VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 02/20/13 -- INCA ONE RESOURCES CORP. (TSX VENTURE: IO) ("the Company" or "Inca One") is pleased to announce that as a result of the Option Agreement made with Canadian Mining S.A., it has started the formalization process for the development of the Corizona Mining Concession ("Corizona Project" or "the Project") in Lima, Peru.
The 259 hectare Corizona Project is located in the area of Cruz de Laya-La Mina, Peru approximately 85 kilometers from the city of Lima or a 2.5 hour drive.
The completion of a formalization process is required by Peruvian law and will allow the Company to explore and produce up to 350 tons per day while working towards formal operating permits and authorizations on the Project.
This legal process, imposed last year by the Peruvian government, encourages the formalization of unregulated mining activity to ensure that all small-scale miners (mining less than 350 tons per day) have formalized their mining operations.
The company was required to submit a Statement of Commitment to the Peru Ministry of Mines (MINEM) by November 28, 2012. There were 77,000 statements submitted to MINEM of an estimated 100,000 small-scale miners. The formalization process grants the Company a grace period of two years in which it must present all required studies and apply for commercial operating permits, valid through to April 2014.
"Inca One is delighted to get things underway on its newly-acquired, highly-prospective Corizona Gold Project," said Edward Kelly, President & CEO of Inca One. "We know Peru's legal framework very well through our Las Huaquillas project in San Ignacio and are confident that our in-country permitting experience will quickly advance the Corizona Project permitting process."
On February 7, 2013, Inca One acquired an option to earn a 100% interest in the Corizona high-grade gold project. The Project contains a large hydrothermal system with gold hosted in a hematite-chlorite-quartz epithermal vein system. Previous work and sampling from these veins have reported very consistent grades of more than 10 g/t Au over vein widths of 0.5 to 1.5 meters. Several samples from this previous work also reported over 100 grams per ton.
Once approval has been received from the Ministry of Energy and Mines confirming the Company's ownership of the mining concession, Inca One will apply for all necessary social permits and baseline studies and commence preliminary exploration on the Corizona Project. In the meantime, Inca One will commence a cleanup and safety plan to prepare the Corizona Mine for bulk sampling of up to an initial 50 tons per day. This process is expected to take 90 days.
Private Placement Offering
Inca One also plans to issue up to 10,000,000 units ("Units") in a non-brokered private placement at a price of $.10 cents per Unit to raise $1,000,000.00. Each Unit will consist of one common share of the Company and one half share purchase Warrant, where each Warrant will allow the subscriber to purchase one additional common share of the Company at an exercise price of $0.20 per share for a period of 12 months from the date of closing, subject to adjustment/acceleration under certain circumstances.
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