Cascadero Signs Option To Acquire 51% Interest In The Santa Rosa Property
May 2, 2006
Cascadero Copper Corporation ("Cascadero") announced today that it has signed an Option Agreement with Argentine Frontier Resources Inc. ("AFRI") and Salta Exploraciones S.A. ("SESA") to acquire a 51% interest in the Santa Rosa Property by spending US$2 million on exploration, paying CDN$150,000 in cash and issuing 1,250,000 common shares.
Mr. Bill McWilliam, Mr. Bradley L. Jones and Mr. Michael A. Denega, are officers and/or directors of Cascadero and AFRI. Three of the directors of Cascadero, Mr. Bill McWilliam, Mr. Bradley L. Jones, and Mr. Michael A. Denega, are also directors of AFRI, which is a private British Columbia company. Cascadero and its parent company, Stealth Minerals Limited (SML: TSXV), have subscribed for shares of AFRI, and expect to jointly own more than 20% of AFRI following issuance of those shares. The individual directors of Cascadero have also subscribed to purchase shares of AFRI. SESA is a wholly owned subsidiary of AFRI and is located in Salta City, Argentina.
Cascadero is required to make an initial option payment of CDN $50,000 upon signing and an additional option payment of CDN $100,000 on or before April 21, 2007.
The work commitments on the Santa Rosa Property are US $300,000 by January 31, 2007, US $300,000 by the April 21, 2008, US $400,000 by April 21, 2009 and US $1,000,000 by April 21, 2010.
The Santa Rosa Property consists of seven exploration concessions aggregating 16,631 hectares and is located in northwest Argentina in the Province of Salta.
The property is subject to a Back-in-Right in favour of Barrick Gold Corp. If Cascadero provides notice to AFRI to exercise its option to acquire a 51% interest in the property, AFRI is obligated to notify Barrick and to deliver all property and financial data. Upon a 90-day data review period and confirmation of expenditures, Barrick can exercise its Back-in-Right and acquire a 70% interest in the property. Upon exercise, Barrick will reimburse Cascadero 200% of its expenditures and has three (3) years to complete a bankable feasibility. Barrick ceases to have any interest in the property if it fails to exercise the Back-in-Right, or if it exercises the Back-in-Right but fails to provide a bankable feasibility study within the 3-year allotted time period.
The Option Agreement is subject to the approval of the TSX Venture Exchange.
Bill McWilliam
Chief Executive Officer
Cell: 604-999-0391
Office: 604-924-5504
Email: Bill@Cascadero.com
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
