MINEROS: CB - MSA: TSX Bandera de Chile Bandera de Colombia Bandera de Nicaragua

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Mineros S.A. consolidates 100% of the Luna Roja Project in Nicaragua
Mar, 2

Mineros S.A. consolidates 100% of the Luna Roja Project in Nicaragua

Mineros S.A. is pleased to announce the closing of the negotiation of the Final Agreement with Royal Road Minerals Limited for the acquisition of 50% of Royal Road’s interest in the Luna Roja Project, which includes mining concessions Monte Carmelo I and Monte Carmelo II in Nicaragua. 

This transaction was approved by the Board of Directors of Mineros S.A. in its meeting dated December 16, 2020, in which the Binding Intention Letter was subscribed. The Agreement was executed by the subsidiaries Hemco Nicaragua S.A (“Hemco”), which is 100% property of Mineros S.A., and Minerales Camino Real SAS (“MCR”), 100% property of Royal Road Minerals Ltd.

Luna Roja Project is currently jointly owned and operated by Royal Road Minerals and Hemco, in accordance with terms and conditions of their Strategic Alliance Agreement dated September 1, 2017.  

Through this Transaction, Mineros S.A., via Hemco, consolidates 100% property of the Luna Roja Project.  

“This transaction consolidates our interest in an asset which we consider has a significant potential. Luna Roja also benefits from being close to our Hemco operations center, which shall allow synergies and the elimination of risks for the initiation of the Project. We will continue exploring, expecting a declaration of resources in the near future", said Eduardo Flores Zelaya, VP of Development and Strategy of Mineros S.A.

“Luna Roja confirms our decision to associate with an experienced exploration group, such as Royal Road, to unblock the large-scale property value of Mineros S.A. in Nicaragua. The exploration potential we see in the Golden Triangle of Nicaragua makes an integral part of our long-term organic growth strategy. We expect to continue with our mission and cooperating with Royal Road", stated Andrés Restrepo, CEO of Mineros S.A.

The purchasing Price was the following: 

a. USD 24.48 million to be paid in cash, on the Transaction closing date, plus; 
b. A royalty of 1.25% over the entire future production of ore from Monte Carmelo I and Monte Carmelo II. 

Additionally, Royal Road Minerals undertakes the re-investment of USD 7.5 million in exploration activities during the Joint Venture period, which will continue in effect for other projects in Nicaragua.  

Luna Roja Project

Luna Roja is a gold skarn exploration project located in the Hemco Property, approximately 26 kms. southeast of Mineros’ Panama Mine, in the Golden Triangle northeast of Nicaragua, a region with epithermal, skarn and porphyry deposits which has been in operation since the early 1900s, having produced more than 8 million ounces of gold.

Advisor: Sprott Capital Partners LP acted as Mineros S.A.’s exclusive financial advisor in this Transaction.  

For more information:

Patricia Ospina C., Director of Investor Relations of Mineros S.A.

About Mineros  S.A.

Mineros S.A. is a Colombian company with more than 46 years of experience in gold exploration and production, with mining operations and development projects in Colombia, Argentina and Nicaragua, and a purchase option which is in its exploration stage, in Chile. Our operations include the Alluvial Property in Nechí, Colombia, Gualcamayo Mine in the Gualcamayo Property in Argentina, and the Panama and Pioneer Mines in the Hemco Property in Nicaragua.  Mineros S.A. has worked with the commitment to implement sustainable processes for its optimal management of minerals, including conservation of diversity and the environment, the wellbeing of all its stakeholders and the economic and social development of the regions where Mineros S.A. has operations. Today, these best practices make Mineros S.A. an important reference in the mining sector. 
For more information, visit: www.mineros.com.co.

Note of Caution

In this communication, "future information" may include, without limitation, statements made with regards to the closing of Luna Roja Transaction. Projections are based on Management’s opinions and estimates as of the date in which such statements are made and are based on several assumptions. Projections include known and unknown risks, uncertainties and other factors which may cause that the actual results, performance, or achievements are materially different from any future result, performance or achievement expressed or implicit in the projections.  Such factors include, among others, the capacity to complete the Luna Roja transaction, to have the applicable regulatory approvals, the commercial, economic, competitive, political, and social general uncertainties, the actual results of exploration activities, changes in Project parameters if plans continue being refined, accidents, labor disputes, political instability, and other risks in the mining industry.
Although the Company has tried to identify important factors which could cause that the actual actions, events, or results are materially different from those described in the projections, there may be other factors causing such actions, events or results to be different from those anticipated or estimated. Projections herein are made as of the date in which this press release is published. The Company is not liable for the updating of any prospective statements, either as the result of new information, future events, or results, except as permitted by applicable law. There is no guarantee of the projections’ accuracy since actual results and future events may be materially different from those anticipated in such statements. 

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