Andina Signs Letter Of Intent To Option Pampa Buenos Aires Project to Mena Resources
TORONTO, ONTARIO--(CCNMatthews - Aug. 28, 2006) - ANDINA Minerals Inc. (TSX VENTURE:ADM) ("Andina" or "the Company") is pleased to report that it has signed a Letter of Intent to enter into an option agreement with the Chilean subsidiary of Mena Resources Inc. ("Mena") whereby Mena may acquire a 50% interest in Andina's Pampa Buenos Aires Project. The Pampa Buenos Aires Project encompasses 27,000 hectares of highly prospective ground located approximately 15 kilometres southwest of Meridian Gold Inc.'s ("Meridian") El Penon silver gold mine. Andina and Mena will prepare a Definitive Agreement formalizing the terms of the Letter of Intent within the next 30 days. The Definitive Agreement is subject to approval by the Board of Directors of both companies and the approval of the TSX Venture Exchange.
"We are very pleased to have Mena involved in the Pampa Buenos Aires Project", stated Carl B. Hansen, President and CEO of Andina. "John Davidson, PhD, Mena's Exploration Manager South America, brings valuable knowledge and experience to exploration in this region having played a critical role in the discovery of Meridan's nearby El Penon mine. By allowing Mena to earn an interest in the Pampa Buenos Aries Project, we can expedite exploration on the Project while we focus our resources on our flagship Volcan Gold Project, located in Chile's Maricunga Gold Belt."
Upon signing the Definitive Agreement, Mena is required to make 2006 land payments, up to US$45,000. After incurring exploration expenditures of US$250,000, within one year of signing the Definitive Agreement, Mena may earn a 50% interest in the Pampa Buenos Aires Project by paying Andina 300,000 common shares of Mena. At this time, Andina and Mena will form a joint venture, in the form of a Chilean contractual mining company, to continue exploration activities on the property.
About Andina Minerals Inc.
Andina is an Americas focused exploration company, with a portfolio of precious metals exploration projects in Chile, which is dedicated to maximizing the value of its exploration assets through a disciplined and fiscally responsible approach exploration. The Company maintains a portfolio of exploration properties in Chile including its flagship property, the Volcan Gold Project located in Chile's Maricunga Gold Belt.
A summary of the Pampa Buenos Aires property is reported within the Company's Technical Report titled "Review of Gold and Copper Exploration Potential of Mineral Properties in Chile" dated November 12, 2004 which was filed at www.sedar.com on November 24, 2004.
Certain statements herein that are not historical facts are forward-looking statements, including statements as to timing and extent of future exploration programs, and the timing of the signing of definitive agreements. As such, these statements address future events and conditions and so involve inherent risks and uncertainties, as disclosed under the heading "Risk Factors" in the company's recent Management Discussion and Analysis filed with Canadian securities regulators. Actual results could differ significantly from those currently projected as a result of, among those factors, adverse weather, regulatory changes, delays in receiving permits accidents and delays in completing exploration activities, not all of which are in the control of the company. The forward-looking information contained herein is the company's reasonable estimate today of future events and conditions, but no assurance can be given that such events or conditions will occur.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
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