Chile files four environmental charges against Anglo American mine
The charges could carry a fine of nearly 17 billion pesos ($17.17 million).
VANCOUVER, BRITISH COLUMBIA–(Marketwire – Aug. 30, 2011) – Further to the press release dated July 27, 2011, Nortec Minerals Corp. (TSX VENTURE:NVT)(PINK SHEETS:NMNZF)(FRANKFURT:WMQ) (“Nortec” or the “Company”), is pleased to announce that it has signed an Option and Joint Venture Agreement (“OA”) with Otterburn Ventures Inc. (CSNX:OTB) (“Otterburn”). The OA gives Otterburn the option to earn up to an 80% interest in Nortec’s Läntinen Koillismaa project, a 100 % owned palladium-platinum–gold–copper-nickel property (“LK Project”), located in north central Finland.
The LK project comprises of the following target areas (exploration claims and exploration claim applications): Kaukua, Haukiaho, Haukiaho East, Lipeävaara, and Murtolampi Targets.
Under the terms of the OA, Otterburn can earn an 80% interest in the LK Project on payment of $10.5 million in cash and securities to Nortec and by expending $10 million in exploration work within 3 years of signing the Option Agreement (“OA”). The effective date (“Effective Date”) of the OA shall be the date which is the later of the date CNSX and TSX Venture Exchanges accepts the OA and the date of the OA.
Otterburn can earn an initial 49% interest in the LK Project by: a) making payments totalling $4.5 million in cash to Nortec; b) issuing the equivalent of $2 million in shares of Otterburn; and, c) spending $5 million on exploration within 24 months, including a firm commitment to spend a minimum $2 million in the first 12 months. The payments of cash and securities will be carried out in 4 (four) instalments over 18 months from the Effective Date (“Option 1”).
Otterburn can earn the remaining 31% interest by: a) making a payment of $3 million in cash to Nortec on or before the 3 year anniversary from the Effective Date; b) issuing the equivalent of $1 million in shares of Otterburn to Nortec; and, c) spending a further $5 million on exploration on the LK Project (“Option 2”).
The following table shows the schedule of the time-based payments and exploration expenditures.
| Dates | Cash | Shares | Direct Exploration Work Program |
| Option 1 (49% Interest in the Properties) | |||
| On or before the 5th day following the Effective Date | $900k | $500k | N/A |
| Sixth month after the Effective Date | $1.0 mil | $500k | N/A |
| On or before the 12th month after Effective Date | $1.25 mil | $500k | $2.0 mil |
| On or before the 18th month after Effective Date | $1.25 mil | $500k | N/A |
| On or before the 24th month after Effective Date | N/A | N/A | $3.0 mil |
| Option 2 (80% Interest in the Properties) | |||
| On or before the 36th month after Effective Date | $3.0 mil | $1.0 mil | $5.0 mil |
| TOTAL | $7.5 mil | $3.0 mil | $10.0 mil |
Otterburn will also issue 400,000 free trading shares from its treasury upon registration of the Haukiaho East claim applications by the Ministry of Employment and the Economy, Government of Finland. Nortec will retain a 2% Net Smelter Royalty on the Haukiaho and Haukiaho East claims. Otterburn has the right to purchase 1% for €1,000,000 (one million Euros).
Otterburn has made a $100,000 non-refundable payment to Nortec at the time of signing the binding Letter of Intent on July 21, 2011.
Commenting on the announcement, Mr. Mohan Vulimiri, Chairman and CEO of Nortec stated, “Further to what I mentioned in Nortec’s previous press release, we are very delighted in arriving at this agreement with Otterburn. We are very confident that the work programs supported by funding from Otterburn will lead the LK Project to large PGE-Nickel-Copper resources amenable to open-pit mining.”
About LK Project
The LK Project is located in north central Finland, 660km north of the capital Helsinki, 65km south of the Arctic Circle. The project is well serviced by power, water and roads affording all season access and development. The LK Project consists of the Kaukua, Lipeävaara, Murtolampi and Haukiaho Zones. Nortec carried out over 10,000 metres of diamond core drilling on the Kaukua Zone since 2007 and over 7,000 metres of historical diamond drilling was performed on the Haukiaho Zone since the 1960’s. Nortec has not carried out any drilling to date on the Haukiaho Zone. The LK project has a combined surface area of over 3,200 hectares and covers a palladium-platinum–gold–copper-nickel (“PGE+Au-Cu-Ni”) mineralized Marginal Series hosted within a sequence of mafic and ultramafic layered intrusions. The geology and the modes of mineralization are similar to Goldfields’ Suhanko Project (Arctic Platinum) situated 80 km to the West – Northwest. Goldfields reported total resources (measured, indicated and inferred categories) at Suhanko to be 152Mt @ 1.07g/t Pd; 0.25g/t Pt; 0.12g/t Au; 0.08% Ni and 0.19% Cu (North American Palladium News Release October 31, 2007).
