TORONTO, June 09, 2020 (GLOBE NEWSWIRE) -- Magna Terra Minerals Inc. (the “Company” or “Magna Terra”) (TSX-V: MTT) is pleased to announce that through its 100% owned Argentine subsidiary-Atala Resources S.A. (“Atala”) it has entered into an Agreement to sell its wholly owned Boleadora Project in Santa Cruz Province, Argentina, to Oroplata S.A. (“Oroplata”) a subsidiary of Newmont Corporation (“Newmont”). The Boleadora Group of properties is a large greenfields exploration land package (approx. 55,000 hectares) encompassing 12 individual MD’s or exploration licenses lying approximately 17 kilometres south-east of Newmont’s Cerro Negro mine area in Santa Cruz Province, Argentina. Newmont (Oroplata) will pay Magna Terra (Atala) US$1 million as follows: $25k on signing and six installments totalling $975k payable within six years from the date of the Agreement. In addition, Newmont (Oroplata) has granted a 2% NSR to Magna Terra (Atala) on the Boleadora package. The royalty can be reduced to 1% by payment of US$2.5M by Oroplata to Atala at anytime, and the gross royalty payable is capped at US$20M.
Lew Lawrick, President & CEO of Magna Terra commented; “We are very pleased to have entered into this agreement to sell Boleadora to Newmont. While it is a very large and early stage exploration package, its proximity to the Cerro Negro mine site makes it of strategic interest to Newmont from an exploration perspective. The bulk of the property package lies along trend of the NNW structural control that is an important geological feature at Cerro Negro. Including Boleadora into Newmont’s regional Cerro Negro exploration program, along with the application of their proven exploration technologies, will add significant value to the project, and ensure that it is advanced in the near term.”
Noyell Property Update
The Company is also pleased to announce that pursuant to an Option Agreement with Opus One Resources Inc regarding the Noyell Property (see press release dated April 12, 2019), Magna Terra has received an option payment of $50,000 (1,000,000 Opus One common shares and $11,900 cash). Magna Terra now owns 1,900,000 common shares of Opus One, and will continue to hold the shares for investment purposes.
About Magna Terra
Magna Terra Minerals Inc. is a precious metals focused exploration company, headquartered in Toronto, Canada. With the closing of the ExploreCo Acquisition, Magna Terra will have 2 district-scale, advanced gold exploration projects in the world class mining jurisdictions of New Brunswick and Newfoundland and Labrador. The Company maintains a significant exploration portfolio in the province of Santa Cruz, Argentina which includes its precious metals discovery on its Luna Roja Project, as well as an extensive portfolio of district scale drill ready projects available for option or joint venture.
Cautionary Statements Regarding Forward Looking Information
Some statements in this release may contain forward-looking information. All statements, other than of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding potential mineralization) are forward-looking statements. Forward-looking statements are generally identifiable by use of the words “may”, “will”, “should”, “continue”, “expect”, “anticipate”, “estimate”, “believe”, “intend”, “plan” or “project” or the negative of these words or other variations on these words or comparable terminology. Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the Company’s ability to control or predict, that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations include, among other things, without limitation, failure by the parties to complete the Acquisition, the possibility that future exploration results will not be consistent with the Company's expectations, changes in world gold markets or markets for other commodities, and other risks disclosed in the Circular and the Company’s public disclosure record on file with the relevant securities regulatory authorities. Any forward-looking statement speaks only as of the date on which it is made and except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement.