VANCOUVER, June 7, 2011 /CNW/ - Further to the news release dated April
15, 2011, Mountain-West Resources Inc. has now entered into a written
option agreement with Jorge Lopehandia and into a related historical
disclosure agreement. Pursuant to the option agreement, Mountain-West
has acquired the right to purchase an option. The price of purchasing
the option is 2,000 troy ounces of gold. The purchase price is payable
$925,589.88 (U.S.), which amount Mr. Lopehandia has acknowledged
A further $1-million within 10 days of exchange approval;
The balance of the purchase price within 15 days of exchange approval,
which, among other things, is to confirm the registration of the option
agreement against the mining claims (using a price of gold of $1,500
(U.S.) per troy ounce and an exchange ratio of $1 (Canadian) equals $1
(U.S.), the balance would be $1,074,410.12).
There is no express provision in the option agreement for extending the
period in which to exercise the purchase right.
Upon exercise of the purchase right, Mr. Lopehandia will be deemed to
have been granted Mountain-West the option to purchase 50 per cent of
the property of Mr. Lopehandia, as described herein.
The option is exercised by delivering a notice of option exercise, which
must be delivered within one year of the grant of the option, and then
paying to Mr. Lopehandia 7 per cent of 18 million troy ounces of gold
(assuming the gold price and exchange rates listed herein, the exercise
price would be $1.89-billion). The payment and exercise of the option
are conditional upon the delivery of a legal opinion opining, amongst
other things, that the property is free and clear of all liens,
charges, encumbrances, claims or rights of any kind whatsoever,
including, but not restricted to, those of the owners of any underlying
The option period may be extended for one year by the payment in cash of
the cost of 2,000 troy ounces of gold, as determined in the agreement.
If Mr. Lopehandia fails to provide clear title, then all funds provided
by the company become refundable. On the other hand, if for some other
reason, the company fails to exercise either the purchase right or the
option, then all amounts paid to Mr. Lopehandia become non-refundable.
The property includes Chilean mining claims that Mr. Lopehandia recently
acquired and which he claims cover a portion of Mina Pascua, which is
the Chilean portion of the mining deposit commonly called the Pascua
Lama deposit, which lies in both Chile and Argentina. Barrick Gold
Corp. claims to own the Pascua Lama deposit and thus the Mina Pascua
Mr. Lopehandia has a legal dispute with Barrick.
SOURCE Mountain-West Resources Inc
For further information:
(Note: This displays 1/3 of the actual News Release. To view in its entirety, please go to www.sedar.com, MWR Company Profiles.)