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:
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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.
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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.