VANCOUVER, April 17, 2012 /PRNewswire/ - Focus Ventures Ltd. (TSX-V: FCV.V) is pleased to announce that Compañía de Minas Buenaventura S.A.A. (NYSE: BVN, "Buenaventura") and Focus have signed a binding Letter of Intent whereby Buenaventura will acquire Focus' remaining 25% interest and royalty in the Minas Chanca project for US$2.5 million.
Additionally, Buenaventura will subscribe for 3.75 million common shares of Focus via a private placement at a price of CDN$0.40 per share, for a total purchase price of CDN$1.5 million. On completion of the private placement Buenaventura will own 9.35% of the outstanding common shares of Focus. The Agreement is subject to regulatory approvals.
David Cass, President of Focus Ventures comments: "We are very pleased to have reached this early agreement with Buenaventura for the sale of Minas Chanca. The transaction is a positive result of our strategy of acquiring advanced stage, historic mines and prospects and monetizing them through JV or sale. We welcome Buenaventura as a major shareholder in our Company and look forward to continuing our relationship with Peru's biggest gold and silver producer."
Buenaventura is Peru's largest publicly-traded precious metals company, with a market capitalization of approximately $10.5 billion. Buenaventura recently completed its investment commitments at Minas Chanca and vested its 75% interest, pursuant to its Option Agreement with Focus signed in December 2010. It is the major holder of mining rights in Peru with over 1 million hectares, and operates several gold, silver and base metal mines. Buenaventura owns a 43.65% stake in the Yanacocha deposit, Latin America's largest gold mine, and a 19.26% interest in the Cerro Verde copper mine. In 2011 the company produced 1.04Moz Au and 15.3Moz Ag from these operations.
The proceeds from the sale and private placement will be used to advance and expand the Company's portfolio of gold, silver and phosphate properties in Peru and Mexico, including the Santa Cruz silver project in Durango, where exploration by Focus continues to deliver encouraging results.
Focus recently expanded its property position at Santa Cruz with the acquisition of the El Reventon silver property where previous drilling intercepted 155.4 m @ 71.3 g/t Ag & 23m @ 287 g/t Ag. Focus now controls over 20km of mineralized trend within a new and underexplored silver district. Recent trench results from Focus's exploration at Santa Cruz include 8m @ 386 g/t Ag and 22m @ 378 g/t Ag (see press releases March 19 and April 10, 2012).
The scientific and technical information in this release was prepared under the supervision of Mr. David Cass, Focus's President, who is a member of the Association of Professional Engineers and Geoscientists of British Columbia, and a "Qualified Person" in accordance with NI 43-101.
About Focus Ventures
Focus Ventures is acquiring advanced, drill-ready projects in Peru and Mexico, where it maintains an experienced technical team of geologists and consultants. Focus's strategy is to identify and acquire former producing mines or untested gold and silver and base metal properties that show potential to become new mines. For further information, please call 604-688-5288 or visit our web site www.focusventuresltd.com.
ON BEHALF OF THE BOARD
David Cass, President
Shares Issued: 36.36-million
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
Some of the statements in this news release contain forward-looking information that involves inherent risk and uncertainty affecting the business of Focus Ventures Ltd. Actual results may differ materially from those currently anticipated in such statement.
SOURCE Focus Ventures Ltd.