Vancouver, BC –International Mining Corp (CSE: IMCX) (the “Company” or “IMC”),is pleased to announce that it has signed a letter of intent (“the “LOI”) with Orosur Mining Inc.(“Orosur”)with a view to potentially purchasing its mining,exploration, and prospecting permits(the “Permits”)in the Isla Cristina Rivera Greenstone Belt (“ICR”) of Uruguay(“Potential Transaction”).
The Potential Transaction remains subject to completion of due diligence and receipt of all necessary corporate and regulatory approvals.Pursuant to the LOI, IMC will have a 45-day exclusive due diligence period, and access to an extensive Orosur database hosting years of historic geological exploration and exploitation data. Upon completion of due diligence favourable to the Company, and subject to negotiation of a definitive agreement and receipt of all necessary corporate and regulatory approvals, IMC will purchase control of the Permits by making staged payments totalling US$1,000,000 over a one (1) year period from the date of closing of the Potential Transaction.
Orosur controls, via the Permits, an area of 58,798 hectares (~588 km2) of the ICR greenstone belt including the past producing San Gregorio mineof the Minas de Corrales mining complex. The San Gregorio area boasts at least nine open pits and one underground mine, and has produced approximately 1.4Moz of gold since the San Gregorio plant was commissioned in 1997(March 15 2010 -Technical Report on the Arenal Deeps Deposit Minas de Corrales Project Department of Rivera, Uruguay, and Orosur Annual Information Forms for the years ended May 31, 2013, 2016 & 2019, all of which documents are available under Orosur’s profile on SEDAR).Despite the multiple operations in this particular area, the greenstone belt itself is relatively under-exploredwith many potential gold prospects based on previous geologic exploration including geochemistry, geophysics and drilling.Project infrastructure, access, power and communications are all good with access by paved road, grid and cellular connection,and a local workforce in Minas de Corrales, a town approximately 5km from the mine.The Company also wishes to announce that it intends to complete a private placement (“Private Placement”) of up to 2,500,000 units (“Units”) at a price of $0.46 CDN per Unit. Each Unit will be comprised of one common share and one-half of one common share purchase warrant (“Warrants”), with each whole Warrant exercisable for one common share of the Company at a price of $0.92 CDN for a period twenty-four (24) months from the date of issuance. The Company will use proceeds from this Private Placement for general working capital.The Company will provide further updates regarding the Potential Transaction and Private Placement in due course.