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Option to Acquire Argentina Property
August 27, 2003 - Consolidated Pacific Bay Minerals Ltd. (CBP) is pleased to announce that it has been granted an option to acquire a 51% interest in the Regalo Mineral Property presently controlled 100% by IMA Exploration Inc. and its Argentine subsidiary, Inversiones Mineras Argentinas, S.A. (IMA). Pursuant to the terms of the agreement, to earn its option CBP must issue 900,000 common shares in its capital to IMA within ten days of regulatory approval of the transaction and complete US$625,000 in work on the property over a period of three years. Upon earning the 51% interest, CBP will have the exclusive Option to acquire an additional 19% interest in the Property by completing a feasibility study and financing the Property to production. If PacBay fails to finance the property into production within one (1) year after receiving a positive feasibility study from a third party, then IMA would have the right to review and make an offer to take the property into production. This offer would be subject to a fairness opinion by a mutually agreed upon independent appraiser.
The Regalo Property is situated in Chubut Province, within the Patagonia Region of Southern Argentina and is one of the properties selected by IMA because of their proximity and geological similarity to IMA's recently discovered Navidad bonanza grade silver deposit. The Regalo claim consists of an area of 10,000 hectares, underlain by a sedimentary/volcanic sequence of Jurassic (Canadon Asphalto) formations reminiscent of the bedrock beneath the Navidad property; and, according to IMAs geologists, highly prospective for low sulphidation gold systems similar to the Esquel and Cerro Vanguardia deposits. Preliminary stream-sediment sampling has identified highly anomalous gold values along a six (6) kilometer drainage system, ranging from 134 to 831 ppb Au. IMA geologists also note that, this is a very strong gold anomaly that requires a significant follow-up effort to identify its source.
The Regalo Property is accessible by road from the Atlantic port town of Rawson and/or the interior town of Esquel. Summer exploration season coincides with Canadian winter months.
The Company also wishes to announce that it has arranged a private placement of 2,000,000 units at $0.10 per share, subject to regulatory approval. Each unit consists of one common share and one warrant to purchase an additional common share at a price of $0.15 for one year.
The Company has also agreed to grant incentive stock options to purchase 600,000 shares @ $0.10 per share, for a period of 2 years, subject to regulatory approval.
On Behalf Of The Board Of Directors
Guilford H. Brett
President
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