July 7, 2015
Cerro Dorado Inc., a Nevada Corporation (“the Company”), is announcing today that legal counsel for the Company, Michael Labertew, traveled to Santiago, Chile the week of June 23, 2015, for purposes of reviewing and confirming the Company’s mining claims located approximately 30 km northwest of Santiago, as well as exploring additional mining and business opportunities for the company in the region. To that end, Michael met with Jose Manuel Bórquez, a Chilean attorney who has almost 30 years of mining law experience in over a dozen countries, including Chile, the U.S. and Canada. He has worked for several Fortune 500 companies, and, in addition to his law degree from the University of Chile, studied law at Georgetown University.
Michael spent over ten hours with Mr. Bórquez over a four-day period. During that time, Mr. Bórquez reviewed numerous documents and agreements provided by Michael related to the Company’s mining claims and its Chilean subsidiary, Cerro Dorado Chile, formally known as “Sociedad Contractual Minera Cerro Dorado Chile.” Michael and Mr. Bórquez also spent several hours of their time at the Mining Registry of Santiago, where the Company’s mining claims are filed. It was previously believed that these filings may have been made in the nearest town to the mining claims, Lampa, Chile, but due to Lampa’s small size, they are actually filed in Santiago. Michael and Mr. Bórquez also discussed whether to physically visit the mining property, but based on a variety of reasons, circumstances did not allow for it on this trip.
In addition to the mining claims themselves being filed with the Mining Registry of Santiago, the formation documents of Sociedad Contractual Minera Cerro Dorado Chile are filed there as well. Unlike corporate filings in the U.S. that are made with a submission to a Secretary of State or Division of Corporations, Chilean mining companies are formed by a filing with the Mining Registry. In addition, a “shell” mining company cannot be created in Chile, but rather, a mining claim, or as it is referred to in Chile, a mining “concession,” must exist with the mining company at the time that it is originally submitted to the Mining Registry.
Michael and Mr. Bórquez personally reviewed the registry records of Sociedad Contractual Minera Cerro Dorado Chile and the mining concessions, which records were located and cross referenced in approximately eight separate registry books, and which searches were conducted with the assistance of the Director of the Mining Registry, with whom Michael and Mr. Bórquez met.
The formation document for Sociedad Contractual Minera Cerro Dorado Chile (of which the Company already has a Spanish as well as English translated copy) is filed with the Mining Registry at page 21 (back page), No. 12 (transaction), Property Registry of 2000.
The confirmation document for Lonco Millarepu 1-60 is filed with the Mining Registry at page 24, Property Registry of 2000, on page 24, confirming that it was transferred to and is owned by Sociedad Contractual Minera Cerro Dorado Chile. The original concession for this mining claim was granted in 1993, and was transferred to Sociedad Contractual Minera Cerro Dorado Chile in the year 2000, as part of that company’s formation.
The confirmation document for Fortuna 61-120 is filed with the Mining Registry at page 294 (back page), Property Registry of 2014. The original concession for this mining claim was granted in in 2008, and was transferred to Sociedad Contractual Minera Cerro Dorado Chile on July 2, 2014.
As previously reported in our April 27 Shareholder Update, there were two additional mining concessions in the immediate area, which former management has stated were acquired and owned by Sociedad Contractual Minera Cerro Dorado Chile, by way of an issuance of common stock at the same time the Fortuna was acquired. Documents in current management’s possession indicate that these concessions were subsequently lost at auction due to non-payment of fees and/or taxes related to these two mining concessions. Unfortunately, Michael and Mr. Bórquez did not have time to review the historical registration of these concessions, but they were able to verify that these claims are not currently registered to Sociedad Contractual Minera Cerro Dorado Chile. Management has requested that Mr. Bórquez provide historical information related to these concessions as part of his formal report to be delivered to the company in the coming weeks.
Management has received inquiries about whether the Company should take action to attempt to recover the two aforementioned concessions. However, until it receives and is able to review the report from Mr. Bórquez, Management is not able to fully assess the circumstances respecting the concessions or the likelihood that any action would be successful. Taking into account the time and cost of any such action, coupled with the Company's current financial situation at this time, management does not believe it would result in a positive return on such an investment of resources, even if successful.
Going forward, management will continue to explore potential opportunities for the company, including two that were discovered by Michael while in Santiago, as well as additional prospects that are currently being investigated in the U.S. in the intermountain region. In compliance with Regulation FD, management will not be disclosing further details related to these opportunities unless and until one or more of them result in an executed agreement, letter of intent or similar document.
Kindest Regards
Cerro Dorado Inc.
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