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Dia Bras Exploration Inc., a Canadian listed mining company focused on precious and base metals in Peru and Mexico, announces that its Peruvian subsidiary, Sociedad Minera Corona S.A., has executed a Memorandum of Understanding with Volcan Compania Minera S.A.A.
Pursuant to the terms of the MOU, Corona has agreed to sell all its hydroelectric assets to Volcan for the price of USD$46,777,777.77, subject to, among other things, approval by Corona’s shareholders meeting. Such approval was granted at Corona’s shareholders meeting held yesterday, February 20th, 2012. Pursuant to the Purchase Agreement between the Company and Corona announced May 26th, 2011; Dia Bras will receive USD$24,510,000, representing its 81.7% equity stake in Corona, net of third party payments as a result of the sale of the hydroelectric asset. Daniel Tellechea commented about this transaction “Corona’s hydroelectric assets are a non core-asset for Dia Bras as they do not supply electricity to Yauricocha’s mining operations in Peru. The sale of this power asset will allow management to focus its time and the Company’s capital resources on continuing to develop and expand Yauricocha’s mine potential in Peru.” |
