Mariana Resources Regulatory News (MARL)

19 May 2006 07:00

This announcement and the information contained herein is restricted and is notfor publication, release or distribution in whole or in part in the Republic ofSouth Africa, Canada, Australia, the Republic of Ireland, Japan or the UnitedStates of America.19 May 2006 Mariana Resources Limited Admission to trading on AIM after ‚£3.63m placing * Exploration of highly prospective gold and copper projects in South America * JVs with IAMGOLD and Anglo American Mariana Resources Limited ("Mariana" or "the Company"; AIM: MARL), a gold andcopper exploration company operating in South America, today announces thecommencement of trading on AIM after a placing raised ‚£3.63m (before expenses).The Company has issued 18.15m Placing Shares, representing 51.3% of theenlarged issued share capital of the Company, at 20p per Ordinary Share. RFCCorporate Finance Ltd is acting as the Company's Nominated Adviser and HaywoodSecurities (UK) Ltd is acting as Broker to the Company with Haywood SecuritiesInc. as Placing Agent.The funds raised by the Placing will be used principally to conduct drillingprogrammes on several of its projects in Ecuador, Argentina and Chile. Capitalraising by Mariana to date has included two seed capital raisings of ‚£0.75m intotal, which has been used to secure titles and interests and fund preliminaryexploration.The Company's strategy is to identify and acquire under-explored areas withpotential for high grade epithermal/skarn gold mineralization in the highlyprospective mineral belts of Ecuador, Chile and Argentina. A portfolio of 16mainly low-sulphidation gold targets was selected by geologist and ManagingDirector John Sutcliffe and his team following an intensive 18 month programmeof project generation work. In Ecuador, eight gold projects have been acquired,including two epithermal gold projects held under a joint venture with IAMGOLDCorporation ("IAMGOLD"). In Argentina, two epithermal gold projects, located inthe highly prospective Santa Cruz gold province, were acquired under an outlinejoint venture also with IAMGOLD. In Chile, the terms of a proposed jointventure have been agreed with Empresa Minera de Mantos Blancos SA ("EMMB"), asubsidiary of the Anglo American Group, covering four properties, one of whichhas significant porphyry copper potential. The Directors of Mariana considerpreliminary exploration results from several of projects in the portfolio to bemost encouraging.Commenting today, John Horsburgh, Chairman of Mariana Resources, said:"Following today's successful fundraising, our main objective is to rapidlymove forward our drilling programme focusing on Guanazan, Norcay and SierraBlanca, our JVs with IAMGOLD, and Exploradora, our JV with Anglo American. Theintroduction to AIM will allow Mariana to widen its shareholder base as weprogress to the next exploration stage at our core projects in South America." www.marianaresources.com For more information:Mariana Resources Limited RFC Corporate Finance Limited (Nomad) John Horsburgh +61 2 9437 4588 Rob Adamson +61 2 9250 0041 (Chairman) Glen Parsons +61 2 9250 0036 John Sutcliffe +5932 298 6464 (MD) Conduit PR Limited Haywood Securities (UK) Limited (Public Relations) (Broker) Angus Prentice +44 (0)20 7429 6603 Jeremy Wrathall +44 (0)20 7031 8005 +44 (0)7974 982 512 Laurence Read +44 (0)20 7429 6605 Simon Catt +44 (0)20 7031 8003 +44 (0)7979 955 923 James Hannon +44 (0)20 7031 8015NOTES TO EDITORSMARIANA RESOURCES LIMITEDMariana Exploration Ltd was established in 1997 to acquire mineral explorationand development projects in South America with emphasis on gold. Since 2004,Mariana Exploration's efforts have focussed on selected prospective mineralbelts of Ecuador, Chile and Argentina. A quality portfolio has been assembledbacked by an experienced team of minefinders. In January 2006, the Company(Mariana Resources Limited) was incorporated to act as the holding company ofthe Group and on 13 March 2006 acquired all of the then issued ordinary shares,and outstanding options, of Mariana Exploration, and issued an equivalentnumber of shares and options to the shareholders and optionholders of MarianaExploration, therefore making Mariana Exploration a wholly-owned subsidiary ofMariana.Mariana Resources is led by an experienced team of minefinders and companybuilders with over 150 years of combined experience. The track record is one ofresource discovery, through to successful mine development. The Company'sexperience and networks in South America are extensive. Moreover, Mariana'smanagement team have a proven record in successful junior company