St. Elias Mines Ltd. - Corporate Update
(via Thenewswire.ca)
Vancouver, B.C. July 17, 2013 St.
Elias Mines Ltd. (SLI-TSX-V) (the "Company") provides an
update with respect to the corporate affairs of the Company.
The principal business of St. Elias Mines Ltd.
is, and always has been, the acquisition, exploration, development and
sale of mineral properties. At
present, the Company owns properties located in two of the most prolific mining regions of the
world, Peru and British Columbia. All of St. Elias' properties are at
the exploration stage, and as such, require further exploration
programs in order to advance them.
"In spite of the recent depressed state of the
junior exploration sector, we think it is critical to endeavour to
achieve positive momentum. Some companies are
marking time, not moving forward. The choice becomes either do
nothing and wait in an attempt to ride out the storm, or forge ahead
despite the obstacles. We intend to forge ahead" states St. Elias' President and CEO, Lori
McClenahan.
Obtaining funding is the first of several steps
planned.
Financing
Moving forward, in 2013, St. Elias is actively pursuing a financing. The proceeds of the
financing will primarily be used for the Tesoro Gold Project in Peru
to complete an Environmental Impact Study, which will
encompass the installation of a small mill and
additional underground bulk sampling, and for
general working capital.
Cueva
Blanca
Property, Peru
As a result of local communities within the
Cueva Blanca Property expressing strong concerns about, and objections
to, mineral exploration activities at Cueva Blanca, the Company has
entered into an agreement to sell the Cueva Blanca Property. General
difficulties and social unrest/violence have been encountered in
northern Peru by other exploration companies, such as Candente
Coppersat's Canariaco project, which adjoins the Cueva Blanca to the
east, and at Golden Alliance's Rio Tabaconas project
St. Elias and its wholly-owned
subsidiary, Minera Santa Elisa S.A., have entered into an agreement
with Minera Elemento 79 S.A. ("Elemento") whereby St. Elias
has agreed to sell and Elemento has agreed to purchase a 100% interest
in the Cueva Blanca Property, subject to a 3% net smelter return
royalty (the "NSR"), in consideration of US$100,000. Under
the terms of the agreement, Elemento can purchase 83.33% of the NSR in
consideration of paying US$2,500,000 to St. Elias thereby reducing St.
Elias' portion of the NSR to 0.5%.
In 2002, St. Elias earned a 49% interest in the Cueva
Blanca Property from Inca Pacific Resources Inc. ("Inca
Pacific") in consideration of cash payments, issuance of shares
and exploration expenditures. St. Elias acquired the remaining 51%
interest in the Property from Inca Pacific in 2008 in consideration of
St. Elias paying Derecho de Vigencia
and non-production penalties for 2008 with respect to the Cueva Blanca
Property in the amount of US$27,603.
In 2010, St. Elias granted an
option to earn a 60% interest in the Cueva Blanca Property to Amarok
Resources Inc ("Amarok") which option Amarok subsequently
dropped and in 2011, St. Elias granted an option to earn a 60%
interest in the Cueva Blanca Property to Intigold Mines Ltd. Which
option, Intigold dropped in
2013.
For additional information on St. Elias and its
projects, please visit us at www.steliasmines.com or call
1-888-895-5522 (toll free US and Canada) or contact:
ST. ELIAS MINES LTD.
(signed "Lori McClenahan")
Lori McClenahan,
President
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
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