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.
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.
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.
For further information: Information about Gitennes can be found at www.gitennes.com.