INV Metals Provides Update On Rio Novo
TORONTO, ON – MAY 9, 2013 – INV Metals Inc. (“INV Metals” or “Company”) (TSX:INV) provides an update on the Company’s Rio Novo South property, located in Brazil.
The Company and Teck Resources Limited (“Teck”), indirectly through their Brazilian subsidiaries, have entered into an option agreement with a private Brazilian company (“Private Co.”) pertaining to the Rio Novo South property. Private Co. has the right to earn a 60% interest in Rio Novo South by funding $6 million in exploration expenditures by December 31, 2015.
Private Co. has committed to fund exploration expenditures of $2.5 million on the property’s copper and gold targets by December 31, 2014, including $1 million which must be expended by December 31, 2013. Within the $2.5 million of aggregate committed exploration expenditures, Private Co. must complete 6,000 metres of drilling, of which 5,200 metres must be drilled on copper targets previously identified by INV Metals and Teck.
If Private Co. fails to meet the committed expenditures by the dates noted above, the option will terminate and Private Co. will be obligated to pay an amount equal to one-half of the shortfall to each of INV Metals and Teck.
INV Metals continues to focus its efforts on the advanced stage Loma Larga gold project, where drilling is ongoing. INV Metals had approximately $23.8 million in cash (unaudited) as at March 31, 2013.
About INVTM Metals
INVTM Metals is an international mineral resource company focused on the acquisition, exploration and development of base and precious metal projects in Ecuador, Brazil and Namibia. Currently, INVTM Metals’ primary assets are: (1) its 100% interest in the Loma Larga (formerly Quimsacocha) gold property in Ecuador, (2) its 35% interest in the Kaoko property, located in Namibia and (3) its 50% interest in the Rio Novo southern claims, located in Brazil.
This press release contains certain forward-looking statements. Forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of INV Metals (including without limitation, the exercise of the option by Private Co.) to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. For a more detailed discussion of such risks and other factors, refer to INV Metals’ annual information form filed with Canadian securities regulators available on www.sedar.com.