Mr. Christian Scovenna reports
OREMEX SILVER ENTERS INTO DISPOSITION AGREEMENT FOR CERRO DEL ORO GOLD PROJECT
Oremex Silver Inc.'s wholly owned Mexican subsidiary, Minera Mantos S de RL de CV, has entered into an agreement with Oremex Gold Inc. to dispose of the Cerro del Oro (Golden Hill) project comprising two concessions totalling 78.9 hectares in the Melchor Ocampo district, Zacatecas state, Mexico. The acquisition remains subject to approval by the TSX Venture Exchange.
Agreement terms
Oremex Gold's wholly owned Mexican subsidiary, Minera Tres Diamantes, S de RL de CV, acquired a 100-per-cent interest in the Cerro del Oro concessions through an assignment agreement with Minera Mantos, in exchange for the cash payment of $108,100 (U.S.) and a 1.5-per-cent net smelter return royalty in favour of Minera Mantos on future production from the project.
Relationship between Oremex Silver and Oremex Gold
Oremex Silver currently holds approximately 40 per cent of the issued and outstanding share capital of Oremex Gold which was acquired during the spinout of gold assets owned by Oremex Silver to Oremex Gold in 2011. In addition, certain directors and officers of Oremex Gold are also directors and officers of Oremex Silver. Due to the relationship between Oremex Gold and Oremex Silver, the transaction is a related-party transaction within the meaning of applicable securities laws and a non-arm's-length transaction within the meaning of the policies of the TSX Venture Exchange.
We seek Safe Harbor.
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