Geo Minerals Amends Terms of Lease Option Agreement of Silver Bell West in Arizona and Terminates Lease Option Agreement of Copp
July 06 2011 - 8:00AM
Marketwired
GEO MINERALS LTD. (TSX VENTURE: GM)(FRANKFURT: 8G3) ("GEO" or the
"Company") is pleased to announce that it has successfully amended
the terms of the Letter of Intent ("Agreement") with Eurasian
Minerals Inc. ("EMX") through is wholly owned subsidiary Bronco
Creek Exploration Inc. ("BCE"), for the Silver Bell West property,
to settle certain amounts owed to BCE pursuant to the Silver Bell
Agreement.
As reported by the Company on or around August 28, 2009, the
Silver Bell West property, located about 30 miles northwest of
Tucson, consists of 188 mining claims on more than 3,700 acres
immediately adjacent to Asarco's active Silver Bell Mine.
Concurrently, with the Silver Bell West Agreement, the Company
executed a second letter of intent ("Letter") with BCE for the
Copper Springs property, which is located about 90 miles east of
Phoenix and consists of 216 mining claims and 640 acres of fee land
for a total of more than 5,000 acres in the Globe-Miami mining
district.
Under the terms of the Silver Bell Agreement, the Company had
agreed to incur $2,000,000 in work expenditures, pay cumulative
advance royalty payments of $675,000, issue a total of 800,000
commons shares over the 5-year term of the lease-option agreement
as well as grant a royalty of 2.5% with a provision to buy back
0.50% for $1 million by the seventh anniversary.
The terms of the Silver Bell West Agreement have been amended
such that the monies due and payable to BCE on the 1st anniversary
of the Agreement for advanced royalty payments of $50,000 and
monies due under the property maintenance clause of the Agreement
and reimbursement of completed work programs totaling $86,183.87
shall be paid by the issuance of 1,231,198 common shares in the
capital of the Company. If the Company elects to terminate its
interest in the Silver Bell property, the Company will return the
property and any additional ground to BCE with a minimum of 3
months (amended from one year) maintenance fees for federal
unpatented mining claims.
The Company also reports that, as of June 4, 2011, it has
decided not to proceed with the terms of the Copper Springs letter
of intent ("Letter"). Under the terms of the Copper Springs Letter,
the Company can be released by BCE for reimbursement of funds
expended during the term of the Letter. To date, monies due and
payable to BCE under the property maintenance clause of the Letter
in addition to reimbursement of funds expended for completed work
total $64,508.06, which shall be paid by the issuance of 921,544
common shares in the capital of the Company.
These transactions are subject to final acceptance by the TSX
Venture Exchange.
Geo Minerals is a junior mineral exploration company actively
seeking mineral opportunities for the benefit of all our
stakeholders. For further information we invite you to visit us at
www.geominerals.ca.
Eurasian Minerals Inc. (TSX VENTURE: EMX) is a Canadian-based
junior exploration company with properties in Haiti, Turkey,
Europe, the United States, Kyrgyz Republic, and
Australia/Asia-Pacific.
ON BEHALF OF THE BOARD
Michael England, President, Geo Minerals Ltd.
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.
Contacts: Geo Minerals Ltd. Michael England President
1-604-683-3995 or Toll Free: 1-888-945-4770 1-604-683-3988 (FAX)
www.geominerals.ca
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