Buenos Aires / TheNewswire / July 12, 2017, - AbraPlata Resource Corp. TSX.V:ABRA ("AbraPlata" or the "Company") (TSX-V: ABRA) (Frankfurt:1AH) (OTCQB:ABBRF) is pleased to announce that it has reached an agreement to acquire certain third party mineral rights that, as a result of a long-standing border dispute between two neighbouring provinces in northwestern Argentina, overlap, and potentially conflict with, the Company's mineral rights to its Diablillos Ag-Au project (see Figure 1 attached). The acquisition of the potentially conflicting mineral rights will allow the Company to retain its title to the Diablillos Ag-Au project regardless of the ultimate outcome of the provincial border dispute.
The Diablillos property lies within the border zone between the Province of Salta and the Province of Catamarca. For many years, the definitive border line between Salta and Catamarca has been in dispute and the Diablillos property falls within territory claimed by both provinces. In 1984, the government of Salta granted mineral rights to the Diablillos property to one of the Company's predecessors-in-title (see Figure 2). In the early 2000s, the government of Catamarca granted to a third party mineral rights in the same area (see Figure 3), some of which overlapped with the Diablillos mineral rights previously granted by the government of Salta, thereby creating the potential for conflicting titles pending the resolution of the border dispute, a matter falling within the jurisdiction of the federal government under the Constitution of Argentina. Additional details respecting the provincial border dispute and the potentially conflicting titles to the Diablillos property can be found in the Company's Filing Statement dated March 1, 2017, a copy of which is filed under the Company's profile on SEDAR (www.sedar.com).
The Company has reached an agreement with the shareholders of Minera Cerro Bayo SA ("Cerro Bayo" or "MCB"), the owner of the conflicting mineral rights granted by the government of Catamarca, to acquire a 100% equity interest in Cerro Bayo, thereby indirectly acquiring ownership and control of the conflicting mineral interests. As consideration, the Company will pay US$ 3.325 million in cash and issue 500,000 common shares of the Company to the shareholders of Cerro Bayo in instalments over a five year period. The agreement is subject to approval by the TSX Venture Exchange as well as legal due diligence and negotiation of definitive documentation.
"We are extremely pleased to finally resolve the overlapping claims situation at Diablillos" commented Hernan Zaballa, Executive Chairman of AbraPlata, adding that "....the uncertainty created by the provincial border dispute has confounded previous operators in the past and, by owning the overlapping rights on both sides of the dispute, we have effectively removed a key obstacle to the further development of the Diablillos project".
Despite the Company's belief that its existing title to the Diablillos property should ultimately prevail once the provincial border dispute is finally decided by the federal government of Argentina, resolution of the dispute may take many years and, as long as the dispute remains ongoing, uncertainty as to the integrity of the Company's title would otherwise continue to exist, thereby hampering the Company's efforts to develop the project. The Company is aware of other mining companies operating in the vicinity of the Diablillos property who, in the face of similar potential title risks resulting from the provincial border dispute, have used the same strategy as AbraPlata to mitigate the risks by acquiring and effectively consolidating ownership and control of any and all overlapping and potentially conflicting mineral rights granted by both Salta and Catamarca.
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Qualified Person
Willem Fuchter, PGeo, President and CEO of AbraPlata Resource Corp. and a qualified person as defined by National strument 43-101 Standards of Disclosure for Mineral Projects, has reviewed and approved the scientific and technical information contained in this news release.
About AbraPlata
Abraplata is a junior mining exploration company focused on delivering shareholder returns by unlocking mineral value in Argentina. The Company's experienced management team has assembled an outstanding portfolio of gold, silver and copper exploration assets, and is focused on advancing its flagship Diablillos property, with an indicated resource of 81.3m oz Ag and 755k oz Au, through the various stages of feasibility. In addition, AbraPlata owns the the highly prospective Cerro Amarillo property with its cluster of five mineralized Cu-(Mo-Au) porphyry intrusions located in a mining camp hosting the behemoth El Teniente, Los Bronces, and Los Pelambres porphyry Cu-Mo deposits. Further exploration work is also planned for the Company's Samenta porphyry Cu-Mo property, located south of First Quantum's TacaTaca project, as well as its Aguas Perdidas Au-Ag epithermal property.
ON BEHALF OF THE BOARD
ABRAPLATA RESOURCE CORP.
" Willem Fuchter "
Willem Fuchter
President & Chief Executive Officer
For further information concerning this news release, please contact:
Willem Fuchter Karl Cahill
President & Chief Executive Officer VP Investor Relations
AbraPlata Resource Corp. AbraPlata Resource Corp
Tel: +54.11.5258.0920 Tel: +1.858.531.6100
E-mail: willem@abraplata.com Email: karl@abraplata.com
This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. All statements that address future plans, activities, events or developments that the Company believes, expects or anticipates will or may occur are forward-looking information. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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