Gitennes Closes Sale of Control of Urumalqui Silver Project
VANCOUVER, Dec. 23, 2014 /CNW/ - Gitennes Exploration Inc. ("Gitennes or the Company", GIT-TSXV) has closed the sale of the 40% interest in the Urumalqui Silver Project to AndeanGold Ltd. under the terms of the amended Share Sale and Mining Agreement (the "Agreement") as announced on November 17.
The terms of the sale are:
1) Gitennes receives a 1.5% Net Smelter Royalty on all metals produced from Urumalqui. The NSR will be for the life of the Project, has no cap on payments, no buyback and no first right of refusal; |
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2) AndeanGold to make the following payments (all in C$): |
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a) $125,000 (received); |
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b) $150,000 on or before February 15, 2015; |
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c) $150,000 on or before April 19, 2015 and |
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d) 175,000 on or before June 21, 2015; |
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e) If there are any amounts outstanding under b) c) and d) above at June 21, 2015 then the amounts outstanding will become a Convertible Debenture ("CD") with a three year term a coupon of 6% per annum and a conversion of six cents per AndeanGold share. The issuance of the CD will be subject to regulatory approval. |
AndeanGold is exploring Urumalqui under the Agreement and a 60% Option Agreement and with the closing of the sale of the 40% interest AndeanGold now controls 100% of Urumalqui.
About Urumalqui:
Urumalqui is an advanced silver-gold project located approximately 70 kilometres by road east of the port city of Trujillo, Perú. Gitennes acquired Urumalqui in 2003 in a joint venture and in June 2005 the joint venture was terminated and Gitennes assumed 100% control of the Project. Exploration activities between 2003 and 2008 included three core drilling campaigns totalling 47 holes. In 2010 the project was optioned to AndeanGold Ltd whom has completed two diamond drilling campaigns (44 holes totalling 7,124 metres). In November 2011 an Initial Resources Estimate for the Urumalqui Vein was prepared by MQes, Inc. The technical report supporting the estimate is available under both AndeanGold and Gitennes' company profiles at www.sedar.com.
GITENNES EXPLORATION INC.
Ken Booth,
President
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This press release does not constitute an offer to sell or a solicitation to buy any of the securities of Gitennes in the United States.
SOURCE: Gitennes Exploration Inc.
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Information about Gitennes can be found at www.gitennes.com.
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