Document:

amendment8k.htm

FIRST AMENDMENT TO AND RESTATEMENT OF MINERAL PROPERTY ACQUISITION AGREEMENT

 

 

This First Amendment to and Restatement of Mineral Property Acquisition Agreement (the “Amendment”) is dated and is effective February 22, 2010 (the “Effective Date”), and is by and between Pacific Copper Chile Limitada, a Chilean limited liability company, with an international address of 3040 N. Campbell Ave. Suite
110, Tucson, Arizona USA 85719 (“Pacific Chile”), Pacific Copper Corp., a Delaware corporation, with legal address of 3040 N. Campbell Ave. Suite 110, Tucson, Arizona USA 85719 (“Pacific Copper”), and Sociedad Gareste Limitada, a Chilean limited liability company, whose legal address is 208 Van Buren, Copiapo, Chile (“Gareste”).

 

 

RECITALS

 

	
A.  
	
Pacific Chile and Gareste entered into a Mineral Property Acquisition Agreement dated June 11, 2009 (the “MPAA”) whereby Pacific Chile agreed to purchase the San Enrique copper property (the “Property”) in Atacama Region III Chile from Gareste in return for the delivery of shares of Pacific Copper and a net smelter return royalty.

	
B.  
	
The original date for closing under the MPAA was to have been July 31, 2009.

	
C.  
	
The parties have not completed or closed the purchase under the MPAA, but have by previous agreement extended the closing date to June 30, 2010.

	
D.  
	
Since the execution of the MPAA, Gareste has obtained additional mineral concessions and filed applications for or overstaked other concessions adjacent to the Property, which the parties have agreed to include within the purchase contemplated under the MPAA.

	
E.  
	
By this Agreement, Pacific Chile and Gareste desire to add Pacific Copper as a party to this transaction, and clarify the terms of the MPAA and their relationships relative to the Property.

 

FOR GOOD AND VALUABLE CONSIDERATION, THE SUFFICIENCY OF WHICH IS HEREBY AFFIRMED AND ACKNOWLEDGED, Pacific Chile, Pacific Copper and Gareste hereby agree to amend the MPAA as follows:

 

AGREEMENT AND AMENDMENT

 

	
1.  
	
Pacific Chile and Gareste hereby confirm and agree that Pacific Copper be made a party to the MPAA, and Pacific Copper hereby agrees to and with Pacific Chile jointly accepts the responsibilities and obligations of Pacific Chile under the MPAA.

	
2.  
	
The parties hereby agree that the mineral exploration concessions described in Exhibit A attached hereto be included in and constitute the Property for purposes of the MPAA.

	
3.  
	
The parties agree to specifically extend the Closing Date under Clause 6.1 of the MPAA to June 30, 2010.

	
4.  
	
The parties agree that the consideration of 7 million shares of Pacific Copper due at Closing to Gareste shall be reserved or placed in escrow, pending satisfaction or waiver of the closing conditions under articles 5 and 6 of the MPAA, and further satisfaction of the conditions that would otherwise give rise to the Rescission Right set forth in clause
5 below.

	
5.  
	
At Closing Gareste shall deliver titles to the Property to Pacific Chile as described in Article 6.3 of the MPAA. However, the parties further agree to grant and extend to Gareste a specific right of rescission (“Rescission Right”) of the transaction, obligating Pacific Chile and Pacific Copper to return and convey the mineral titles back to
Gareste under limited circumstances. Such Rescission Right shall only become effective, and Gareste shall have the option to elect to exercise the Rescission Right, if (a) Pacific Copper does not raise and add to its treasury the net sum of US$1.6 million dollars (the “Capital Raise”) within six (6) months of the Effective Date of this Amendment, or (b) if at least US$1 million is not expended by Pacific Chile and Pacific Copper on the Property and related project overhead costs within eighteen (18)
months of the Effective Date.

	
6.  
	
In the event that Gareste exercises the Rescission Right, Pacific Copper and Pacific Chile shall convey all of their interests in the Property promptly back to Gareste through appropriate documentation under Chilean law; such conveyance to warrant titles and be free of any liens or encumbrances created by, through and under Pacific Copper and Pacific Chile.
Similarly, in the case of exercise of the Rescission Right, Gareste agrees that any shares placed in escrow or otherwise received by Gareste by virtue of this transaction, shall be released and returned to Pacific Copper free of any liens or encumbrances created by, through and under Gareste.

