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Durango Capital Corp. (TSX Venture: DGO) ("Durango" "the Company") is pleased to announce that it has signed an agreement (the "Agreement") with Teck Cominco Limited ("Teck Cominco") (TSX: TCK.A, TCK.B) to acquire a 100% interest in Teck Cominco's Big Bulk Property, subject only to certain back-in rights and a royalty reserved to Teck Cominco with respect to the Property. The Teck Cominco Big Bulk property is situated within the boundaries of the Durango Hastings project, located south of Stewart, British Columbia.
This Agreement completes Durango's goal of consolidating the entire Big Bulk Gold-Copper Porphyry System under its control and adds the Teck Cominco portion of the Big Bulk property to the 2008 drilling and exploration season, set to begin in early July.
The Teck Cominco property is extensively mineralized at surface and a number of bulk tonnage copper-gold targets were identified in work completed by Teck Cominco in 2002. Limited drill testing was completed in 2003 by Canadian Empire Exploration Corp. on a portion of the Teck Cominco Big Bulk property, the results of which have been reviewed by Durango geological staff and incorporated into the 2008 exploration plans.
- Under the terms of the Agreement, Teck Cominco has granted Durango the option to acquire a 100% interest in the Property (reserving a back-in right and a 2% NSR royalty to Teck Cominco) by incurring $1,000,000 in expenditures on the Property prior to December 31, 2010. The first $100,000 is a committed expenditure in 2008 and the remainder is optional with a total of $350,000 being required by the end of 2009 to maintain the option. Durango also will also issue 300,000 units to Teck Cominco with each unit consisting of one Durango share and one warrant, each warrant entitling Teck Cominco to purchase one Durango share at a price of $0.50 for a period of 24 months. The Agreement is subject to the approval of the TSX Venture Exchange.
- After Durango earns the 100% interest, Teck Cominco shall retain a one-time right to earn back a 60% interest in the Property which it may exercise anytime after Durango earns its interest and up to 90 days after the Durango delivers notice that it has expended an aggregate of $10 million on the Property.
- Upon election to exercise its Back-in Right Teck Cominco can earn the 60% interest by incurring expenditures equivalent to two times Durango's expenditures on the Property. If Teck Cominco earns back the 60% interest in the Property it shall extinguish the NSR.
Clinton Smyth (Pr. Sci. Nat., SACNASP) is Vice President, Exploration for Durango Capital Corp. and is the Qualified Person for the Company under National Instrument 43-101.
For more information please visit the Durango Capital Corp. website at www.durangocapitalcorp.com or contact Karl Kottmeier at 604 678 8941 or by email at karl@krgltd.com, or Kirk Gamley VP Corporate Development at 604 689 7422 or by email at kirk@contactfinancial.com.
ON BEHALF OF THE BOARD OF DIRECTORS OF
DURANGO CAPITAL CORP.
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Karl Kottmeier
President
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