The corporate reorganization the Company started in late 2014 is nearly complete. Two material changes occurred in 2015. The first occurred in late May 2015 when the Brazilian partner withdrew as a Member of the SESA LLC Operating Joint Venture. This resulted in the closing of the Plan of Arrangement that was signed on December 6th 2012 and Cascadero assumed a 100% interest in the JV.
The second material event occurred on December 21st 2015 when Cascadero and Regberg Ltd. signed an agreement that enabled Regberg to acquire a 25% beneficial interest in the SESA LLC Operating Joint Venture and committed Regberg to advancing US$850,000 to earn its 25% beneficial interest in the Joint Venture's Argentine property portfolio. Cascadero also granted to Regberg the right to acquire an additional 5% beneficial interest in the JV for an additional advance of US$175,000. No shares of Cascadero or any of its Argentine or Canadian Subsidiaries were issued or transferred. The Joint Venture manages the Argentine assets of Cascadero.
Cascadero currently has two wholly owned Argentine subsidiaries, Cascadero Minerals S.A. (CMSA) and Salta Geothermal S.A. (SGSA) Cascadero currently has one wholly owned Canadian subsidiary, Cascadero Minerals Corporation (CMC), which is in the process of Argentine registration. CMSA is the registrant of twelve (12) Argentine properties and it has three additional properties that are pending regulatory issues such as registration and or transfers. SGSA is the registrant of nine (9) Argentine properties, which constitute the contiguous 8,687 hectare (net) La Sarita Group west of and adjoining First Quantum's Taca Taca copper deposit.
Foreign companies must be registered with the Republic of Argentina, which takes time as the regulatory paperwork and the path of a full registration can take up to four months or more and considerable legal work. With federal registration, the foreign company receives a registration number, which enables it to have an Argentine bank account to receive money from Canada and other registered foreign entities. Cascadero sends US dollars by wire transfer, which are received by the Argentine Central Bank who checks the source of funds and if approved the funds are converted to Argentine pesos and then credited to the bank account of CMSA. US$ denominated bank accounts are not yet available.
Under Argentine law a foreign company cannot own or become the registrant of Argentine mineral tenures so it is necessary for the foreign parent to form an Argentine subsidiary, which has to file audited statements with the government and has to comply with Argentine corporate law and Argentine mining law. The board of directors of a foreign company subsidiary must have a majority of Argentine citizens as directors of the company. The officers and the management of the company can be any other national and/or Argentine dominant. Cascadero prefers to have a three person board of directors for its subsidiaries and some of these directors are officers of the companies. Cascadero maintains that a director of Cascadero should be on the board of the subsidiary and we prefer that this director also acts as chairman and president. The Company's subsidiaries have identical capital structures. At this time both CMSA and SGSA have 2,000 common shares authorized with Cascadero controlling 1980 common voting shares and 20 common voting shares are registered to Bill McWilliam. This enables the president to attend and to vote at the shareholder meetings. Both of CMSA and SGSA have new boards and new officers. Bill McWilliam represents Cascadero as a director, president and shareholder of each subsidiary. The 20 common shares are subject to an assignment agreement.
CASCADERO ASSET UPDATE
Cascadero Minerals S.A. (CMSA) is the registrant of twelve (12) Argentine properties, which consist of 27,300 hectares. The 12 mineral tenures are 100% owned by CMSA with no underlying agreements. Ten (10) of the properties are subject to a 1% NSR. The Taron Group consists of a contiguous group of six (6) properties that host the Taron cesium bearing polymetallic epithermal system aggregating 9,369 hectares. Taron is Cascadero's most advanced property and is the focus of current work. The Company intends to start surface work programs on its high-sulphidation gold and silver propsects in the near future.
PERMITTING:
Similar to most countries in the world, prior to conducting exploration on a property the Company is responsible to inform the community(s) that are interested in the property and may have to post assurance bonds with the provincial mining regulators where required. In some cases the company has to prepare and file a new and more comprehensive Environmental Impact Analysis (EIA) with full details of the work programs and their expected impact on the property. The Company is responsible for full disclosure to the communities in the neighborhood as consultation is required to achieve and to maintain the social license to begin and continue exploration. Some of the properties are on private land but most are on government registered land.
CSMA is the registrant of the following properties, which include four (4) high-sulphidation precious metal prospects. CMSA property taxes are approximately US$62,000 per year.
