|October 09, 2014|
Indico Announces Successful Renegotiation of Final Payments at Ocaña
|Vancouver, British Columbia -- Indico Resources Ltd. ("Indico" or the "Company") (TSX-V: IDI) is pleased to announce that the final payment of US$15.5 million due in April 2015 towards the acquisition of a 100% interest in the Ocaña Porphyry Copper-Gold Project has been amended, resulting in a 1% NSR on commercial production at the Ocaña project and a five year extension of the terms of the payment. |
Under the terms of the amended payment schedule, Indico will pay US$1.5 million in April 2015 and US$2.0 million in April 2016, 2017 and 2018. A final payment of US$7.99 million will be due in April 2019. In addition, a cash payment of $50,000 is due if mine construction has not commenced by June 30, 2016. Advance royalty payments of $300,000 are payable from June 30, 2018 onwards and can be discounted from future royalty payments by 20% per year.
President and CEO, Bob Baxter stated: "The extension of the payment period on the Ocaña property into what we consider our production phase is welcome news, allowing us to advance the project at this time without the large payment that we had facing us. We look forward now to catching up with investors that had previously flagged the large payment as an impediment to advancing the Ocaña project."
The Company also announces that it has relinquished its rights under the MOU on the Maria Reyna project, near Cusco Peru. Of the two properties, Ocaña offers the better short-term upside, and therefore the Company has decided to focus all its financial and human resources on Ocaña.
The Ocaña Property consists of 23 concessions covering 123 km2 and is located on the northwest extension of the Southern Peru Porphyry Copper Belt, a trend defined in part by the Toquepala, Quellaveco, Cuajone, and Cerro Verde Mines to the southeast. Most recent exploration of the belt has resulted in discovery of the Zafranal copper-porphyry deposit, located approximately 75 km to the southeast of the Ocaña Property. Significant hypogene (primary sulphide) mineralization underlies the supergene zone at Ocaña, with intersections of >0.2% copper occurring over 800 metres east-west, and 600 metres north-south. Mineralization continues to the north onto the neighbouring property and is currently being drilled by Pembrook Mining Corp. as part of their Pecoy project.
John Drobe, P.Geo., Indico's Chief Operating Officer and a qualified person as defined by National Instrument 43-101, has reviewed the scientific and technical information that forms the basis for this news release. Mr. Drobe is not independent of the Company, as he is an officer.
On behalf of Indico Resources Ltd.
President and Chief Executive Officer
Robert Baxter -- President and Chief Executive Officer
Vancouver: +1-778-9281864 / Lima: +51-963762648
Dennis Nenadic -- IR/Corporate Communications
Phone: (604) 398-5379 / Fax: +1(604) 398-5387
Neither 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.
A Note on Canadian Anti-spam Legislation
For subscribers to Indico's email list who are not receiving updates via email, the company urges subscribers to give their consent in order to comply with Canada's new anti-spam law which came into effect on July 1, 2014. Consent is required to continue to receive important information including news, publications and invitations to programs and events. If you did not consent prior to July 1, 2014 but still wish to receive information simply re-submit your email and name through the company's website. You will then receive an email from Indico asking you to opt-in for receiving information by email from the company. Once you have agreed to receiving email updates by opting in, Indico will then continue to send updates by email. All your information is kept confidential and you may unsubscribe anytime if you no longer wish to receive updates.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward looking information" within the meaning of the British Columbia Securities Act and the Alberta Securities Act. Generally, the words "expect", "intend", "estimate", "will" and similar expressions identify forward-looking information. By their very nature, forward-looking statements are subject to known and unknown risks and uncertainties that may cause our actual results, performance or achievements, or that of our industry, to differ materially from those expressed or implied in any of our forward looking information. Statements in this press release regarding Indico's business or proposed business, which are not historical facts, are forward-looking information that involve risks and uncertainties, such as estimates and statements that describe Indico's future plans, objectives or goals, including words to the effect that Indico or management expects a stated condition or result to occur. Since forward-looking statements address events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements. Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are made. All of the Company's Canadian public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials, including the technical reports filed with respect to the Company's mineral properties. The foregoing commentary is based on the beliefs, expectations and opinions of management on the date the statements are made. The Company disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise.
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