management.Mariana's portfolio offers investors an opportunity to participate in anexploration programme with a high component of drill testing, both at an earlystage and as targets are developed. The Directors believe shareholders ofMariana will be rewarded as the Company grows through successful evaluation ofthese targets and on to resource definition.According to an Independent Geologist's Report prepared by Wardell ArmstrongInternational, dated 17 February 2006, "Mariana Exploration has acquired aprospective portfolio of properties demonstrating good potential for resourcesdiscoveries and worthy of further exploration and drilling."THE PROJECTSMariana was formed to harness the founders' extensive experience in mineralexploration and resource development to acquire a portfolio of projects withhigh resource potential. Emphasis has been placed on low-sulphidationepithermal gold-silver targets (high grade, small footprint, low cost mining).The Mariana team is dynamic and discovery-driven, as reflected in the currentportfolio. Several key properties are at or close to the drill-ready stage.Other properties in the portfolio have the scope to be quickly advanced to thedrilling stage.Funds raised in the placing will be used to develop Mariana's portfolio of goldand copper-gold projects. The prospects range from promising advancedexploration projects with mineralised drill intersections, through toprospective grassroots properties. The Directors of Mariana believe theportfolio has excellent potential for the discovery of various styles of goldand copper-gold deposits.Mariana's projects are briefly summarised as follows:Norcay (S Ecuador) - IAMGOLD Joint Venture project with low-sulphidationepithermal gold mineralisation, with several previous drill intersections whichare open at depth and new untested target areas identified outside the drilledarea elsewhere on the property. High gold grades reported by small-scaleartisan gold miners. Guanazan (S Ecuador) - IAMGOLD Joint Venture project with low-sulphidationepithermal gold mineralisation with highly prospective drill-ready targets andscope to define others. Previous artisanal small gold mining activityimmediately adjacent to the property.La Victoria (S Ecuador) - 100% Mariana, comprising a 5km-long ridge of skarnlimestone which is the source of abundant coarse gold in adjacent drainages. Ahighly rated district-scale untested drill target.Loma Alta (S Ecuador) - 100% Mariana, comprising untested stratiform goldmineralisation hosted by volcaniclastics, high grade potential demonstratedfrom Mariana channel sampling and small scale mining, untested by drilling.Sierra Blanca (Argentina) - IAMGOLD Joint Venture project with 25 km ofuntested epithermal veins, located in the highly prospective Santa Cruz goldprovince, with a number of high priority drill-ready targets.Loma de la Virgen (S Ecuador) - 100% Mariana, untested low-sulphidationepithermal gold project that warrants drilling following geological mapping andgeochemistry to define drill targets. Assays of up to 33 g/t gold from dumpmaterial from old workings.Exploradora (Chile) - Letter Agreement signed outlining the proposed jointventure with Anglo American subsidiary. Porphyry copper potential in coveredareas immediately adjacent to a known CODELCO copper porphyry deposit.Additional peripheral silver-gold vein potential. Target definition leading toearly drilling.Other under explored gold projects in S Ecuador and Argentina which theDirectors believe have good potential, including a further epithermal veintarget in Argentina, (Caƒ±adon largo) and a large drilled porphyry/epithermalcopper-gold project in Ecuador (Fierro Urcu) with significant drillintersections and untested targets.THE JOINT VENTURESIAMGOLD Corporation, (Ecuador) covering the Guanasan and Norcay projects.Mariana can earn 70% in the properties by spending US$2.5M in 4 years, withUS$150,000 in the first 18 months. Once Mariana has earned 70%, IAMGOLD canbuy-back to 70% by making payment of US$7.5M. Mariana may transfer a further10% to IAMGOLD in return for IAMGOLD sole funding a Bankable Feasibility Study.IAMGOLD Corporation, (Argentina). Mariana can earn 70% in the properties byspending US$2M in 4 years with US$250,000 in the first 18 months. Once Marianahas earned 70%, IAMGOLD can buy-back to 51% by refunding Mariana's expenditureand sole funding a bankable feasibility study. IAMGOLD can also buy-back to 70%by repaying Mariana US$4M bringing the total buy-back to US$6M. Mariana willrepay IAMGOLD its share of expenditure from 80% of mine cash flow.EMPRESA MINERA de MANTOS BLANCOS S.A. (ANGLO AMERICAN, Chile) Terms