	
7.  
	
Other than as expressly provided herein, the parties reconfirm, restate and adopt the terms of the MPAA.

 

 

 

 

WHEREAS, the parties have executed this Amendment as of the date above first written.

 

PACIFIC COPPER CORP.

 

By:  _______________________

 

Title: ______________________

 

 

PACIFIC COPPER CHILE LIMITADA

 

By:  _______________________

 

Title: ______________________

 

 

SOCIEDAD GARESTE LIMITADA

 

By: _______________________

 

Title: _____________________exhibita-firstamendment.htm

EXHIBIT A to FIRST AMENDMENT TO AND RESTATEMENT OF MINERAL PROPERTY ACQUISITION AGREEMENT

 

SAN ENRIQUE PROPERTIES, ATACAMA REGION III CHILE

 

	  	  	  	  	  	  	  	  	  	  	  	  
	
NOMBRE
	
LUGAR
	
ESTADO
	
NORTE
	
ESTE
	
Sam 56
	
Presentacion
	
FOJAS
	
NUMERO
	
NOTARIA
	
Hect. Totales
	
Hect. Sobrepuestas

	
Esperanza del 1 al 10
	
Sierra   Negra
	
Mensura en Revision
	
6905280
	
358885
	
Sam 56
	
5/6/2008
	
3090 Vta.
	
2509
	
COPIAPO
	
100
	  
	
La Recuperada del 1 al 10
	
Sierra   Negra
	
Mensura en Revision
	
6904700
	
358750
	
Sam 56
	
2/9/2009
	
840 Vta.
	
629
	
COPIAPO
	
90
	  
	
La Maria del 1 al 10
	
Sierra   Negra
	
Solicitud de Mensura
	
6905700
	
358200
	
Sam 56
	
5/19/2009
	
374
	
2498
	
COPIAPO
	
70
	  
	
Negro
	
Sierra   Negra
	
Pedimento
	
6906900
	
359450
	
Sam 56
	
10/9/2009
	
6755
	
5073
	
COPIAPO
	
300
	
300

	
Negro Uno
	
Sierra   Negra
	
Conc. de Exploración
	
6906900
	
357450
	
Sam 56
	
11/17/2008
	
8331
	
6544
	
COPIAPO
	
300
	
300

	
Negro Dos
	
Sierra   Negra
	
Conc. de Exploración
	
6904900
	
358700
	
Sam 56
	
11/17/2008
	
8332 Vta.
	
6545
	
COPIAPO
	
300
	
300

	
Negro Tres
	
Sierra   Negra
	
Conc. de Exploración
	
6905900
	
358950
	
Sam 56
	
11/17/2008
	
8333 Vta.
	
6546
	
COPIAPO
	
200
	
200

	
Negro Cuatro
	
Sierra   Negra
	
Conc. de Exploración
	
6905500
	
360500
	
Sam 56
	
6/25/2009
	
4243 Vta.
	
3104
	
COPIAPO
	
300
	
300

	
Negro Cinco
	
Sierra   Negra
	
Conc. de Exploración
	
6903900
	
358500
	
Sam 56
	
6/25/2009
	
4233 Vta.
	
3105
	
COPIAPO
	
300
	
300

	
Negro Seis
	
Sierra   Negra
	
Conc. de Exploración
	
6902900
	
358500
	
Sam 56
	
6/25/2009
	
4234 Vta.
	
3106
	
COPIAPO
	
300
	
300pressrelease-8k.htm

 

February 23, 2010                                                                                                                                                                                       OTCBB:PPFP

Amendment to San Enrique Mineral Property

Acquisition Agreement and Termination of Yerbas Buenas Letter of Intent

 

