Business
Cardero Options Organullo Gold Project, Northwest Argentina, to Artha Resources Corporation
Cardero Resources Corp . (“Cardero” or the “Company”) (TSX: CDU)(N...
About this update from Latin Metals Inc
[{"type":"text","content":"\nCardero Options Organullo Gold Project, Northwest Argentina, to Artha Resources Corporation\n\nCardero Resources Corp. (“Cardero” or the “Company”) (TSX: CDU)(NYSE: CDY) is pleased to announce that the Company has optioned its Organullo Gold project to Artha Resources Corporation (“Artha”), whereby Artha can earn an undivided fifty-five (55%) percent working interest in the Organullo Project, and thereafter form a Joint Venture with Cardero Argentina S.A., a wholly owned subsidiary of Cardero.\nJoint venturing of the Organullo Project is part of Cardero’s strategy to option-out all non-core assets, allowing the Company to focus on development of its coal and iron ore projects. This includes the Carbon Creek deposit in north-eastern British Columbia controlled by Cardero, where the 2011 summer field season and collection of feasibility-level engineering and environmental data is in progress.\nDetails of Agreement with Artha\nThe Option Agreement with Artha has the following terms and is subject to TSX Venture Exchange (the “Exchange”) acceptance on behalf of Artha. Artha has the option (the “Option”) to earn an undivided 55% right, title and working interest in and to the Organullo property by incurring an aggregate of USD 1,500,000 in exploration expenditures over four years (USD 250,000 by September 9, 2012) and by issuing an aggregate of 350,000 common shares in the capital of Artha, also over three (3) years (50,000 shares within 15 days of Exchange acceptance). Upon Artha having earned its initial 55% interest, Cardero has a right to maintain its 45% interest through pro rata funding of exploration work going forward. Alternatively, Cardero may choose to be diluted down to a minimum of 10%, at which point its interest will be converted to a 2% NSR royalty.\nThe Organullo Gold Project\nThe Organullo project is an relatively advanced epithermal gold-silver project located in northern Salta Province, north-west Argentina, with excellent potential for both high sulphidation type epithermal high grade gold and silver as well as bulk tonnage lower grade gold and silver mineralization. The Organullo project includes several drill-ready targets, with a focus on delineating both large bulk tonnage potential as well as higher grade zones in dilatant structu...