|Fri Dec 4, 2009|
Aurcana Closes Sale of Rosario Project
|Aurcana Corporation ("Aurcana" or the "Company") is pleased to report the Company and Silvermex Resources Ltd. ("Silvermex") subsequent to its announcements on May 25, 2009 and October 14, 2009, have completed the sale of the Rosario exploration and development project located in Sinaloa, State, Mexico to Silvermex through the sale of the shares in its wholly owned subsidiary Aurcana de Mexico. Silvermex paid CDN$224,996 and issued 1,250,000 shares.|
Upon commencement of commercial production or within 24 months from October 9, 2009 ("Effective Date"), Silvermex will issue an additional 1,000,000 common shares. 2,000,000 of the 2,250,000 common shares are subject to a voluntary escrow agreement and will be released at a rate of 25% every three months, commencing three months from the date of issuance. Upon the earlier of six months from the commencement of commercial production or 30 months from the Effective Date Silvermex will pay to Aurcana an aggregate of US$2,500,000 in five instalments of US$500,000 over a 36 month period. Aurcana at its election may take common shares in lieu of cash payments effective as of instalment three. Silvermex also assumed the payment obligations to Grupo Mexico due on August 7, 2009 (US$366,893 paid by Silvermex) and US$731,500 plus IVA due on February 7, 2010.
About Aurcana Corporation:
Aurcana's 92% owned La Negra silver-lead-zinc-copper mine in Queretaro State, Mexico, is working towards expanding operations to 1500 tonnes per day by spring of 2010. The reader should be cautioned the Company has not completed a feasibility study confirming the projected production capacity for La Negra and there is no certainty the Company's plans will be economically viable. The Shafter silver mine, with a NI 43-101 measured and indicated resource of 24.6 million ounces of silver and an inferred resource of 22.8 million ounces of silver (using a 4.0 ounce per ton cut off), is scheduled to start up production at 3.9 million ounces silver per year. Ron Nichols, P.Eng. a Director and Senior Vice President for Aurcana, and a Qualified Person as defined by National Instrument 43-101, supervised the preparation of the technical information in this release.
ON BEHALF OF THE BOARD OF DIRECTORS OF
"Lenic Rodriguez", President
For further information, visit the website at www.aurcana.com or contact:
Jack Barnes, Corporate Relations
Phone: (604) 331-9333
Toll Free: (866) 532-9333
Fax: (604) 633-9179
Caution Regarding Forward-Looking Statements -- This news release contains certain forward-looking statements, including statements regarding the business and anticipated financial performance of the Company. These statements are subject to a number of risks and uncertainties. Actual results may differ materially from results contemplated by the forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include unsuccessful exploration results, changes in metal prices, changes in the availability of funding for mineral exploration and development, unanticipated changes in key management personnel and general economic conditions. When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and should not place undue reliance on such forward-looking statements. The Company does not undertake to update any forwardlooking statements, oral or written, made by itself or on its behalf.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy and accuracy of this Release.
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