SPOKANE, WASHINGTON -- (Marketwire) -- 01/10/13 -- Hunt Mining Corp. ("Hunt") (TSX VENTURE: HMX) is pleased to announce it has signed a new agreement with Fomento Minero De Santa Cruz Sociedad Del Estado ("Fomicruz") for the La Valenciana project in Santa Cruz Argentina. The La Valenciana project lies to the west of, and is contiguous to, Hunt's La Josefina project. The La Valenciana project is also contiguous to and north of the Joaquin Silver-Gold project, which was recently purchased by Coeur D' Alene Mines Corp.
The new agreement for La Valenciana has the following provisions:
-- The exploration period is seven years and will end on October 31, 2019;-- Hunt through Cerro Cazador S.A. ("CCSA"), its 100% owned Argentine subsidiary, will make a total investment of at least USD$5,000,000 in exploration on the La Valenciana project;-- If Hunt elects to take the La Valenciana project into production, it must create a new corporation (the "JV corporation"), that will be 9% owned by Fomicruz;-- Upon completion of a final feasibility study on the La Valenciana project, Fomicruz will have a one-time-only 30 day option to elect to purchase up to an additional 40% of the JV corporation, which would bring its total ownership to 49%. If Fomicruz elects to exercise this option, consideration for its additional investment will be made according to the following schedule: -- To purchase an additional 10% interest in the JV corporation, Fomicruz must reimburse Hunt for 10% of the exploration investment made by Hunt during the exploration period, bringing Fomicruz's total ownership interest in the JV corporation to 19%; -- To purchase the next additional 10% interest in the JV corporation, Fomicruz must reimburse Hunt for 20% of the exploration investment made by Hunt during the exploration period, bringing Fomicruz's total ownership interest in the JV corporation to 29%; -- To purchase a final additional 20% interest in the JV corporation, Fomicruz must reimburse Hunt for 25% of the exploration investment made by Hunt during the exploration period, bringing Fomicruz's total ownership interest in the JV corporation to 49%.-- Hunt, through its Argentine subsidiary, has the right to buy back any increase in Fomicruz's ownership interest in the JV corporation at a purchase price of USD$200,000 per each percentage interest owned by Fomicruz down to its initial ownership interest of 9%;-- Hunt has the right to purchase Fomicruz's initial 9% ownership interest of the JV corporation at a price to be negotiated by the parties.
Matt Hughes, Hunt's President, stated; "We have been working on this contract for the last three years and are excited to add this prospective property block to our current portfolio of projects. Management believes that the La Valenciana project and Hunt Mining's other Santa Cruz, Argentina precious metals projects have continued gold and silver exploration potential."
About Hunt Mining
Hunt Mining Corp. has been an active and aggressive explorer in Santa Cruz since 2006. During that time, Hunt's wholly owned subsidiary, Cerro Cazador S.A., has completed a large amount of exploration activity including approximately 57,000 meters of HQ core drilling, 416 line kilometers of Induced Polarization geophysical surveys and more than 15,000 surface channel, chip, and trench samples. Hunt Mining has recently entered into an exploration agreement with Eldorado Gold for exploration and development in the Santa Cruz Province of Argentina. Historical results and additional information can be viewed at www.huntmining.com.