Ronald W. Thiessen, President and CEO of Rockwell Ventures Inc. is pleased to announce that Minera Ricardo Resources Inc. S.A., a wholly owned subsidiary of Rockwell, has signed a Letter of Understanding with Rio Tinto Mining and Exploration Ltd. (“Rio Tinto”), whereby Rio Tinto can acquire a 100% interest in a majority of the claims (about 16,400 hectares) which make up the Ricardo property in the Calama Mining District, Chile.
To obtain its interest under the Letter of Understanding, Rio Tinto must make annual option payments over a four year period, totaling US$6 million, as well as paying all property taxes and property maintenance costs for the duration of the agreement. To keep the option in good standing, Rio Tinto must also spend US$4 million on exploration on the property during the four years. The first year’s expenditure of US$250,000 and 2000 metres of drilling is a commitment. Rockwell will retain a 1% net smelter royalty (“NSR”), with Rio Tinto also having the option to purchase the first 0.5% of the NSR for US$5 million and the remaining 0.5% of the NSR for US$7 million.
The Ricardo property is a porphyry copper prospect located near Calama, Chile. It is situated on the West Fissure Fault, a structural trend that hosts a number of significant copper deposits including Chuquicamata, one of the world’s largest copper mines, owned by the Chilean state mining company CODELCO.
Rockwell President and CEO Ronald Thiessen said “We are pleased to have completed this agreement with Rio Tinto, one of the world’s largest and most successful mining companies, which will provide funding for ongoing exploration at Ricardo.”
For further details on Rockwell, please visit the Company’s website at www.rockwellventures.com or contact Investor Services at (604) 684-6365 or within North America at 1-800-667-2114.
ON BEHALF OF THE BOARD OF DIRECTORS
Ronald W. Thiessen
President and CEO