of aproposed joint venture have been agreed with ANGLO AMERICAN, (Chile) throughtheir wholly owned subsidiary Empresa Minera de Mantos Blancos S.A. ("EMMB"),covering 4 properties in northern Chile. Mariana can earn 70% in the propertiesby spending US$3.0M in 5 years, with US$300,000 in the first 12 months. OnceMariana has earned 70%, EMMB can buy-back to 70% by making payment of US$9.0Mto MarianaTHE REGIONECUADOREcuador is the smallest Andean country (13.5M population) with an oil andagriculture based economy. Attractions for Mariana in selecting Ecuador as amain area of operations include its high prospectivity, history of Inca andColonial gold mining, emerging modern mining industry, and the presence ofseveral multi-million ounce gold deposits (Quimsacocha - high sulphidationepithermal gold, Gaby - gold porphyry, Nambija - gold skarn and Portovelo -low-sulphidation epithermal gold). Moreover, Ecuador has a mining friendlyGovernment with a new mining law enacted in 2001.Ecuador has a number of projects at feasibility or at resource drilling stage:Rio Blanco (IMC) with a resource of 2.1Mt @ 8.9 g/t Au, 68 g/t Ag, Quimsacocha(IAMGOLD), a major discovery with a 2.8Moz gold resource of 22.5Mt @ 3.9g/t Auand Mirador (Corriente Resources Inc), a copper-gold porphyry with a resourceof 320Mt @ 0.62% Cu 0.2g/t Au.ARGENTINAOver the last ten years, the Santa Cruz gold province in Patagonia has emergedas a significant gold producer and key exploration destination for a number ofcompanies following the development of the Cerro Vanguardia gold mine by AngloGold in 1998. Mariana has gained access to some drill-ready low-sulphidationgold prospects in this area by way of a joint venture with IAMGOLD Argentina.The Joint Venture covers the Sierra Blanca and Ca...ˆadon Largo concessions. Theprospects which all have good access, were discovered by IAMGOLD using ASTERsatellite imagery and are untested.CHILEChile forms an important part of Mariana's strategic plan. The countryconsistently ranks as a top global exploration/mining destination and hostssome of the world's most important copper and copper-gold mines in the Andescordillera. Moreover, the discovery of the 4Moz El Peƒ±on low-sulphidationepithermal gold deposit by Meridian in the mid-90s highlights the greatpotential of the Palaeocene volcanic belt of Chile.Mariana has negotiated the terms of a farm-in joint venture with Empresa Minerade Mantos Blancos ("EMMB"), part of the American group of companies and iscurrently proceeding to document the farm-in joint venture in a form that canbe registered in Chile. EMMB is a major copper producer in Chile with operatingthe Collahuasi, Disputada, El Soldado, Los Bronces, Mantos Blancos andMantoverde copper mines.DIRECTORSJohn Horsburgh - Executive Director, ChairmanJohn Horsburgh, a graduate of the Royal School of Mines, is a geologist withmore than 30 years experience in exploration, project development and companymanagement. He was a co-founder of Solomon Pacific Resources NL which achievedsuccess with the discovery and development of the Brocks Creek gold mine in theNorthern Territory in Australia. As Executive Chairman he was involved in theacquisition, exploration and financing of the project. Prior to this, he wasExploration Manager for SE Australia with Getty Oil Development (mineralsdivision). Before Getty, John gained extensive exploration experience withBilliton and the RTZ Group in Australia, South America and Europe. He is adirector and a co-founder of Cullen Resources Ltd.John Sutcliffe - Executive Director, Managing DirectorJohn Sutcliffe graduated from the Royal School of Mines and has 38 yearsexperience in Latin America, Spain and the Middle East. John, a South Americaspecialist, has managed successful exploration for Anglo American,Shell-Billiton, International Minerals Corp, Antofagasta Holdings and GreenwichResources. He led teams which discovered the Rio Narcea gold belt, now inproduction, the Rio Blanco bonanza gold-silver deposit in Ecuador, (feasibilitystage), the Pallancata bonanza silver-gold deposit in Peru (feasibility study)and the Dos Amigo porphyry copper deposit in Chile (producing mine). He hasbeen involved in significant copper and gold discoveries in the Middle East andCentral America. As initiator and manager of the Billiton office in Chile, hewas responsible for initially identifying the potential of the Collahuasicopper district to the company. He is a fluent Spanish speaker and is based inQuito, Ecuador.Grahame Hamilton -Executive DirectorGrahame Hamilton, a graduate of the Universities of New South Wales and JamesCook, has over 30 years experience