Aurelio Completes Mineral Property Acquisition, Appoints New Board of Directors and Announces Financing
Wednesday, August 23rd 2006
Aurelio Resource Corporation (“Aurelio”) (OTCBB: AULO) is pleased to announce that it has completed, pursuant to an agreement entered into with Aurelio Resources Inc. (“ARI”) and its shareholders dated April 27, 2006, the acquisition of all of the issued and outstanding common stock of ARI, a privately-owned Colorado corporation engaged in mineral development, expansion and exploration. As a result of this purchase transaction, ARI is now a wholly-owned subsidiary of Aurelio.
ARI owned a 100% interest in 13 mining claims on its Hill Copper property located in Arizona, USA. In addition, the company has an option to earn a 100% interest in the Gavilanes gold project, which consists of 3 gold mining claims/concessions in Durango, Mexico. As a result of this acquisition, ARC’s agenda includes increasing the already existing drill indicated resource on the Hill Copper Property and exploration and development activities beyond what ARI has achieved on both the Hill Copper and Gavilanes projects previously.
The companies new board of directors now consists of Dr. Frederik Warnaars, Ph.D., Steve Doppler, B.A. Geo., B.A. Econ., and David C. Jonson, M.Sc. Geo., Dr. Warnaars has been appointed President.
In consideration of the acquisition of ARI, 10,000,000 common shares were issued by Aurelio to ARI’s former shareholders. In addition, former directors of Aurelio have returned certain restricted shares to treasury for cancellation. Upon closing of the said transaction the total issued and outstanding shares of Aurelio are 28,436,500.
In addition, the Company is pleased to announce a Private Placement of 4,000,000 shares at a price of $0.40 per share resulting in total proceeds for the company of US$1,600,000. These funds will be used to advance and further develop the Hill Copper Project and begin drilling at the Gavilanes Gold Project.
Hill Copper Project
The Hill Copper Project consists of thirteen unpatented lode-mining claims covering approximately 260 acres. The unpatented mining claims are identified as MAN 1 through MAN 6, which are contiguous, and MAN 7 through MAN 13, which are also contiguous. Two hundred and eighty (280) drill holes were completed by several major companies on the property in the past. A drilled indicated resource of approximately 52.3 million tons grading 0.65% Cu has been outlined totaling over 680 million lbs of copper, as estimated by current management. In addition, 53 historic mining shafts have been identified, indicating the significant amount of past mining activity that has taken place on the property.
The company has planned an exploration and development program at the Hill Copper Project to further define, upgrade and expand the already existing drill indicated resource. In addition to multiple twin holes and infill drilling to upgrade the known resource, Aurelio has identified several high priority exploration targets which are anticipated to expand the resource beyond the current levels. The primary target for the program is mainly copper; however, by-products of gold, zinc and silver exist within the property as well.
Gavilanes Gold Project
Aurelio’s new wholly-owned subsidiary, ARI, owned 98% of the issued and outstanding common shares of Minera Milenium S.A. de C.V., a company incorporated under the laws of Mexico. Minera Milenium S.A. de C.V. owns an option to earn a 100% undivided interest in certain mining claims/concessions situated in the Tamazula District, Durango, Mexico (the “Gavilanes Property”).
The Gavilanes Gold Project consists of mining claims/concessions covering approximately 1000 hectares within the Mexican gold belt. To maintain the option in good standing, the Company is required to make payments totalling $500,000 to Minera Holmex S.A. de C.V. over the next 5 years.
The company has planned an exploration program and has already defined 10 diamond drill targets at the Gavilanes Gold Project. Aurelio will be targeting primarily gold, with by-products of silver.
A portion of the purposed private placement will be used in order to carry out the planned work program and to maintain the option in good standing.
The New Board of Directors
Dr. Frederik Warnaars, Ph.D., President, Chief Executive Officer and a Director
Dr. Warnaars possess over thirty-one years of experience in mineral discovery and development, mine geology, geochemistry and political and economic assessments. He has managed numerous successful exploration and development teams, acquiring, exploring and developing silver and copper properties in Mexico, USA and Central America. He gained corporate experience with Cyprus minerals, Exxon minerals, Kennecott Copper, and Behre Dolbear. From 1988 to 1993, Dr. Warnaars acted as a senior staff geologist for Cyprus Mineral Company, as well as manager of Cyprus Minera de Honduras, for which he discovered major precious metal and base metal deposits. From 1986 to 1988, Dr. Warnaars was an Associate with Behre Dolbear Riverside & Company where he discovered a new disseminated gold deposit in Ecuador.
