NEWS! Westminster and Capstone Mining Corp. complete the option agreement for the Cumbral-San Bartolo property, Sonora, Mexico
VANCOUVER , April 17, 2012 /CNW/ - Westminster Resources Ltd. (TSX-V: WMR.V - News) has closed an agreement with Capstone Mining Corp. (TSX:CS.TO - News) originally announced on February 9, 2012 (see NR #WMR 12-01) whereby the Company has granted Capstone an option to acquire up to a 70% interest in the Cumbral-San Bartolo prospect area of the El Cobre property through staged exploration expenditures totaling $9.3 million by December 31, 2015 , and delivering a scoping study by June 30, 2016 .
Capstone is required to finance $1,600,000 by December 31, 2012 and an additional $1,700,000 by December 31, 2013 to earn a 49% interest; it can then earn a further 11% interest by expending an additional $3,000,000 on or before December 31, 2014 and a further additional 10% interest by expending $3,000,000 on or before December 31, 2015 . Following completion of the $9,300,000 in expenditures each party will be responsible for their portion of funding going forward on a proportionate basis. Should Westminster elect not to participate beyond the $9,300,000 , Capstone will have the exclusive right and option to earn an additional 5% (for a total of 75%) undivided interest in the property by delivering a preliminary economic assessment on the property.
The prospective Porphyry/Iron-Oxide-Copper-Gold (IOCG) targets identified at the approximately 8,000 hectare Cumbral-San Bartolo prospect have been explored to date by Westminster Resources with VTEM airborne geophysical surveying, IP and ground magnetic geophysical surveying, extensive mapping, and soil and rock sampling. The project's Joint Management Committee has now approved 3D-IP surveying to further identify drill targets on this undrilled property. Detailed geological and alteration mapping is just being completed and the 3D-IP planned geophysical surveying will start before month's end.
Glen Indra, President of Westminster stated, "the Cumbral-San Bartolo trend was first identified in May of 2011 and now within a year, our team has attracted the experienced and successful Capstone group to assist, in a substantial manner, in advancing this exciting project".
Concurrent with the signing of this Option Agreement the Company has completed a private placement of 5,730,000 shares at $0.15 per share for a total of $859,500 of which 5,000,000 shares for a total of $750,000 was subscribed by Capstone Mining Corp. Unless permitted under securities legislation, the holder of the securities shall not trade the securities before August 14, 2012 .
Capstone Mining Corp. is a Canadian mining company with two producing copper mines, the Cozamin copper-silver-zinc-lead mine located in Zacatecas State, Mexico and the Minto copper-gold-silver mine in Yukon, Canada . In addition, Capstone has two development projects, the large scale 70% owned Santo Domingo IOCG project in Chile in partnership with Korea Resources Corporation and the 100% owned Kutcho copper-zinc-gold-silver project in British Columbia, as well as other exploration properties.
All technical content in the foregoing disclosure has been verified and approved by Glen C. Macdonald, P.Geo., (a qualified person for the purpose of National Instrument 43-101, Standards of Disclosure for Mineral Projects). Mr. Macdonald is a director of Westminster Resources Ltd., and has visited the project.