Metallica Signs Option Agreement For Rio Figueroa Project

TORONTO, ON - Metallica Resources Inc. reported that its wholly owned subsidiary Minera Metallica Resources Chile Ltda. (Metallica) has entered into an agreement with Antofagasta Minerals S.A. (Antofagasta), a Chilean company and wholly owned subsidiary of Antofagasta PLC, whereby Antofagasta has the option to earn up to a 70% interest in Metallica's Rio Figueroa copper-gold project in Chile. The Rio Figueroa project is currently 100% owned by Metallica and is located approximately 125 kilometers northeast of Metallica's 30% owned El Morro project.
The agreement provides Antofagasta with the right to earn an initial 30% interest in the project by making a US$50,000 cash payment to Metallica upon signing and a firm commitment for cash purchase payments to Metallica totaling US$2.6 million by September 2, 2009. Metallica will in turn use the $2.6 million in cash payments to complete its option to purchase a 100% interest in the project from SCM Los Potrillos, an underlying property owner controlled by the Chilean National Mining Company (ENAMI). Upon completion of its option to earn a 30% interest, the project will be operated under a joint venture shareholder's agreement between the companies. Antofagasta also has the option to earn an additional 20% interest in the project by completing US$7 million in exploration expenditures by June 5, 2012, two-thirds of which must be directed specifically toward exploration drilling activities which are t
The company's  address is Suite 165, 12200 E. Briarwood Ave., Centennial, CO 80112, (303) 796-0229, fax: (303) 796-0265.