Miocene Exploration Expenditures News Release 14-17
July 3, 2014
Cornerstone Reduces Miocene (Chile) Project Work Commitments
Mount Pearl, NL, Canada: Cornerstone Capital Resources Inc. ("Cornerstone" or "the Company") (TSXV-CGP) (F-GWN) (B-GWN) (OTC-CTNXF) announces that it has further amended the Miocene (Chile) Property Agreement (see news releases dated February 22, 2011 and May 8, 2014), to reduce the $5 million in required exploration expenditures to $2.5 million. The Miocene Project can be viewed on the Cornerstone web site at www.cornerstoneresources.com.
Under the amended Agreement dated June 27, 2014, Cornerstone now has the right to acquire an undivided 100% interest in any concessions acquired using a proprietary database within the Miocene Project area in return for the following consideration (all references to $ are to Canadian $):
| On or before | Cash | Securities | Exploration or Other Work Commitments |
| April 28, 2012 (Paid) | $20,000 | Common Shares valued at $20,000 | Nil |
| April 28, 2013 | Nil (deferred) | Nil (deferred) | Nil |
| April 28, 2014 (Paid) | $20,000 | Common Shares valued at $20,000 | Nil |
| April 28, 2015 | $30,000 | Common Shares valued at $30,000 | $250,000 |
| April 28, 2016 | $60,000 | Common Shares valued at $60,000 | $250,000 |
| April 28, 2017 | $120,000 | Common Shares valued at $120,000 | $500,000 |
| April 28, 2018 | Nil | Nil | $750,000 |
| April 28, 2019 | Nil | Nil | $750,000 |
The acquisition is subject to a 2.0% Net Smelter Royalty ("NSR"), one-half (1.0%) of which can be purchased by Cornerstone at any time for $1,000,000.
Excerpt from the 3Q 2015 MD&A (page 13)
On July 3rd, 2014, the Company announced that it had further amended the Miocene (Chile) Property Agreement (see also news releases dated February 22, 2011 and May 8, 2014), to reduce the $5 million in required exploration expenditures to $2.5 million.
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Excerpt from the 4Q 2015 MD&A (page 15)
On July 3rd, 2014, the Company announced that it had further amended the Miocene (Chile) Property Agreement (see also news releases dated February 22, 2011 and May 8, 2014), to reduce the $5 million in required exploration expenditures to $2.5 million.
Excerpt from 2015 Annual Financial Statement (page 34)
19. COMMITMENTS
On February 22, 2011 the Company signed an agreement amended in 2013 and 2014) to explore the Miocene gold-silver-copper project located in the Regions of Atacama and Antofagasta of northern Chile. This project covers a large area of 14,770 km2. The Company had entered into an agreement to acquire exclusive rights to a proprietary database covering the Miocene project area, and had already utilized the information to apply for mineral concessions to explore several prospective areas. The agreement gave the Company the right to acquire an undivided 100% interest in any concessions acquired using the database within the Miocene project by incurring exploration expenditures of $5,000,000 and making cash payments of $250,000 and issuing shares of the Company valued at $250,000 over a five-year period ending in 2019. The acquisition is subject to a 2.0% royalty, one-half (1.0%) of which can be purchased by the Company at any time for $1,000,000.
Additional cash and shares are required for property option payments during the next four years. In addition, certain property expenditures are required in order for the Company to maintain title to various properties. Details of cash and share payments as well as required property expenditures are as follows:
Cash Shares Expenditures
2016 $60,000 $60,000 $500,000
2017 $120,000 $120,000 $1,000,000
2018 - - $1,500,000
2019 - - $1,500,000
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$180,000 $180,000 $4,500,000
The July 2014 reduction in exploration expenditures has been reversed.
The change has not been announced.
The 4Q MD&A and the Annual Statements do not agree.
One says $2,500,000 and the other $5,000,000
How did that happen?
Any reasonable clarification is appreciated.........................................