Gitennes Exploration Inc. - Corporate Update
VANCOUVER,
Nov. 29, 2012 /CNW/ - Gitennes
Exploration Inc. (TSXV-GIT) is pleased to announce that it has
received the second payment of $250,000 and 200,000 shares under the Share Sale
and Mining Agreement signed with AndeanGold Ltd. on May 23, 2012 on the Urumalqui silver-gold
project. The remaining payments due to Gitennes from
AndeanGold total $2.25 million and
1.6 million AndeanGold common shares with the next payment due
May 23, 2013 consisting of
$350,000 and 250,000 shares.
AndeanGold which is the operator of the
Urumalqui Project in Peru has the
right to earn a 100% interest in the Project by means of two
agreements; an option signed on April 21,
2010 to earn a 60% interest and a second option to acquire
the additional 40% by means of a Share Sale and Mining Agreement.
To earn the 60% AndeanGold must spend $3,000,000 in qualifying exploration expenditures
on the Project over a four-year term, complete 7,000 metres of
cumulative drilling by the end of the third year and issue 80,000
shares to the Gitennes in four tranches (60,000 received). To
earn the additional 40% interest in the Project, AndeanGold must
make cash payments of $2,750,000
($500,000 received) and issue
2,000,000 shares (400,000 received) to the Company over 30 months
which commenced May 23, 2012.
In addition to meeting its current obligations
under the two agreements with Gitennes, AndeanGold has accomplished
milestones on the Project that include:
- Approximately 5,070 metres of drilling and expenditures of
approximately $2.3 million;
- Completed an initial resource estimate, News Release
November 15, 2011;
- Metallurgical studies using drill core sample composites that
yielded favourable results using conventional recovery techniques,
News Release August 23, 2012;
- Detailed trenching and channel sampling of the main Urumalqui
Vein, News Release June 21,
2012;
- AndeanGold also recently announced the listing of its common
shares on the Lima stock exchange
("BVL") where it joins forty-three other duo-listed small-cap
explorers, mid-tier producers and multinational senior
producers.
Gitennes continues to review mineral properties,
primarily gold and silver, for option or acquisition supported by
the payment stream from the Urumalqui transaction.
On behalf of the Board of Directors
of
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.
DISCLAIMER: This news release includes
certain statements, other than historical information, that may be
deemed "forward-looking statements". All statements in this
release, other than statements of historical facts, including,
without limitation, statements regarding future plans and
objectives of the companies are forward-looking statements that
involve various risks and uncertainties. Although Gitennes believes
the expectations expressed in such forward-looking statements are
based on reasonable assumptions, such statements are not guarantees
of future performance and actual results or developments may differ
materially from those in the forward-looking statements.
Forward-looking statements are based on a number of material
factors and assumptions. Factors that could cause actual results to
differ materially from those in forward-looking statements include
general economic, market or business conditions, and other risks
detailed herein and from time to time in the filings made by the
companies with securities regulators. Mineral exploration and
development of mines is an inherently risky business. Accordingly
the actual events may differ materially from those projected in the
forward-looking statements. Historical information necessarily is
not current and is provided for your reference only. No warranty
whatsoever is made that any of the historical information is
accurate, precise, or up-to-date. For more information on Gitennes
and the risks and challenges of their businesses, investors should
review their annual filings that are available at
www.sedar.com.
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.