TORONTO, ONTARIO--(Marketwired - July 2, 2013) -
NOT FOR DISTRIBUTION TO UNITED STATES WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.
Oremex Silver Inc. ("Oremex" or the "Company") (TSX VENTURE:OAG) (ORAGF) (OSI.F) announces that its wholly-owned Mexican subsidiary, Minera Mantos S. de R.L. de C.V.("Minera Mantos"), has entered into an agreement (the "Agreement") with Minera Cuicuilco S.A. de C.V. ("Cuicuilco") (an indirect Mexican subsidiary of Freeport-McMoRan Copper & Gold Inc.) where Cuicuilco has the right to acquire a 100% interest in the El Sol property in Durango State, Mexico for cash payments of USD $2,000,000.00 over a (3) three year period.
The El Sol project, including mineral rights and surface rights, is 100% owned by Minera Mantos. Oremex Silver considers El Sol to be a non-core asset of the company. El Sol is located in Durango State, Mexico and approximately 1 km northwest (and along trend) of the Cerro Las Minitas silver and base metal deposit. The property is at approximately 2,200 metres in elevation at the eastern limit of the Sierra Madre Occidental and has access year round. The high grade silver‐lead‐zinc system on the property has seen past production, but the property is at an early grass roots stage of exploration and development, and has no indicated resources.
Cuicuilco has an option ("Option") to acquire 100% of the property by making the following payments:
- After ratification of the agreement, USD $150,000.00
- On or before the 1st anniversary of the ratification, USD $400,000.00
- On or before the 2nd anniversary of the ratification, USD $600,000.00
- On or before the 3rd anniversary of the ratification, USD $850,000.00
The Option grants Cuicuilco the right to acquire the property at anytime between the ratification of the Agreement and the 3rd anniversary of the ratification. In addition, to keep the Option viable, Cuicuilco must pay any concession maintenance fees that come due.
Mr. John Carlesso, Executive Chairman of Oremex Silver stated: "El Sol represents the first milestone in the Company's strategy to demonstrate and realize tangible value for its non-core assets. The Company is committed to a strategy of unlocking and consolidating the financial value of these assets. Indicative of this strategy, this agreement demonstrates the potential of the El Sol project and management's ability to strengthen its financial position in a manner that is non-dilutive to its capital structure."
About Oremex Silver Inc.
Oremex is a Canadian company focusing on the exploration and development of silver projects along the highly productive mineralized belt in Mexico. The Company has a portfolio of silver projects including a mineral resource of 50.8 million ounces of silver at its Tejamen deposit. The Company's projects are located in mining-friendly jurisdictions and the management team has successful track record of mine- building in Mexico.
Cautionary Note Regarding Forward-Looking Statements
Certain statements contained in this news release may constitute forward-looking information, (collectively "forward-looking information") within the meaning of Canadian securities laws. Forward-looking information may relate to this news release and other matters identified in Oremex's public filings, anticipated events or results and can be identified by terminology such as "may", "will", "would", "could", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "projects", "predict", "potential", "continue" or other similar expressions concerning matters that are not historical facts and include, but are not limited in any manner to, those with respect to entering into definitive and binding agreements with respect to financings, capital and operating expenditures, economic conditions, availability of sufficient financing, receipt of approvals, the receipt of exemptive relief from securities requirements, satisfaction of closing conditions and any and all other timing, development, operational, financial, economic, legal, regulatory and/or political factors that may influence future events or conditions. Such forward-looking statements are based on a number of material factors and assumptions, including, but not limited in any manner, those disclosed in any other public filings of Oremex, and include the ultimate availability and final receipt of required approvals and/or exemptive relief, the decision of third parties to consummate definitive agreements with Oremex, sufficient working capital for development and operations, access to adequate services and supplies, availability of markets for products, commodity prices, foreign currency exchange rates, interest rates, access to capital markets and other sources of financing and associated cost of funds, availability of a qualified work force, availability of manufacturing equipment, no material changes to the tax and regulatory regime and the ultimate ability to execute its business plan on economically favourable terms. While we consider these assumptions to be reasonable based on information currently available to us, they may prove to be incorrect. Actual results may vary from such forward-looking information for a variety of reasons, including but not limited to risks and uncertainties disclosed in other Oremex filings at www.sedar.com and other unforeseen events or circumstances. Other than as required by law, Oremex does not intend, and undertakes no obligation, to update any forward looking information to reflect, among other things, new information or future events.