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News Release
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YALETOWN ENTERTAINMENT CORP. 407 - 535 Howe Street, Vancouver, B. C. V6C 2Z4 Tel: (604) 688-0118 Fax: (604) 688-3348 CUSIP# 984909101 Rule 12g3-2(b)# 82-4336 |
September 8, 1997 A.S.E Trading Symbol: YAL
YALETOWN SIGNS PROJECT TALTAL
VANCOUVER, B. C., CANADA ------Yaletown Entertainment Corp. (the "Company") announces that it has entered into an Agreement with Minera Terra Santa Ltda. ("Terra Santa") whereby Terra Santa will assign to Yaletown Mining Company S.A. all of Terra Santa's rights to a series of Intentions to Option certain mineral resource properties located in northern Chile collectively called Project Taltal.
Pursuant to the terms of the Agreement Terra Santa will receive 1,000,000 common shares of the Company, such shares to be issued into escrow and released in five equal annual instalments commencing upon commercial production from Project Taltal with subsequent releases being contingent upon continued production. The Company will also assume option payments agreed in the Intentions to Option aggregating U.S.$6,500,000 over four years with an additional U.S.$2,000,000 to acquire certain residual and royalty interests. Lastly, the Company will pay to Terra Santa an amount not to exceed U.S.$100,000 relating to its land assembly costs and efforts.
Project Taltal consists of the Celebration 1 to 7, 11 and 15 claims, the Tori 1 to 4 claims, the Islena claim, the Union claim, the Vallenarina claim, the Puerta and Puerta 13 claims, the Humberto claim and the Elba 1 and 2 claims. The Company has the right to acquire 100% of all properties except the Elba 1 and 2 claims over which it has the right to acquire 60.4% which constitutes control under Article 189, the 'majority rules' clause, of the Chilean Mining Code. The properties aggregate approximately 27 square kilometres.
Project Taltal is located in the Atacama desert 285 kilometres south of Antofagasta and 20 kilometres east of the seaport town of Taltal at an elevation of less than 1,000 metres. The property is bisected by the paved Pan American highway along which high tension public power lines are sited. The property has a good basic infrastructure, an available work force and can be worked year round.
Historically, numerous areas of Project Taltal have been mined by local miners using primarily hand methods, the most significant of which are the Union Mine and the Humberto Mine.
The Union Mine, according to sales records from Enami, the Chilean government ore purchasing agency, produced 84,208 tonnes of ore grading from 1.22% to 5% copper and containing 725,262 ounces of silver from sporadic mining during the period 1966 to 1982.
Similarly, the Humberto Mine, currently in production by local miners, again according to Enami records, produced 8,544 tonnes of 2.438% copper ore containing 616,875 pounds of copper and 1604 ounces of silver during 8 months of 1995; produced 19,300 tonnes of 2.69% copper ore containing 1,142,475 pounds of copper and 15,708 ounces of silver during 12 months of 1996; and produced 10,242 tonnes of 2.93% copper ore containing 661,498 pounds of copper and 11,525 ounces of silver during the first six months of 1997 for an aggregate production of 2.42 million pounds of copper and 28,800 ounces of silver over the past 26 months, all by hand methods.
The Company has retained legal counsel specializing in Chilean mining law to complete all acquisition documentation and deliver title opinions as soon as possible and has engaged a geological consultant to produce a comprehensive report on Project Taltal.
The acquisition of Project Taltal is subject to Alberta Stock Exchange approval.
Yaletown Entertainment Corp. is a Canadian film producer with diversified interests in mineral resource exploration in South America. The company is listed on the Alberta Stock Exchange under trading symbol YAL.
For further information, please contact Mr. John Cumming, Chief Executive Officer, at tel: (604) 688-0118.
John C. R. Cumming
John C. R. Cumming, Director, Chairman & C.E.O.
THE ALBERTA STOCK EXCHANGE HAS NEITHER APPROVED NOR DISAPPROVED OF THE CONTENTS OF THIS PRESS RELEASE.
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Yaletown Entertainment Corporation, Vancouver B.C. Canada
tel: (604) 669-3543 - Executive/Production Offices
Canadian Venture Exchange: ECY