conditional approval from the Exchange in respect of the transactions contemplated in the Termination Agreement, as described above.

Various assumptions or factors are typically applied in drawing conclusions or making the forecasts or projections set out in forward-looking information. Those assumptions and factors are based on information currently available to the Company. The material factors and assumptions include the ability of the Company to satisfy policy requirements of the Exchange. The Company cautions the reader that the above list of risk factors is not exhaustive.

The forward-looking information contained in this release is made as of the date hereof and the Company is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein.

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.

Not for distribution to U.S. Newswire Services or for dissemination in the United States. Any failure to comply with this restriction may constitute a violation of U.S. securities laws.

SOURCE: Chinapintza Mining Corp.