VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 06/26/13 -- Focus Ventures Ltd. (TSX VENTURE: FCV) ("Focus") is pleased to announce that it has signed a Letter of Intent with Red Copper Resources Inc. ("RCR") whereby RCR can acquire a 70% interest in Focus' Aurora porphyry copper-molybdenum-silver deposit, subject to legal due diligence and financing.
David Cass, President of Focus, comments: "We are very pleased to have reached an agreement with RCR, who bring a wealth of international porphyry copper exploration and evaluation experience to the project. We have made good progress to date at Aurora and look forward to working with RCR. Our joint goal is to delineate a large porphyry copper-molybdenum system at Aurora."
Aurora is an advanced stage porphyry exploration project that is currently being permitted for a major drill program. Thirteen historical drill holes, totaling 3,900m that were drilled over an area approximately 900m by 800m, cut significant intervals of copper and molybdenum mineralization including 190m @ 0.57% Cu, 0.008% Mo in DDA-1, 142m @ 0.5% Cu, 0.004% Mo in DDA-3, and 71.7m @ 0.7% Cu, 0.007% Mo in DDA-3A (see Focus news release July 11, 2012).
Red Copper Resources Inc. is headed by CEO and President, Ian Gendall, who is a well-known expert in the exploration and evaluation of porphyry copper deposits and credited with major porphyry copper discoveries in the Corriente Copper Belt of SE Ecuador. Mr. Gendall has led and managed exploration teams for Gencor, Billiton, and Anglo American.
RCR will have an exclusive right and option to acquire up to a 70% interest in the Aurora property by making staged investments in exploration and drilling over a period of 4 years. RCR can acquire an initial 50% interest in the property (the "First Option") by drilling 10,000m and investing no less than $3 million within the first 24 months of the issuance of drill permits, of which 3,600m of drilling and spending $1,200,000 within the first 6 months are commitments. RCR can acquire an additional 20% interest by completing a further 20,000m of drilling within 36 months of the granting of drill permits and investing a further $4 million, to include the completion of a Preliminary Economic Assessment or Pre-feasibility Study by the end of the 4th anniversary (the "Second Option").
If RCR elects to continue the First Option after completing the initial investment of $1,200,000 and 3,600m of drilling, it must make a $500,000 private placement in common shares of Focus at a 15% premium to market, subject to regulatory approval. In order for RCR to exercise the Second Option, RCR must make an additional private placement in Focus of $2,500,000 within 30 days of the completion of the additional 20,000m of drilling and investment of $4 million. Focus will remain the operator of the project until RCR earns its 70% interest.
Focus has granted RCR a 45 day period from the date of signing of the Letter of Intent, to complete financing arrangements and legal due diligence.
The Aurora porphyry copper-molybdenum project is located approximately 65 km north of the city of Cusco, between 2,600 - 2,900m above sea level.
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