VANCOUVER, Nov. 17, 2014 /CNW/ - Gitennes Exploration
Inc. ("Gitennes or the Company", GIT-TSXV) and AndeanGold Ltd.
have signed a binding Memorandum of Understanding ("MOU") to amend
the Share Sale and Mining Agreement (the "Agreement") which gives
AndeanGold the right to purchase a 40% interest in the Urumalqui
Silver-Gold Project. The amendment to the Agreement is
expected to be signed on or before December
19, 2014 and once signed AndeanGold will have purchased the
40% interest in Urumalqui.
Under the terms of the MOU Gitennes and AndeanGold have agreed
to amend the Agreement as follows:
- AndeanGold will grant to Gitennes 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;
- AndeanGold to make the following payments (all in C$):
- $125,000 on or before
December 19, 2014, if this payment is
not made the Agreement will terminate immediately;
- $150,000 on or before
February 15, 2015;
- $150,000 on or before
April 19, 2015 and
- 175,000 . on or before June 21,
2015;
- If there are any amounts outstanding under b) c) and d) above
by 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 that together allows AndeanGold to own 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.