22 Sep 2008 07:00
VANE Minerals Plc
Exclusive Heads of Agreement signed on Arizona Copper Property
VANE Minerals Plc ("VANE" or "the Company"; AIM: VML), is pleased to announce the signing of a "Heads of Agreement" and "Exclusivity" document to option the Yuma King Property in La Paz County, west-central Arizona (the "Property") from claim owner Merrill Palmer.
The Yuma King Mine, the primary prospect on the Property, has historic production of 8,709 tons of copper ore, producing 461,686 lbs of copper (Keith, 2003). The Property consists of 336 federal lode claims covering approximately 6,720 acres.
VANE believes the Property has the potential for further oxide copper production as well as the potential for discovery of a large porphyry copper-molybdenum system at depth. Standard due diligence of the claims is underway, subject to which a formal agreement is due to be signed by 28th October 2008. Thereafter, VANE intends to conduct mapping and geophysics and embark on a drilling program.
The terms of the agreement currently being contemplated provide for VANE to keep existing lease purchase agreements in good standing and pay all maintenance fees. A net smelter royalty of up to 2.5% is payable, subject to various buy out clauses.
Matthew Idiens, Director of Corporate Development commented:
"Due diligence is underway and we expect the full agreement signed within the specified timescale"
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Notes to Editors
VANE Minerals is an exploration company, with a cash flow, financed in part by production from the Silver/Gold Diablito Mine in Western Mexico. The Company has assembled a highly qualified and experienced management team with a proven track record in exploration and development. VANE now has projects in Mexico, Paraguay and the US, incorporating exposure to gold, silver, copper and uranium. The Company's principal objective is to utilise the funds generated from Diablito to identify and explore undervalued and under-explored projects, create value in those projects and realise that value through exploitation or disposal to third parties. For further information, please visit www.vaneminerals.com.
Clark Arnold, Ph.D Geology, who is Director of Geology for VANE Minerals and who meets the criteria of a qualified person under the AIM rule guidance for mining, oil and gas companies, has reviewed and approved the technical information contained within this announcement.
For further information, please contact:
| VANE Minerals Plc | +44 (0) 20 7667 6322 |
| Matthew Idiens | |
| Ambrian Partners Limited | +44 (0) 20 7634 4709 |
| Richard Brown | |
| Thomas Weisel Partners | +44 (0) 20 7877 4478 |
| Paul Newman | |
| Parkgreen Communications | +44 (0) 20 7933 8780 |
| Sue Scott |