- Ochaqui Silver (3,440 hectares) is a bulk mineable silver - zinc showing
- Centauro (2,928 hectares) is a silver - cesium showing
- Tocomar is a geothermal prospect and is situated in the southern part of the Centauro mineral tenure
- Campo Viejo (3,000 hectares) is silver - lead - zinc - gold mineralized prospect
- Las Burras (2,700 hectares) is a copper - gold - moly discovery with four (4) mineralized drill holes from surface to ~130 metres down hole
- Incahuasi (2,700 hectares) adjoins Las Burras to the northwest with four (4) drill holes that indicate the presence of a large alteration system that may be related to an apophsys of the Las Burras magmatic system
- Santa Rosa I (2,866 hectares) consists of a high-grade gold vein and three areas that indicate the presence of sediment hosted gold systems in the southern part of the tenure and an area of disseminated gold-silver values in outcrop in the northern and eastern part of the tenure
- El Oculto (1,800 hectares) is bulk mineable silver - gold - zinc - antimony prospect (property registration is pending)
- Cerro Lari I (4,389) hectares and Cerro Lari II (7,500 hectares) adjoin each other and are located to the north of the Oculto silver - gold showing. The properties are prospective for gold - silver and uranium. (property transfers are pending)
Salta Geothermal S.A. (SGSA) is essentially an inactive holding company and is the registrant of five (5) 100% owned mineral tenures, two (2) 50% owned mineral tenures and two (2) 33.33% owned mineral tenures. The nine (9) mineral tenures consist of a contiguous claim block of 11,510 gross hectares (net 8,687 to SGSA) that adjoins First Quantum Mineral's Taca Taca copper deposit to the west. SGSA's interest in each property is subject to a 1% NSR applicable to SGSA's interest and there are no underlying agreements. SGSA pays approximately US$18,600 per year in provincial taxes.
Cascadero identified the Sierra Taca Taca area as a high-potential domain for copper porphyry and sediment hosted gold deposits in 2004. The Company acquired its first mineral tenure in 2004 and most recently in 2011.
- Sarita Sur (2,376 hectares) Gold - Uranium
- Sarita Este (830 hectares) Sarita Este adjoins Taca Taca to the west. Sampling, trenching and geochemistry have indicated the potential for two (2) buried base metal deposits. Trenches in a volcanic tuff revealed narrow up to one (1) metre thick vertical high-sulphidation alteration zones that that assayed up to 160 g/tn gold (5.1 oz Au). The mineralization in both cases is in close proximity to Taca Taca and may represent apophyses of the Taca Taca porphyry system. This is a high-priority drill target. The property requires a property-scale IP geophysical program.
- La Sarita Sur (600 hectares) Gold - Uranium
- La Sarita I (1,491 hectares) Gold
- La Sarita II (1,400 hectares) Porphyry setting
- Francisco I (1,313 gross hectares) (net 657 to SGSA) This tenure is jointly owned 50% by First Quantum Minerals and 50% by SGSA.
- Francisco II (1,000 hectares) (net 500 to SGSA) This tenure is jointly owned 50% by First Quantum Minerals and 50% by SGSA. These tenures adjoin Taca Taca to the immediate west. Cascadero believes that in addition to the mineral potential of the tenures, they may provide critical space for the infrastructure required to develop large-scale mineral deposits. The area is constrained to the east by the Salar de Arizaro, which is a water preserve. The Salar is unlikely to be available for tailings storage or waste dumps. Taca Taca is constricted on the west by Sierra Taca Taca that rises from 3,500 metres to 4,700 metres in the space of a few kms to the west.
- Desierto I (1,500 hectares) (net 333 hectares to SGSA) This tenure has three (3) parties that each own one
- share of the property.
- Desierto II (1,500 hectares) (net 500 hectares net to SGSA) This tenure has three (3) parties that each own one (1) share of the property. SGSA owns one share of each of the Desierto I and II. The Desierto tenures are prospective for silver in low-sulphidation quartz veins and buried base metal deposits.
Six (6) of the tenures, 2, 3, 6, 7, 8, and 9 are contiguous and directly adjoin Taca Taca to the north, south and west. Sarita I, Sarita Este, Sarita Sur, and Desierto I and II are believed to have discovery potential. Francisco I has several 2-metre intervals of gold mineralization in one drillhole on the east side of the claim block. Francisco II has copper- gold-moly in a few drill holes to the west of the Taca Taca Francisco II claim boundary as the Taca Taca mineralization crosses the boundary in this location. The six tenures are located in a Graben style setting, which is relatively flat area that slopes to the north and south.
The content of this news release has been reviewed and approved by Dave Trueman P.Geo., who is the Qualified Person for the Company.
Bill McWilliam
CEO
Cascadero Copper Corporation
Cell = 604.999.0391
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