Abacus Mining & Exploration Corp. (TSX.V:AME) (the "Company") is pleased to announce that the Company has met the terms and conditions of the Agreement signed between the Company and Teck Cominco Limited and Afton Operating Corporation ( collectively "Teck Cominco") to earn a 100% interest in Teck Cominco's interests in the Afton properties near Kamloops, British Columbia. The Afton properties consist of 289 mineral claims and 31 crown grants; covering approximately 7,000 hectares of land and are subject to various underlying royalties.
Due to the accelerated nature and success of the exploration program, Abacus has met all of their obligations of the Agreement two years in advance of the earn-in period. The Company has incurred total exploration expenditures of approximately CDN $3.1 million and has completed over 15,000 metres of drilling this year, with plans to start a second 15,000 metre drill program later in August.
After the Company has spent over $5.0 million, or delivers a pre-feasibility study, on any one deposit, Teck Cominco will have 120 days to elect to exercise their back-in rights to acquire up to a 65% interest in that deposit. To earn a 51% interest, Teck Cominco must complete a detailed feasibility study within 3 years on the deposit. Teck Cominco can then elect to earn an additional 14% interest (to a total of 65%) by advancing the deposit to a positive production decision and arranging project debt financing for a minimum of 60% of the projected capital costs.
The focus of the program in August will be to expand the #2 and #22 zones on the Rainbow claims and continue to test the DM, Audra, Crescent, and Coquihalla zones.
On Behalf of the Board,
ABACUS MINING AND EXPLORATION CORPORATION
The TSX Venture Exchange has not reviewed and does not accept the responsibility for the adequacy or accuracy of this news release.
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