Pulacayo Project Feasibility Study - Apogee Silver

Pulacayo 1 000 t/d Phase I Feasibility Study - NI 43-101 Technical Report
090644-3-0000-20-IFI-100
COMIBOL the equivalent of 2.5% of the Net Smelter Return (NSR) and 1.5% of
the Net Smelter Return (NSR) to the Pulacayo Cooperative.
The First Stage of Exploration implies the investment of USD 500,000 or at least
a minimum of USD 300,000 during the sixth to eighth month.
As defined on the clause 21 of the Joint Venture Agreement a third party could be
integrated to the Joint Venture under permission of COMIBOL’s Board.
ASC Bolivia LDC (Sucursal Bolivia)/Apogee Minerals Bolivia S.A. Option Agreement to
be Part of a “Joint Venture Agreement”
Apogee Minerals Bolivia S.A. and ASC BOLIVIA LDC (Sucursal Bolivia) have
executed an Option Agreement to be Part of a “Joint Venture Agreement”
(Contrato de Opción para la Incorporación a un Contrato de Riesgo Compartido)
according to the “Testimonio” No. 68/2006 dated 03/08/2006 granted by Public
Notary from La Paz No. 038 (Daysi Benito Pozzo). The contract establishes the
conditions that Apogee Minerals Bolivia S.A. must fulfill to vest 60% participation
on the Pulacayo Cooperative/ASC Bolivia LDC Joint Venture Agreement and also
to have 60% participation on the Paca Group of mining properties through a Joint
Venture Agreement.
The inclusion of Apogee Minerals Bolivia S.A. to the Pulacayo Cooperative/ASC
Bolivia LDC Joint Venture Agreement was authorized by the Board of COMIBOL
according to the Board Resolution dated 06 November 2005.
The inclusion of Apogee Minerals Bolivia S.A. to the Pulacayo Cooperative/ASC
Bolivia LDC Joint Venture Agreement was also approved by the Board of the
Cooperative according to the letter dated 17 August 2005.
The agreement includes the Pulacayo and the Paca Group of mining
concessions. The Paca Group of Mining Concessions is property or is under the
control of ASC Bolivia LDC.
On 23 October 2007 and amendment to the Option Agreement to be Part of a
“Joint Venture Agreement” was executed, extending the term of the mentioned
agreement until 30 July 2009, and in consequence extending the deadline to
prepare a Feasibility Study until such date.
On 19 May 2009, COMIBOL has approved Apogee’s request to extend the
deadline to deliver a Feasibility Study until 30 November 2009. In consequence
the deadline mentioned on previous paragraph was extended to 30 November
2009.
If the Feasibility Study establishes the existence of a critical mass of resources,
ASC will have the chance to dilute Apogee’s participation from 60% to 40% if
ASC in a term of 90 days notifies to Apogee that will develop Pulacayo to
production.
However, in order to avoid the disclosure of the commitments between Apogee
Minerals Bolivia and ASC Bolivia LDC on regard of the incorporation of Apogee
Minerals Bolivia S.A. to the Joint Venture Agreement, a simply separate
TWP Sudamérica S.A. Av. Encalada 1257 Of. 801, Santiago de Surco Lima 33, Perú (51-1) 4377473
Page 24