Dr. Warnaars is credited with the discovery of five porphyry copper-molybdenum deposits in North America. He is also responsible for several base and precious metal deposits discoveries in Australia, Indonesia, Papa New Guinea, Hispaniola and Latin America.
In addition to Dr. Warnaars accreditation as a Doctor in Petrology, throughout his career he has also written and published several articles concerning geology.
David C. Jonson, M.Sc. Geo., Vice-President of Exploration and a Director
Mr. Jonson has amassed over forty-four years of experience as a mining geologist. His former years were spent in management and for the past 27 years he has acted as a geological consultant. Since 1977, Mr. Jonson has provided consulting services to various clients for whom he has made field or office evaluations of over 600 prospects, mines and mining districts and has discovered or identified numerous large, attractive precious and base metal prospects, prepared several bankable feasibility studies, and designed computerized mining models. During his long and distinguished career, he has also discovered several precious and base metal deposits that have been profitably mined.
After spending two years with the U.S. Army Corps of Engineers, Mr. Jonson earned a Master of Sciences in Geology from the Colorado School of Mines. Mr. Jonson is a Fellow with the Society of Economic Geologists.
Stephen Doppler, B.A. Geo., B.A. Econ., Chairman of the Board of Directors and a Director
Mr. Doppler has twenty years of experience in international consulting and senior and executive positions with publicly traded mineral companies. He has implemented a number of successful gold, silver and copper property acquisitions for junior and mid-tier mining companies worldwide. At Cyprus Minerals, he was responsible for strategic planning for the copper and gold divisions. From 1979 to 1994, he provided consulting services in the resource sector, which included, designing a long range strategic plan for the creation of a leading zinc producer, and preparing fair market evaluations, appraisals and optimization studies for development stage and operating stage companies with copper, gold and silver projects. From 1996 to 1999, He acted as President, CEO and Chairman of Adamas Resources Corp., a junior resource company listed on the TSX Venture Exchange, where he designed and successfully implemented a turn around strategy for the company. Since 1999, Mr. Doppler has acted as the managing director of Doppler & Associates of Colorado, a consulting firm specializing in reverse takeovers and other corporate transactions involving OTC-BB companies. He has provided advisory services in the area of mergers and acquisitions to many successful international mining companies.
He has also worked as a Senior Mineral Economist with Pincock, Allen & Holt, a recognized engineering firm. Mr. Doppler earned a Master of Science degree in Mineral Economics from the Colorado School of Mines, and a Bachelor of Arts (Geology, and Economics) from Bates College in Maine.
Mr. Patrick McGrath and Mr. Paul Fong have resigned as directors and officers of the company. We thank them for their services and efforts for the past few years.
Change of Corporate Headquarters
In keeping with our change of management, we have moved our corporate headquarters to 5554 South Prince Street, Suite #209, Littleton, CO 80120, USA. The Company’s new President, Fred Warnaars, can be reached at this office.
On behalf of the Board of Directors,
Aurelio Resource Corporation
Fred Warnaars, President
Safe Harbor Statement
Statements in this news release that are not historical are forward looking statements. It is important to note that the Company’s actual outcomes may differ materially from those statements contained in this press release. Forward looking statements in this news release include that we will pay the option payments on the Gavilanes property, that we will conduct exploration programs on our properties, that we have a potentially commercially viable copper deposit, that a drilled indicated resource shows substantial copper on the property; and that we will close of private placement for proceeds of $1,600,000. Factors which may delay or prevent these forward looking statements from being realized include misinterpretation of data; that we may not be able to raise sufficient funds to complete our intended exploration; that investors who have committed to invest do not complete, that our application to drill may be denied; that weather, logistical problems or hazards may prevent us from exploration; that analysis of data can be done accurately and at depth; that results which we have found in any particular location are not necessarily indicative of larger areas of our property; a drilled indicated resource is an estimate by management and may not be accurate; and that despite encouraging data there may be no commercially exploitable mineralization on our properties. Readers should refer to the risk disclosures outlined in the Company’s 8-K describing this acquisition filed with the Securities and Exchange Commission.
Contacts: Aurelio Resource Corporation Fred Warnaars President 1-800-803-1370 or (303) 795-3030
Website: coming soon (www.aurelioresources.com)