Based on the current drilling information, the Kaukua mineralization is open down-dip and along strike to the west and south. Information to date shows that the LK Project can host several large – tonnage PGE+Au-Cu-Ni deposits, amenable to low cost open pit methods. Detailed drill results on the LK Project can be referred to in the Company’s previous press releases. Almost 90% of the 38 holes drilled by Nortec and 10 holes drilled by GTK returned significant mineralized intercepts
Mineral Resources for the Kaukua and Haukiaho deposits were modeled and estimated by Watts-Griffis-McQuat applying a contained metal value approach to define the lower cut-off (see Nortec News Release February 22, 2011). This approach was used due to the presence of several metals contributing to the value of the deposit. The Mineral Resource, containing palladium (“Pd”), platinum (“Pt”), gold (“Au”), copper (“Cu”), nickel (“Ni”) and cobalt (“Co”), is estimated using a cut-off of US$50/tonne and is tabulated below (Tables 1 and 2).
Table 1: Indicated Mineral Resource Estimate Kaukua Deposits
| Property | Classification | Tonnes T x 1000 |
Pd (ppm |
) | Pt (ppm |
) | Au (ppm |
) | PGE+Au (ppm |
) | Cu (% |
) | Ni (% |
) | Co (ppm |
) |
| Kaukua | Indicated | 2,887 | 0.65 | 0.21 | 0.07 | 0.93 | 0.17 | 0.12 | 65 |
Table 2: Inferred Mineral Resource Estimate Kaukua and Haukiaho Deposits*
| Property | Classification | Tonnes T x 1000 |
Pd (ppm |
) | Pt (ppm |
) | Au (ppm |
) | PGE+Au (ppm |
) | Cu (% |
) | Ni (% |
) | Co (ppm |
) |
| Kaukua | Inferred | 9,225 | 0.73 | 0.26 | 0.08 | 1.07 | 0.15 | 0.10 | 55 | |||||||
| Haukiaho | Inferred | 20,721 | 0.24 | 0.08 | 0.10 | 0.43 | 0.24 | 0.15 | 57 | |||||||
| * Note: Due to the uncertainty that may be attached to Inferred Mineral Resources, it cannot be assumed that all or any part of an Inferred Mineral Resource will be upgraded to an Indicated or Measured Mineral Resource as a result of continued exploration. The total contained ounces of palladium, platinum and gold (“PGE+Au”) and total tonnes of copper and nickel calculated from the Mineral Resource estimate in Table 1 and 2 is shown below in Tables 3 and 4. |
||||||||||||||||
Table 3: Indicated Mineral Resources – Kaukua Deposit (in ounces and tonnes)
| Property | Classification | Tonnes T x 1000 |
Pd Ounces |
Pt Ounces |
Au Ounces |
PGE+Au Ounces |
Cu tonnes |
Ni Tonnes |
| Kaukua | Indicated | 2,887 | 60,332 | 19,492 | 6,497 | 86,322 | 4,908 | 3,464 |
Table 4: Inferred Mineral Resources – Kaukua and Haukiaho Deposits (in ounces and tonnes)
| Property | Classification | Tonnes T x 1000 |
Pd Ounces |
Pt Ounces |
Au Ounces |
PGE+Au Ounces |
Cu tonnes |
Ni Tonnes |
| Kaukua + Haukiaho |
Inferred | 29,946 | 378,263 | 133,007 | 91,279 | 602,550 | 63,153 | 40,534 |
Mr. Turkka Rekola, M.Sc, Project Geologist – Finland and, Mr. Ian F. Laurent MSc.(EconGeol) MAIG RPGeo, President for Nortec, are the persons responsible for initiating and guiding of the work programs on the LK Project. Mr. Mohan R. Vulimiri, M.Sc., P.Geo. is the Qualified Person responsible for the contents of this press release.
About Nortec Minerals Corp.
Nortec is a mineral exploration and development company based in Vancouver, British Columbia. The Company has a 100% interest in the LK Palladium-Platinum-Gold-Copper-Nickel Project in north-central Finland.
Nortec also has a 100% interest in the Tammela Lithium Project in south-west Finland; an option to earn from Akkerman Exploration B.V., a 100% interest in the Seinäjoki Gold Property and Kaatiala Beryllium-Rare Earth Property in western Finland, a minimum 51% interest with an option to earn 100% interest in the TL Nickel-Copper-Cobalt Property in Northern Labrador, Canada; and, an option to acquire 51% interest in the Ganarin Gold-Silver Property, Ecuador.
On behalf of the Board of Directors, NORTEC MINERALS CORP.
Mohan R. Vulimiri, CEO and Chairman
This press release contains certain forward looking statements which involve known and unknown risks, delays and uncertainties not under the Company’s control which may cause actual results, performances or achievements of the Company to be materially different from the results, performances or expectations implied by these forward looking statements. This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States.
The TSX Venture Exchange has not reviewed and does not accept the responsibility for the adequacy or accuracy of this news release.
