Himalayan Capital Corporation announced that through its 100% owned subsidiary, Mineral Azul Ventures Limitada it has signed an option agreement to acquire 100% interest in the Caballo Blanco copper and iron project which is located close to the Company's La Higuera copper and gold project in Chile. The Caballo Blanco copper and iron project covers an area of 2,550 hectares and straddles the Panamerican Highway.
The option agreement, which remains subject to the approval of the TSX Venture Exchange, calls for the Company to make cash payments totalling USD 1,000,000 and to issue a total of 500,000 common shares of the Company to an arm's length third party over 3 year period.
Specifically, the Company is be required to pay USD 50,000 immediately; USD 50,000 and the issuance of 100,000 common shares of the Company on or before July 1st 2012; USD 100,000 on or before January 1st 2013; USD 100,000 and the issuance of 150,000 common shares of the Company on or before July 1st 2013; USD 200,000 on or before July 1st 2014; the issuance of 250,000 common shares of the Company on or before January 1st 2015 and USD 500,000 on or before July 1st 2015.
There has been previous exploration carried out on and there are several small copper workings that occur within the Caballo Blanco property. Previous exploration included ground magnetic surveying, I.P. surveying and a total of 10 reverse circulation and 5 diamond drill holes. The ground magnetic survey generated a large, moderate amplitude magnetic anomaly and several of the exploration drill holes were located within this.
As discussed in the Company's National Instrument 43-101 technical report with respect to the La Higuera Property in the discussion on nearby properties In 2001, LAC (UK) drilled 10 generally shallow RC holes at their Caballo Blanco Project, which is located approximately 6 KM SW of the La Higuera Property.
The following intervals were obtained in two of their holes: 30 meters at 0.44% Cu and 82 meters at 0.35% Cu and 19% Fe. The drill information on the LAC property is not necessarily indicative of the mineralization on the La Higuera property which is the subject of this technical report.
Mr David O Connor president and CEO of Himalayan Capital said that "Whereas the iron, copper and gold mineralization evident in the mines at La Higuera is much more developed the results of previous exploration at Caballo Blanco represents an exploration target with significant merit which we plan to explore in parallel with our work at the La Higuera Project. Our first task will be to re survey all the old drill positions and carry out a more detailed ground geophysical program over the area of copper workings and significant drill results. We will then design a new drill program based on this."
