ST. JOHN'S, NEWFOUNDLAND AND LABRADOR--(Marketwired - Jun 19, 2015) - Aurion Resources Ltd. ("Aurion") (TSX VENTURE:AU) reports that Genesis Gold Corp. ("Genesis") has agreed to amend the underlying Logan Pass lease with an option to purchase agreement for a second time. Aurion has a 15 year lease with an option to purchase a 100% interest in 8 unpatented claims, subject to a 2% NSR. Pursuant to the original agreement, executed in 2010, the consideration payable by Aurion for the lease to purchase option are by making annual cash payments starting at US$25,000 increasing to a maximum US$125,000. The option to purchase can be executed at any time by making a one-time US$3 million cash payment less any payments already made.
Under the 2nd amendment to the agreement, Genesis has agreed to accept reduced payments over the next three years and that the Purchase Amount will be considered as an Advance Royalty against the retained 2% Net Smelter Royalty. As consideration for the amendment Aurion will issue 200,000 shares to Genesis, subject to regulatory approval, and issue 50,000 shares annually starting on the 2015 anniversary date.
| Revised payment schedule: |
|
|
|
| Date: |
Cash: |
Shares |
|
| Upon signing Letter Agreement |
US$25,000 |
(paid |
) |
| On or before Oct 12, 2011 |
US$30,000 |
(paid |
) |
| On or before Oct 12, 2012 |
US$40,000 |
(paid |
) |
| On or before Oct 12, 2013 |
US$40,000 |
(paid |
) |
| On or before Oct 12, 2014 |
US$40,000 |
(paid |
) |
| On or before Oct 12, 2015 |
US$40,000 |
50,000 |
|
| On or before Oct 12, 2016 |
US$40,000 |
50,000 |
|
| On or before Oct 12, 2017 |
US$65,000 |
50,000 |
|
| On or before Oct 12, 2018 through 2025 |
US$125,000 |
50,000 |
|
About Logan Pass
The Logan Pass gold property comprises 147 unpatented claims and hosts oxidized, Carlin- style, gold-bearing, bedding-replacement jasperoids at the surface within flat-lying silty carbonates of the Pogonip Group.
The Logan Pass Project was generated by Don Merrick and John Zimmerman of Genesis Gold Corp, a private corporation specializing in gold exploration in the western US (www.genesisgoldcorp.com).
Mike Basha, P.Eng., P.Geo., President and CEO of Aurion, a Qualified Person as defined by National Instrument 43-101, is responsible for the preparation of this release.
Forward-Looking Statement
Certain statements contained in this release constitute forward-looking information. These statements relate to future events or future performance. The use of any of the words "could", "intend", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Companies' current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. The forward-looking information contained in this release is made as of the date hereof and Aurion is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein.
On behalf of the Board,
Mike Basha,
President & CEO
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.