Orex previously issued a press release announcing the signing of a letter of intent with respect to the Transaction on December 4, 2017. The Property is a skarn and epithermal vein hosted silver-copper-zinc district, located 155 kilometres northeast of the City of Durango, Mexico.
Orex President Gary Cope said: "We look forward to conducting a new exploration program on this promising silver-copper-zinc project in the prolific Silver Trend of north-central Mexico. This is another key step in the revitalization of Orex."
Terms of the Agreement
The Agreement, among other things, provides that Orex is required to make the following annual cash and share payments to Altiplano in order to exercise its option to acquire the Property:
On signing the Agreement – Issue 100,000 Orex common shares ("Orex Shares") and pay US$100,000.
On the first anniversary – Issue 200,000 Orex Shares and pay US$150,000.
On the second anniversary – Issue 300,000 Orex Shares and pay US$200,000.
On the third anniversary – Issue 400,000 Orex Shares and pay US$550,000.
On the fourth anniversary – Pay US$1.5 million (of which 30% can be issued in Orex Shares).
In order to acquire the Property, Orex will also have to satisfy work commitments on the Property for the first two years of US$400,000 in Year 1 and US$600,000 in Year 2.
Project Description
The Property has undergone several phases of exploration, with multiple targets yet to be explored. Mineral concessions cover 2,825 hectares and include the full extent of the known mineralization. Old mine workings and mineralized showings wrap around a quartz-feldspar-porphyry intrusive. Diamond drilling of 62 holes from 2000-2016 total approximately 16,400 metres.
Ben Whiting, P.Geo., Vice President of Exploration for Orex, is a Qualified Person as defined in NI 43-101 and takes responsibility for the technical disclosure contained within this news release.
