PHOENIX, May 31, 2013 /PRNewswire/ -- KEY CAPITAL CORPORATION (OTCPink: KCPC) is pleased to advise that the Company has today made an offer of $350,000 to Arco Resources Corp ("Arco") to purchase the following three properties in Oaxaca, Mexico:
The Tres Hermanas consists of three separate mining claims and covers a silver-lead-zinc-bearing vein system that has historic underground workings on five levels along a 400-meter strike. Previous underground sampling showed local values >500 grams per ton (g/t) of silver. In addition, chip samples taken included values as high as 764.5 g/t of silver and 10.4% lead across 1.5 meters.
The La Luna property is immediately adjacent to the Tres Hermanas claim and offers a number of high value exploration targets. The combined land package of Tres Hermanas and La Luna is greater than 24,000 hectares.
The Predilecta Property consists of three separate mining claims comprising a total of 3181 hectares, located 68 kilometers south-southeast of Oaxaca City. The property contains multiple mesothermal gold-bearing quartz veins. This property has historic workings and is close to infrastructure and transportation. Previous underground sampling indicated 143 g/t Au over 0.45m. Underground sampling averaged 19.26 g/t Au along 95m with an average width of 0.57m.
Key Capital has offered a Purchase consideration of $350,000 plus a 0.5% NSR payable by:
- $50,000 non-refundable cash payment on 19 July 2013.
- $50,000 cash payment on 19 August 2013.
- $30,000 cash payment on 30 September 2013.
- $85,000 cash within 7 days from the date that any mining activity on any or all of the sale properties reaches a total one million ounces of silver equivalent production.
- $135,000 payable by the issue of 180,000 fully paid Ordinary shares in Key Capital Corporation. These shares will be issued on or before 7 October 2013 and will be subject to an 18 month hold from the date of issue.
- A 0.5% NSR interest in the future production of the sold properties.
Key Capital intends to partner the proposed acquisition with operational and financing interests with which the Company is already in discussion. These operational interests will be responsible for the ongoing planned exploration and development of the properties should the Key Capital Offer proceed. Subject to the ultimate feasibility of mining operations Key Capital will also arrange all project financing in exchange for an ongoing streaming interest.
ABOUT KEY CAPITAL: Key Capital is a resource funding business that provisions institutional project financing for mining operations through streaming or equity agreements. The Company is a Georgia corporation headquartered in Phoenix, Arizona.
For further information see www.keycapitalgroup.com or contact:
Key Capital Corporation
+1 (480) 745-2565
Statements about Key Capital Corporation's future expectations, including statements about its anticipated streaming business, the metal purchase agreements, any other equity or joint venture interests, and all other statements in this press release other than historical facts, are "forward-looking statements" within the meaning of Section 27a of the Securities Act of 1933, Section 21e of the Securities Exchange Act of 1934, and as that term is defined in the Private Securities Litigation Reform Act of 1995. Key Capital Corporation intends that such forward-looking statements be subject to the safe harbors created thereby. These future events may not occur as and when expected, if at all, and, together with Key Capital Corporation's business, are subject to various risks and uncertainties. Key Capital Corporation's actual results could differ materially from expected results as a result of a number of factors, including the uncertainties inherent in entering into any metal purchase or other financing agreements, the ability to fund metal purchase agreements, the evaluation of potential opportunities regarding natural resource mines, the level of corporate expenditures and monies available for purchasing natural resource interests, capital market conditions, and other factors. There are no guarantees that Key Capital Corporation can successfully negotiate any metal purchase or financing agreements or that any such agreements will be profitable, or that the natural resource interests acquired thereby will prove to be commercially successful. Key Capital Corporation undertakes no duty to update forward-looking statements. Key Capital Corporation disclaims any duty or obligation to update the information contained in this press release.
SOURCE Key Capital Corporation