Rio
Alto Mining Limited ("Rio Alto") (TSX VENTURE:RIO - News;
OTCQX:RIOAF)(BVLAC:RIO)(DBFrankfurt:MS2) is pleased to announce that it has
exercised its option and has acquired 100% of La Arena gold-copper project
("La Arena Project") located in north-central Peru upon payment of
the exercise price of US$49 million cash.
Rio
Alto entered into an option and earn-in agreement with IAMGOLD Quebec
Management Inc. in June 2009 which provided it with an option to acquire 100%
of La Arena S.A., the Peruvian company that owns La Arena Project, upon
payment of payment of US$47.6 million cash, subject to certain adjustments
and the completion of expenditure commitments.
Alex
Black, President and COO of Rio Alto, stated, "The completion of the
acquisition of the La Arena Project is another significant milestone for Rio
Alto. This brings to a conclusion a four year relationship with IAMGOLD
during which time our executive management team worked closely with IAMGOLD's
senior management team in negotiating the acquisition terms for La Arena
during a very difficult financial environment particularly in 2008 and
advancing the gold oxide project through feasibility and construction during
the past 18 months. We sincerely thank IAMGOLD for their support and
confidence during that time."
Construction
activities are nearing completion, mining equipment is arriving on site,
plant commissioning will occur in March and the La Arena gold oxide project
is on schedule to produce first gold in Q2, 2011.
Forward
Looking Statements
This
news release contains certain forward-looking information including
statements concerning the expected timing for commissioning of a gold
recovery plant and production of gold. All statements included herein, other
than statements of historical fact, are forward-looking information and such
information involves various risks and uncertainties. There can be no
assurance that such information will prove to be accurate, and actual results
and future events could differ materially from those anticipated in such
information. A description of assumptions used to develop such
forward-looking information and a description of risk factors that may cause
actual results to differ materially from forward-looking information can be
found in Rio Alto's disclosure documents on the SEDAR website at www.sedar.com. Rio Alto does not
undertake to update any forward-looking information except in accordance with
applicable securities laws.
To
learn more about Rio Alto Mining Limited, please visit: www.rioaltomining.com
or Rio Alto's SEDAR profile at www.sedar.com.
ON
BEHALF OF THE BOARD OF RIO ALTO MINING LIMITED
Alex
Black, President & COO
Neither
TSX Venture Exchange nor its Regulation Services Provider (as that term is
defined in the policies of the TSX Venture Exchange) accepts the
responsibility for the adequacy or accuracy of this release.
Contact:
Alex Black
Rio Alto Mining Limited
President & COO
+511 99279 4655
+511 625 9900 (FAX)
alexb@rioaltomining.com
Alejandra Gomez
Rio Alto Mining Limited
Investor Relations
604.628.1401
866.393.4493 (FAX)
alejandrag@rioaltomining.com
www.rioaltomining.com