VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 05/29/13 -- MARIFIL MINES LTD. (TSX VENTURE: MFM) ("Marifil" or "the Company") announces that it has signed a definitive agreement with Southern Copper Argentina ("SCA"), a wholly owned subsidiary of Southern Copper Corporation (NYSE: SCCO) for SCA to acquire a 70% equity interest in the Company's Cerro Samenta porphyry copper project in Salta Province, Argentina (see Marifil News Release dated Feb. 29, 2012 for details on the Cerro Samenta Property).
The agreement is subject to the following terms to earn a 70% equity interest in the property (all dollar amounts shown are in United States Dollars):
1. SCA will pay Marifil a total of $375,000 over four years including $75,000 on signing the agreement2. SCA will carry out a minimum $4 million work program on the property over four years SCA will make the contract payments on behalf of Marifil to two underlying property owners over a six years period.
Additionally, SCA can increase their equity interest from 70% to 80% by providing Marifil with a bankable feasibility study within seven years of the date of signing.
Mr. John Hite states, "We welcome Southern Copper as a partner to help us develop this porphyry copper property. The past two years have been particularly difficult for the junior market with the stock prices of almost half of all TSX-V listed companies being under 10 cents per share."
"This agreement also removes the financial burden of the underlying property payments and advances our business model by having other companies finance exploration on our properties."
"We are excited to work with Southern Copper, a major producer who brings development and production experience to Cerro Samenta. Argentina has received some bad press suggesting that it is a poor place to invest. We disagree with this assessment and point out that not only is SC planning to explore and develop projects in Argentina but other major companies such as Chevron, Agrium, Barrick, and Xstrata are also spending billions of dollars on new projects."
About Southern Copper Corp.
Southern Copper Corporation is an integrated copper producer and in 2011 was the 7th largest copper producer in the world with sales of $6.8 billion. SC produces copper, molybdenum, zinc and silver. All of its mining, smelting and refining facilities are located in Peru and Mexico, and SC conducts exploration activities in those countries and in Argentina, Chile and Ecuador. The Company operates in three segments: Peruvian operations, Mexican open-pit operations and Mexican underground mining operations. Peruvian operations include the Toquepala and Cuajone mine complexes and the smelting and refining plants, industrial railroad and port facilities. The Peruvian operations produce copper, with production of by-products of molybdenum, silver and other material. Mexican open-pit operations include the La Caridad and Buenavista mine complexes and the smelting and refining plants and support facilities, which service both mines. The Mexican open-pit operations produce copper, with production of by-products of molybdenum, silver and other material.
SC was incorporated in the USA as Southern Peru Copper Corp. a subsidiary of ASARCO Inc. In 1999 Grupo Mexico S.A.B. de C.V. acquired 100% of ASARCO Inc. Grupo Mexico controls SC through a subsidiary Americas Mining Corp.
On Behalf of the Board of Directors,
John Hite, President
For further information regarding Marifil Mines Ltd., please refer to the Company's filings available on SEDAR (http://www.sedar.com) or at Marifil's Website (http://www.marifilmines.com).
This press release has been reviewed and approved by John Hite, President of Marifil Mines Ltd. and by Richard Walters, Vice President under whose directions the exploration program is being carried out. Mr. Hite and Mr. Walters are Qualified Persons as defined by National Instrument 43-101.
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