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Alturas announces Debt Settlement
Toronto, March 17, 2010 – Alturas Minerals Corp. (the “Company”) (TSX-V, BVL: ALT) today announced that it has agreed with Equinox Minerals Ltd. (“Equinox”) to settle US$143,999 of the US$ 375,000 debt owed by the Company to Equinox in consideration for the issuance of securities of the Company. Equinox had loaned the Company a total of US$750,000 in cash in 2005. To date a total of US$375,000 has been repaid in cash to Equinox. The Company has negotiated with Equinox to settle US$ 143,999 of the remaining debt by issuing 1,536,842 common shares of the Corporation priced at $0.095 per share based on the Bank of Canada’s closing exchange rate on March 16, 2010 of 1.014. Equinox will receive securities in the Company at the same price as securities offered in the current private placement financing recently announced in a press release dated March 5, 2010 This debt settlement is subject to the approval of the TSX Venture Exchange.
Equinox currently owns 9.333 million common shares representing approximately 17.6% of the outstanding common shares of the Company immediately prior to the securities issued pursuant to the private placement announced on March 5, 2010 and 15.9% following the issuance of 5,672,182 common shares on the completion of the first tranche but prior to the completion of the debt settlement. Following the debt settlement, Equinox will hold 10,870,175 common shares representing 18.0% of the outstanding capital of the Company.
As Equinox holds more than 10% of the outstanding shares of the Company, this transaction would be considered a related party transaction. The debt settlement is exempt from the valuation and minority shareholder approval requirements of Multilateral Instrument 61-101 (“MI61-101”) by virtue of the exemptions contain in section 5.5(a) and 5.7(1) (a) of MI 61-101 in that the fair market value of the consideration for the securities of the Company to be issued to Equinox does not exceed 25% of its market capitalization. The balance of the Equinox debt, being US$231,001 does not bear interest and will come due January 1, 2011.
About Alturas Minerals Corp.
Alturas is a Canadian corporation, and is the parent of Alturas Minerals S.A. (“Alturas Peru”). Alturas Peru has been actively exploring various mineral projects in Peru since January 2004. Alturas’ properties include four drill-ready mineral exploration projects located in central and southern Peru, which includes the Chapi Chapi-Utupara Copper-Gold Project, the Sombrero Copper-Gold Project, the Ccaccapaqui Gold-Silver Project and the Huajoto Gold-Silver-Zinc Project. In addition, Alturas Peru has interests in four other exploration projects in Peru. Alturas’ exploration strategy is focused on the discovery of large epithermal gold mineralized deposits and copper-gold porphyry/skarn deposits in Peru and Chile. For further information, please visit the Company's website at www.alturasminerals.com
For further information please contact Alturas at:
Phone: + 51-1- 475-1700 (Peru)
Email:
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Alturas Minerals Corp.
Suite 3100, Scotia Plaza, 40 King St. W., Toronto, ON Canada M5H 3Y2
and
Manuel de Falla 297, Floor 5th, San Borja, Lima 41, Peru
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and specify “Alturas News” in the subject line
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Cautionary Language and Forward Looking Statements
This press release may contain “forward-looking statements”, which are subject to various risks and uncertainties that could cause actual results and future events to differ materially from those expressed or implied by such statements. Investors are cautioned that such statements are not guarantees of future performance and results. Risks and uncertainties about the Company’s business are more fully discussed in the Company’s disclosure documents filed from time to time with the Canadian securities authorities |