in exploration, corporate and projectmanagement. He has wide-ranging expertise in project evaluation. Between 1994and 1996, he managed the Brocks Creek exploration, environmental impactstatement, feasibility study, mine development and construction for SolomonPacific Resources NL, of which he was a co-founder. Before Solomon, Grahamemanaged the minerals division of Getty Oil Development in Queensland,Australia. He is a director and co-founder of Cullen Resources Ltd.Roger Thomson - Non-Executive DirectorRoger Thomson, a graduate of the Royal School of Mines, is a geologist withmore than 30 years experience in mineral exploration, mining geology andmanagement in Australia, South America and Southeast Asia. He has held thepositions of General Manager Exploration with Delta Gold Ltd and Sons of GwaliaLtd and has been responsible for, or closely associated with, making economicdiscoveries of gold and tantalum in Australia. Roger successfully managed theprogramme that led to the discovery of the multi-million ounce Sunrise golddeposit near Laverton in Western Australia. He is a director of Image ResourcesNL and Meteoric Resources NL.The Company accepts responsibility for the information contained in thisannouncement. To the best of the knowledge and belief of the Company (which hastaken all reasonable care to ensure that such is the case) the informationcontained in this announcement is in accordance with the facts and does notomit anything likely to affect the import of such information.RFC Corporate Finance Limited ("RFC") is the Company's nominated adviser forthe purpose of the AIM Rules. RFC's responsibilities as the Company's nominatedadviser under the AIM Rules are owed solely to the London Stock Exchange plcand are not owed to the Company or to any Director or any other person. RFC isacting for the Company and no one else and will not be responsible to any otherperson for providing the protections afforded to customers of RFC nor forproviding advice in relation to the arrangements described in thisannouncement.Haywood Securities (UK) Ltd ("Haywood UK") is the Company's broker in the UKand is authorised and regulated by the Financial Services Authority. Haywood UKis acting for the Company and no one else in connection with the Placing. Itwill not regard any other person as its customer nor be responsible to anyother person for providing protections afforded to the clients of Haywood UKnor for providing advice to any other person in connection with thearrangements described in this announcement.Haywood Securities Inc. ("HSI") is acting as the Company's placing agent inCanada and certain jurisdictions, outside the UK and Australia, in connectionwith the Placing. It will not regard any other person as its customer nor beresponsible to any other person for providing protections afforded to theclients of HSI nor for providing advice to any other person in connection withthe arrangements described in this announcement.Neither RFC, Haywood UK nor HSI is not making any representation or warranty,express or implied, as to the contents of this announcement. Neither RFC,Haywood UK nor HSI accepts any liability whatsoever for the accuracy of anyinformation or opinions expressed in this announcement or for the omission ofany information.Forward-Looking Statements. Information contained in this announcement mayinclude 'forward-looking statements'. All statements other than statements ofhistorical facts included herein, including, without limitation, thoseregarding the Company's financial position, business strategy, plans andobjectives of management for future operations (including development plans andobjectives relating to the Company's business) are forward-looking statements.Such forward-looking statements are based on a number of assumptions regardingthe Company's present and future business strategies and the environment inwhich the Company expects to operate in future. Actual results may varymaterially from the results anticipated by these forward-looking statements asa result of a variety of factors, including those discussed under the sectionentitled "Risk Factors" in Part 2 of the Admission Document. Theseforward-looking statements speak only as to the date of this announcement andcannot be relied upon as a guide to future performance. The Company expresslydisclaims any obligation or undertaking to disseminate any updates or revisionsto any forward-looking statements contained in this announcement to reflect anychanges in its expectations with regard thereto or any change in events,conditions or circumstances on which any statement is based.ENDMARIANA RESOURCES LTD