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Casablanca Mining Increasing Ownership Stakes In Several Properties

^{Published on 2011-03-23 06:11:04 - Market Wire}
 

SAN DIEGO--([ BUSINESS WIRE ])--CASABLANCA MINING LTD. (OTCBB: CUAU) announced today that on February 2, 2011, its wholly-owned subsidiary, Santa Teresa Minerals, S.A., signed an agreement to increase its ownership stake in five of its Chilean gold mining subsidiaries. The increased stakes are being paid for in a combination of shares of Casablanca common stock and cashand have been submitted to their respective local mining authorities for approval and recording.

"The opportunity to add shareholder value by increasing our ownership stakes in the five projects mentioned is an important part of our business plan."

The ownership stake increases below show the increase in ownership in each joint venture that owns the respective mining properties:

• Cia Contractual Casuto, which is the majority owner of Tauro 1-4 mining properties of the Casuto Project; purchasing 100 shares, increasing stake to 65.125%.
• Sociedad Contractual Free Gold, which is the owner of the Free Gold Project; purchasing 500 shares, increasing stake to 99%.
• Sociedad Contractual Minera Los Azules, which is the owner of Los Azules 1-3 mining properties of the Casuto Project; purchasing 100 shares, increasing stake to 65.125%.
• Sociedad Legal Minera Tauro 5, which is the owner of Tauro 5 mining property of the Casuto Project; purchasing 30 shares, increasing stake to 85.215%.
• Sociedad Legal Minera Tauro 6, which is the owner of Tauro 6 mining property of the Casuto Project; purchasing 30 shares, increasing stake to 85.215%.

Juan Carlos Camus, CEO of Casablanca Mining and Santa Teresa Minerals, stated, aThe opportunity to add shareholder value by increasing our ownership stakes in the five projects mentioned is an important part of our business plan.a He added, aWe intend to grow Casablanca Mining organically as we obtain additional investment capital.a

Including the aforementioned acquisitions, Santa Teresa Minerala™s current mining property ownership stakes, combining both joint venture and direct ownership, are as follows:

CASUTO PROJECT

Chipi 1-16: 100% of all 16 properties

Tauro Uno: 70.25%

Tauro Dos: 70.25%

Tauro Tres: 70.25%

Tauro Cuatro: 70.25%

Tauro Cinco: 85.215%

Tauro Seis: 85.215%

Los Azules Uno: 65.125%

Los Azules Dos: 65.125%

Los Azules Tres: 65.125%

FREE GOLD

Free Gold: 99%

SOCIEDAD SULFATOS CHILE S.A.

Anica: 60%

About Casablanca Mining, Ltd.:

Casablanca Mining (OTC: 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, aFree Gold,a and in an exploration project, the aCasuto Project,a consisting of Los Azules 1-3, Tauro 1-6, and Los Chipi 1-16. These projects include 30 different mining and mineral exploration properties including gold, copper and copper sulfate. Santa Teresa Minerals also owns a 60% 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 Mininga™s ability to integrate acquired companies and technology; Casablanca Mininga™s ability to retain key employees; general market conditions; and other factors discussed under aRisk Factorsa in our current report on Form 8-K filed with the Securities and Exchange Commission on January 7, 2011. Furthermore, estimates of mineralized material are based upon estimates made by us and our consultants. Until mineralized material is actually mined and processed, it must be considered an estimate only. 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.