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Minera Alamos Announces Definitive Agreements Executed for Assignment of Guadalupe De Los Reyes Gold Project Option to Epower Metals
Toronto, Ontario and Vancouver, British Columbia--(Newsfile Corp. - June 26, 2019) - Minera ...
About this update from Minera Alamos Inc.
[{"type":"text","content":"Minera Alamos Announces Definitive Agreements Executed for Assignment of Guadalupe De Los Reyes Gold Project Option to Epower MetalsToronto, Ontario and Vancouver, British Columbia--(Newsfile Corp. - June 26, 2019) - Minera Alamos Inc. (TSXV: MAI) (\"Minera Alamos\" or the \"Company\") is pleased to announced that it has entered into a definitive assignment and assumption agreement (the \"Assignment Agreement\"), dated June 25th, 2019, with ePower Metals Inc. (\"ePower\"), Vista Gold Corp. (\"Vista Gold\"), and the Mexican subsidiaries of each of ePower and the Company, pursuant to which the Company will assign the rights to an option (the \"Transaction\") to earn a 100% interest in the Guadalupe de los Reyes (\"Guadalupe\") gold project in Sinaloa State, Mexico. Minera Alamos currently has the right to acquire a 100% interest in Guadalupe, pursuant to an option agreement entered into with Vista Gold. The Assignment Agreement replaces the previously announced binding letter of intent entered into between the Company and ePower effective April 22, 2019.Terms of the TransactionTo acquire the Company's interest in Guadalupe, ePower must:Complete a cash payment of US$1,500,000 (\"Deposit\") to Minera Alamos, to reimburse the cost of an option payment made to Vista Gold on April 23, 2019 (the \"April Payment\"). Assume the Company's remaining payments of US$3,000,000 in favour of Vista Gold (collectively, the \"Payments\"), as follows:US$1,500,000 due October 27th, 2019; and  US$1,500,000 on the earlier of October 27th, 2021 or a production decision.Issue to Minera Alamos 9,450,000 post-Consolidation (as defined below) common shares and 3,350,000 common share purchase warrants entitling Minera Alamos to acquire an equal number of post-Consolidation common shares at a price $0.50 per share for a period of twenty-four months.Concurrently with the entering into of the Assignment Agreement, the ePower has entered into a governance and investor rights agreement (the \"Governance Agreement\") with Minera Alamos. The Governance Agreement, provides, among other things that Minera Alamos will receive the right to: (i) upon completion of the Transaction, appoint one director to the board of ePower for so long as the Minera Alamos holds at least 5% of ePower's outstanding common shares, and (ii) to participate in future...