Animas Signs Definitive Agreement With GoGold Resources and Increases Purchase Price
December 04 2013 - 5:46PM
Marketwired
Animas Signs Definitive Agreement With GoGold Resources and
Increases Purchase Price
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Dec 4, 2013) -
Animas Resources Ltd. (TSX-VENTURE:ANI) has now signed the
Definitive Agreement with GoGold Resources Inc. ("GoGold") to sell
the Santa Gertrudis Gold project to GoGold.
The purchase price was also increased due to the receipt of a
competing bid which was matched by GoGold. The purchase price is
now as follows:
- $250,000 deposit payable upon signing of the definitive
agreement (received);
- $4,750,000 payable on closing;
- A 3% net smelter returns royalty for gold and silver and a 2%
net smelter returns royalty for all other metals on the Santa
Gertrudis project (the "NSR"). The NSR will be calculated and paid
before any tax, VAT, or withholding tax. GoGold will also have the
right to purchase one-third of the NSR at any time for $5 million;
and,
- Starting January 1, 2017, a minimum advance royalty of $250,000
annually for a period of 4 years in the event that the mine is not
in production. These advance royalty payments will be credited
against any payments of the NSR.
GoGold is a TSX-listed Canadian-based mineral resource company
currently putting the Parrall Silver-Gold tailings project into
production in Mexico, and capitalized with approximately $50
million in available cash.
Mr. Mark T. Brown, President and CEO, noted that "GoGold had the
right to match any competing offer received by Animas and an
unsolicited offer was received shortly after the transaction was
announced, and it was matched, and slightly improved, by the GoGold
team."
The Definitive Agreement is subject to certain conditions being
met, including shareholder approval and TSX Venture Exchange
approval.
The Santa Gertrudis Gold Project (the "SG Property"), located
180 km north of Hermosillo, Sonora, Mexico, was discovered by
Phelps Dodge in 1986 and advanced to open pit heap leach production
in 1991. From May 1991 to October 2000, the Santa Gertrudis
Property produced 564,000 ounces of gold at an average grade of
2.13 grams per tonne. Phelps Dodge sold part of the Santa Gertrudis
Property to Campbell Resources in 1994 for US$10 million. Campbell
later ceased mining and processing activity due to low gold prices
during the late 1990's and settled some outstanding debts by
assigning several core area concessions, including the un-mined
Cristina deposit, to certain local Mexican contractors. The Amelia
Mine, also on Animas' project area, was estimated to have
historically produced over 1 million tonnes at 2.88g Au/tonne.
This news release was prepared by Company management, who take
full responsibility for its content. The technical disclosure in
this press release has been reviewed by John R. Wilson, a Qualified
Person as defined by National Instrument 43-101 of the Canadian
Securities Administrators, and a director of Animas.
For additional information, contact Animas Resources Ltd. at
604-687-6197, or you may register to receive future news releases
at www.animasresources.com.
Mark T. Brown, President & CEO
Neither 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 contains "forward-looking information"
which may include, but is not limited to, statements with respect
to drilling plans, timing of our planned NI 43-101 resource report,
timing of assays, resource estimates, projections, our planned
exploration and drilling programs, the availability of future
financing for exploration and other plans, projections, estimates
and expectations. Such forward-looking statements reflect our
current views with respect to future events and are subject to
certain risks, uncertainties and assumptions, including, the risks
and uncertainties outlined in our most recent financial statements
and reports and registration statement filed with the Canadian
securities administrators (available at www.sedar.com). Should one
or more of these risks or uncertainties materialize, or should
underlying assumptions prove incorrect, actual results may vary
materially from those anticipated, believed, estimated or
expected.
Animas Resources Ltd.Mark T. BrownPresident &
CEO604-687-6197www.animasresources.com
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