Business
Virgin Metals Acquires Ownership of Cuatro Hermanos Property
Virgin Metals Acquires Ownership of Cuatro Hermanos Property.
About this update from Minera Alamos Inc.
[{"type":"text","content":"\n\n\n\nTSX\n\n\nSymbol: VGM\n\n\nShares Outstanding: 77,153,553\n\n\nTORONTO, May 18 /CNW Telbec/ - Virgin Metals Inc. (TSX: VGM) ("Virgin\nMetals" or the "Company") reports that it has signed a binding letter\nagreement (the "Purchase Agreement") with Morgain Minerals Inc. ("Morgain") to\nacquire 100% ownership of the Cuatro Hermanos copper/molybdenum property\nlocated in State of Sonora, Mexico, including the 3% NSR. Under the option\nagreement ("Option Agreement") for the Cuatro Hermanos property, which was\nassigned to Virgin Metals in April 2006, Virgin Metals had the right to earn a\n100% interest in the Cuatro Hermanos property by commencing commercial\nproduction on the property, upon which the property would become subject to a\n3% NSR or an annual payment of US$150,000, whichever was the greater. Under\nthe terms of the Purchase Agreement, Morgain has agreed to transfer 100%\nownership of the Cuatro Hermanos property to Virgin Metals and eliminate all\nobligations under the Option Agreement in exchange for a payment of\nUS$2.5 million from Virgin Metals to Morgain and the issuance of\n500,000 common shares of Virgin Metals to Morgain.\n\n\nThe acquisition, which is scheduled to close no later than June 30, 2007,\nunless otherwise agreed to by the parties, is subject to the acceptance by the\nTSX and the TSX Venture Exchange.\n\n\nCuatro Hermanos is a copper/molybdenum porphyry exploration target that\nhas been the subject of a number of drill campaigns over the past four\ndecades. Prior surface mapping and drilling have outlined porphyry\nmineralization over an area of about 4.5 square kilometers. The Company\nexpects to mobilize a drill to the property within the next few weeks.\n\n\nVirgin Metals is a junior exploration and development company; its\nprojects include two copper/molybdenum porphyry properties in Sonora, northern\nMexico. One of these, Los Verdes, is expected to evolve rapidly towards\nproduction while the other, Cuatro Hermanos, is expected to be the focus of\nexpanded exploration effort.\n\n\nFORWARD-LOOKING STATEMENTS\n\n\nThis press release includes certain "forward-looking information" within\nthe meaning of the Securities Act (Ontario), including, but not limited to,\nstatements as to timing and extent of exploration programs and the\nav...