Pacific Copper Corp. (OTCBB: PPFP) (CUSIP # 69412U 10 0) announces
an amendment dated February 22, 2010 to the Mineral Property Acquisition Agreement (the “MPAA”) dated June 11, 2009 to purchase the San Enrique property located in Atacama Region III, Chile (“San Enrique”) from the vendor, Sociedad Gareste Limitada (“Gareste”).  Gareste is a private Chilean limited liability partnership in which one of the Company’s directors, Harold Gardner, is a 50% owner and co-managing partner. Under the terms of the amendment, Gareste
has agreed to include in the purchase additional mineral exploration concessions adjacent to San Enrique, comprising 160 hectares, and applications for another 2,000 hectares of adjacent concessions that overstake current concessions with senior rights in third-parties. The parties have also agreed to extend the Closing Date of the MPAA to June 30, 2010 and to grant and extend to Gareste a specific right of rescission (“Rescission Right”) of the transaction, which after closing, and if exercised,
will obligate the Company and its subsidiary Pacific Copper Chile Ltda. to convey the mineral titles back to Gareste if the Company does not raise and add to its treasury the net sum of US$1.6 million dollars within six (6) months of the Effective Date of the Amendment, or if US$1 million is not expended by Pacific Copper Chile and the Company on the Property and related project overhead within eighteen (18) months of the Effective Date. The share portion of the consideration payable by the Company to the vendor,
amounting to 7 million shares of the Company, shall be placed in escrow pending the satisfaction of closing conditions and the further satisfaction of the conditions that would otherwise give rise to the Rescission Right. In the case that the Rescission Right is exercised, Gareste is obligated to release from escrow and return any share consideration received for this transaction back to the Company. The other terms of the MPAA remain unchanged, including a 2% net smelter return royalty capped at $6 million,
subject to a buyback right by the Company of one-half of the royalty for the sum of $2 million prior to commencement of commercial production.

 

About the San Enrique Project and Company Leachable Copper Strategy

 

Pacific Copper's corporate strategy includes a copper oxide and leachable copper component through acquisition, exploration and development of suitable low cost, surface mineable, heap leachable projects in northern Chile. The San Enrique property represents a key strategic target in Atacama Region III, complementing the Company's La Guanaca,
El Corral/La Mofralla and Venapai properties for which reports have been filed pursuant to Canadian National Instrument 43-101 Standards for Disclosure of Mineral Projects and its Companion Policy ("NI 43-101").

 

None of the properties in which the Company has an interest has been determined to contain any mineral resources or reserves under NI 43-101, and at this time there is no basis for any economically viable mineral deposit on any of the Company's properties.

 

The Company also announces that it has agreed with Gareste to terminate the Letter of Intent dated September 9, 2008 (the “LOI”), for the Company’s purchase of the Yerbas Buenas property located in Atacama Region III, Chile. The Company has determined from its exploration efforts that the Property appears to principally
contain silver mineralization, and therefore is not of primary interest to the Company.  In exchange for the release of this property back to Gareste, and in consideration of exploration efforts expended by the Company during the pendency of the LOI, Gareste has agreed to convey to Pacific Copper a 2% Net Smelter Return royalty on mineral production from the property, capped at US$250,000.

 

You can find more detailed information with respect to the company's projects, corporate information and leadership team at the company's website: www.pacificcopper.com

 

Investor Relations info@pacificcopper.com

Hal Johnston at 877-306-7979

Should you have any questions or comments, please do not hesitate to contact the Company or our Investor Relations people at the referenced numbers above.

 

 

Safe Harbor Statement -Statements in this news release, which are not purely historical, are forward-looking statements within the meaning of applicable Canadian securities laws, including any statements regarding beliefs, plans, expectations or intentions regarding the future. These
statements involve risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements contained herein. Such risks and uncertainties may include, but are not limited to: (i) the ability of the Company to raise sufficient capital to close the acquisition of the San Enrique property and extinguish the rescission right of the vendor, (ii) the ability of the Company to develop mineral resources and reserves on its properties, (iii) the risks and uncertainties
set forth in the Company's filings with the SEC such as the ability to obtain additional financing, the ability to manage growth, acquisitions of technology, equipment or human resources, the effect of economic and business conditions, the ability to attract and retain skilled personnel, the risks inherent in exploration, and factors outside the control of the Company. These forward-looking statements are made as of the date of this news release, and the Company assumes no obligation to update the forward-looking
statements or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although the Company believes that the beliefs, plans, expectations and intentions contained in this news release are reasonable, there can be no assurance those beliefs, plans, expectations or intentions will prove to be accurate. Investors should consider all of the information set forth herein and should also refer to the risk factors disclosed in the Company's periodic reports filed
from time-to-time with the SEC. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

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