Casablanca Mining Subsidiary Agrees to Sell Equity Interest in Copper and Copper Sulfate Subsidiary

January 30, 2012 at 01:55 pm

MarketScreener.com By

CASABLANCA MINING (OTCQB: CUAU) announced today that its subsidiary, Santa Teresa Minerals SA, had entered into an agreement to sell its 60% interest in Sulfatos Chile SA to Bluestone Minerals SA. The purchase price will be cash in the amount of $2.2 million, payable $1 million at closing and the balance in monthly installments as demanded by Santa Teresa, and an equity interest in Bluestone that represents 20% of the outstanding stock of Bluestone after the transaction. Bluestone was recently formed by Juan Carlos Camus Villegas, Chief Executive Officer, Chairman of the Board, and a shareholder of Casablanca, and Angelique de Maison, a director and shareholder of Casablanca, to acquire the interest in Sulfatos Chile. The transaction will close upon completion of the "escritura" process as proscribed by Chilean law.

"This is a very beneficial transaction for our company as it allows us to streamline our operations and focus our efforts and finances on our core business, our gold projects. We will use the cash to continue to fund our Free Gold project and accelerate the exploration efforts at our New Gold project," said Casablanca Mining President Zirk Engelbrecht. "In addition, we have been able to retain a substantial minority equity interest in Sulfatos Chile through our interest in Bluestone Minerals."

About Casablanca Mining, Ltd.:

Casablanca Mining (OTCQB: CUAU), through its wholly owned subsidiary Santa Teresa Minerals, S.A., engages in the acquisition, exploration, development, and operation of precious metal properties in South America. Its gold and copper mining operations are based near Santiago, Chile. Santa Teresa Minerals currently has, directly and indirectly through various equity interests, mining rights in a producing gold mine, "Free Gold," and in exploration projects, the "Casuto Project," consisting of Los Azules 1-3, Tauro 1-6, Los Chipi 1-16 and the "New Gold Project," consisting of Los Pinos 1-30 and Teresita 1-20. These projects include 80 different mining and mineral exploration properties including gold, copper and copper sulfate. Santa Teresa Minerals also owns an equity position of Sociedad Sulfatos Chile S.A., a copper sulfate production project that owns the Anica Copper Mines, and a 60% equity position in a company with the rights to a revolutionary mining technology that extracts gold, silver and copper from raw mining materials using a proprietary and patented electrolysis method of electromining.

FORWARD LOOKING STATEMENT: This press release contains forward-looking statements, including expected industry patterns and other financial and business results and estimates that involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from results or estimates expressed or implied by this press release. Such risk factors include, among others: whether Casablanca Mining can successfully execute its operating plan, including mining and exploration projects; results of exploration, project development and capital costs of mineral properties; volatility of market prices for gold, copper and copper sulfate; Casablanca Mining's ability to integrate acquired companies and technology; Casablanca Mining's ability to retain key employees; general market conditions; and other factors discussed under "Risk Factors" in its annual report on Form 10-K for the fiscal year ended December 31, 2010. Actual results may differ materially from those contained in the forward-looking statements in this press release. Casablanca Mining does not undertake any obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.