VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 2, 2012) - Equinox Exploration Corp. (TSX VENTURE:EQX) (Equinox) is pleased to announce that Equinox and Binghampton Holdings, LLC (Binghampton) have signed a Mining Lease and Option to Purchase Agreement (Agreement) to acquire the Binghampton Property located in Yavapai County Arizona. Under the agreement, Binghampton has granted to Equinox the exclusive right to explore, develop and mine the Binghampton Property, Mining Claims and Mineral Exploration Permits (as described in the Agreement) and an exclusive and irrevocable option to purchase all Binghampton's right, title and interest in and to its Property, Mining Claims and Mineral Exploration Permits. The effect of the Agreement is to give Equinox development and mining rights to all minerals, ores, metals, tailings, concentrates and mineral products.
Although there have been no NI 43-101 compliant reports completed, based on historical data and geological observations, the property contains two known zones of volcanic massive sulphide mineralization. According to data from the Arizona Geological Survey as reported in DeWitt, (1995) historical production at the first zone was 157,247 short tons at an average grade of 3.10% copper and 0.256 ounces per ton silver. The second zone has an historical production of 1,413 short tons at an average grade of 9.95% copper, 0.25% zinc, and 1.582 ounces per ton silver. These values have not been independently verified by a Qualified Person.
The Agreement with Binghampton requires Equinox to make cash payments and to issue shares to Binghamptom over time as follows:
- upon signing the Agreement: US$175,000 and 1,000,000 common shares
- one year from regulatory approval: US$250,000 and 1,000,000 shares
- two years from regulatory approval: US$250,000 and 1,000,000 shares
- three years from regulatory approval: US$250,000 and 1,000,000 shares
- four years from regulatory approval; US$250,000 and 1,000,000 shares
If, at any time, Equinox files a NI43-101 compliant resource for the Binghamton Property (in any category - measured, indicated or inferred - pursuant to CIM standards), then it will pay Binghampton an additional US$250,000 and issue 2,500,000 shares.
For the duration of the Agreement and after Equinox exercises its option to purchase the Binghampton Property, if it does, Equinox will pay Binghampton a Net Smelter Returns Royalty (NSR Royalty) equal to a 3% aggregate of Net Smelter Returns as described in, and determined pursuant to, the Agreement. Equinox has the right to purchase the 3% NSR Royalty, in whole or in part, at the price of US$1,000,000 per 1%.
The Binghampton Property consists of a 100% interest in a tract of land that includes state permits, unpatented mining claims on federal land, and private land totaling 4331.8 acres. The Binghampton Property also includes a 40% interest in an additional 353.7 acre tract of land immediately adjacent, with an agreement in place to acquire the remaining 60% interest within 90 days. Under the terms of the agreement, Equinox can purchase the 60% interest for a $275,000 additional consideration.
Equinox believes that the property has exploration potential and intends to embark upon a geophysical program to identify targets for a diamond drilling program scheduled for Q3 2012.
President and COO, Victor Nielsen, commented: "Equinox is extremely excited with the prospects that the Binghampton project represents. The Binghampton Property has a rich history and is yet to be fully explored. It is an ideal complement to our current portfolio of properties known to host copper and other metals."
About Equinox Exploration Corp.
Equinox Exploration Corp. is a publicly traded corporation listed on the TSX-Venture Exchange (TSX VENTURE:EQX) and is engaged in mineral exploration and development in the United States and Chile. The major focus is on copper exploration properties in the Southwest United States where management has extensive experience and a proven track record of discovery. To find out more about Equinox visit its website at www.EquinoxExploration.com.
Stephen B. Butrenchuk, P.Geol., P Geo., Director of Equinox, is the Qualified Person as defined in National Instrument 43-101 who has reviewed and approved the technical content of this news release.
On behalf of the Board of Directors of Equinox Exploration Corp.
Victor Nielsen, President & COO
This news release includes certain statements that may be deemed "forward-looking statements". Forward-looking information includes, but is not limited to: statements with respect to the effect and estimated timeline of the drilling and assay results on the Company; the estimation of mineral reserves and mineral resources; the timing and amount of estimated future exploration; costs of exploration; capital expenditures; success of exploration activities; permitting time lines and permitting; government regulation of mining operations; potential future expansion of the PFNP; environmental risks; unanticipated reclamation expenses; and title disputes or claims. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". All statements in this release, other than statements of historical facts, including the likelihood of commercial mining and possible future financings are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include: unsuccessful exploration results; changes in metals prices; changes in the availability of funding for mineral exploration; unanticipated changes in key management personnel and general economic conditions. Mining is an inherently risky business. Accordingly the actual events may differ materially from those projected in the forward-looking statements. For more information on the Company and the risks and challenges of its business, investors should review the Company's annual filings that are available at www.sedar.com.
Equinox Exploration Corp.
Rick R. Cid
VP of Business Development
Equinox Exploration Corp.