Trading Symbol TSX: GGC
VANCOUVER, Sept. 24 /CNW Telbec/ - Genco Resources Ltd. (TSX: GGC)
reports that it has granted Andover Ventures Inc. an extension respecting the
payment of the outstanding amount of approximately US $4,000,000 owed to Genco
for the purchase of Genco's shares in Chief Consolidated Mining Company.
Under the terms of the Purchase Agreement, Andover issued
1,500,000 common shares and paid CAD $1,000,000 to Genco on July 31, 2008.
Under the terms of the Payment Extension Agreement, Andover paid CAD
$1,000,000 to Genco on September 22, 2008 and will pay the remaining
outstanding balance of approximately US $3,000,000 to Genco on or before
October 31, 2008. In consideration of Genco entering into the Payment
Extension Agreement, upon TSX Venture Exchange approval, Andover will issue
500,000 common shares to Genco.
Prior to October 31, 2008, Andover has the right to elect to make a
payment of CAD $1,000,000 and extend the payment of the remaining balance of
approximately US $2,000,000 until January 31, 2009 by issuing a further
250,000 common shares to Genco. Should Andover exercise its option to defer
the final payment of approximately US $2,000,000 until January 31, 2009, all
funds previously paid and shares issued to Genco will be non-refundable.
Under the terms of the Purchase Agreement, Genco will receive a 1.5% Net
Profits Royalty on Andover's proportional profits of any future production
from the Trixie Mine and Burgin Extension Deposits, located on Chief's mining
properties in the Tintic Mining District. Genco has the right to convert the
Net Profits Royalty to 1,500,000 Andover common shares at any time up to the
first anniversary of commercial production at either the Trixie Mine or the
Burgin Extension Deposit. On September 23, 2008, Genco informed Andover that
it will exercise its option to receive 1,500,000 Andover common shares in lieu
of the Net Profits Royalty.
About Genco Resources Ltd.
Genco's core asset is the producing La Guitarra silver/gold mine, which
is located in the Temascaltepec Mining District of Mexico. La Guitarra mine
currently consists of two underground operation centres - La Guitarra and San
Raphael - and a flotation mill with a proven capacity of 320 tonnes per day.
Genco believes significant potential exists to expand production within the
39,714 hectares of mining concessions it currently owns or leases in the
Temascaltepec Mining District. Genco has retained Kappes, Cassiday and
Associates to prepare a feasibility study to assess the economics of expanding
This news release contains certain forward-looking statements that
involve risks and uncertainties such as statements of the Company's plans,
objectives, strategies, expectations, and intentions. The words "may",
"would", "could", "will", "intend", "plan", "believe", "estimate", "expect"
and similar expressions, as they relate to the Company, or its management, are
intended to identify such forward-looking statements. Many factors could cause
the Company's actual results, performance or achievements to be materially
different from any future results, performance or achievements that may be
expressed or implied by such forward-looking statements, including those
factors discussed below and in filings made with the Canadian securities
regulatory authorities. Should one or more of these risk factors or
uncertainties materialize, or should assumptions underlying the
forward-looking statements prove incorrect, actual results may vary materially
from those described herein as intended, planned, anticipated, believed,
estimated or expected. The Company does not intend, and does not assume any
obligation to update these forward-looking statements.
The Toronto Stock Exchange has not reviewed the contents of this release
and does not accept responsibility for the accuracy of the contents of
For further information:
For further information: Wayne Moorhouse, Vice President, Finance, (604)
682-2205, email@example.com; Renmark Financial Communications
Inc.: Neil Murray-Lyon: firstname.lastname@example.org; Dan Symons:
email@example.com, (514) 939-3989, Fax: (514) 939-3717,