Orex Minerals Inc. (Orex) has entered into an option agreement with Exploraciones del Altiplano, S.A. de C.V. (Altiplano) to acquire a 100% interest in the San Luis del Cordero Project in Durango, Mexico. The property is a skarn and epithermal vein hosted silver-copper-zinc district, located 155 km northeast of the City of Durango, Mexico.
Orex's President, Gary Cope said: "We look forward to conducting a new exploration programme on this promising silver-copper-zinc project in the prolific Silver Trend of north-central Mexico. This is another key step in the revitalisation of Orex."
Terms of the Agreement
The agreement states 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 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).
Additionally, 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.