|
Valdez
Gold Inc. (TSX VENTURE:VAZ) ("Valdez" or the "Company")
is pleased to announce that it has signed a letter of intent with Gammon Gold
Inc. (GAM-TSX:GRS-NYSE, or "Gammon") pursuant to which the parties
agree to negotiate in good faith a definitive agreement whereby Gammon will
have the right to acquire Valdez' Los Jarros and Jarros Norte Properties (the "Properties") in
Chihuahua, Mexico by making successive payments over a four year period
aggregating US $2.5 million. The required option payments would be as follows:
Option
Payment Date
|
|
Amount
|
|
|
|
Upon execution of the Definitive
Agreement:
|
US$
|
50,000
|
12 Months after execution of
Definitive Agreement:
|
US$
|
100,000
|
24 Months after execution of
Definitive Agreement:
|
US$
|
250,000
|
36 Months after execution of
Definitive Agreement:
|
US$
|
400,000
|
48 Months after execution of
Definitive Agreement:
|
US$
|
1,700,000
|
|
|
|
Total Option Payments:
|
US$
|
2,500,000
|
In
addition, should Gammon initiate commercial production from the Properties,
Gammon would pay a royalty to Valdez equal to 2.0% of the Net Smelter Returns
("NSR") from such production. Should the cumulative royalty
payments to Valdez reach US$2,500,000, the NSR would be reduced to a 1% NSR
that would be paid so long as there is commercial production from the
Properties.
This
proposed transaction will allow the Company to focus its efforts and
resources on the Flume Property located near Dawson City, Yukon and the Bluff
Project on the Seward Peninsula in Alaska, but still retain an interest in
any future success Gammon may have on the Properties. Company management
continues to seek opportunities in acquiring and/or investing in properties
in Mexico and elsewhere that have a good potential in developing into a major
asset for the Company.
Completion
of the transaction contemplated in this release is subject to certain
conditions including, without limitation, completion of satisfactory due
diligence by Gammon with respect to the properties, execution of a definitive
purchase agreement and receipt of all necessary regulatory approvals.
This
press release contains forward-looking statements within the meaning of
applicable securities legislation. Such statements include, without
limitation, statements regarding the future results of operations,
performance and achievements of the Company, including potential property
acquisitions, the timing, content, cost and results of proposed work
programs, the discovery and delineation of mineral
deposits/resources/reserves, geological interpretations, proposed production
rates, potential mineral recovery processes and rates, business and financing
plans and business trends. Although the Company believes that such
statements are reasonable, it can give no assurances that such expectations will
prove to be correct. Forward-looking statements are typically identified
by words such as: believe, expect, anticipate, intend, estimate,
postulate and similar expressions, or are those, which, by their nature,
refer to future events. The Company cautions investors that
forward-looking statements by the Company are not guarantees of future
results or performance, and that actual results may differ materially from
those in forward-looking statements as a result of various factors,
including, but not limited to, variations in the nature, quality and quantity
of any mineral deposits that may be located, significant downward variations
in the market price of any mineral that may be produced, the Company's
inability to obtain any necessary permits, consents or authorizations
required for its activities, to produce minerals from its properties
successfully or profitability, to continue its projected growth, to raise the
necessary capital or to be fully able to implement its business
strategies. All of the Company's public disclosure filings may be
accessed via www.sedar.com and readers are urged to review these materials, including any
technical reports filed with respect to the Company's mineral
properties. This press release is not, and is not to be construed in any
way as, an offer to buy or sell securities in the United States.
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.
|
|