Business
Almadex Sells El Encuentro Project to McEwen Mining
VANCOUVER, BC--(Marketwired - May 02, 2016) - Almadex Minerals Limited ("Almadex" or the "Company") (TSX VENTURE: AMZ) (OTCQB: AXDDF) is pleased to announce tha
About this update from Mustang Minerals Limited
[{"type":"text","content":"VANCOUVER, BC--(Marketwired - May 02, 2016) - Almadex Minerals Limited (\"Almadex\" or the \"Company\") (TSX VENTURE: AMZ) (OTCQB: AXDDF) is pleased to announce that it has sold its El Encuentro project to McEwen Mining Inc. (\"McEwen\") for US$250,000 and a 2.0% NSR royalty. The El Encuentro project is located approximately 10 kilometres from McEwen's operating El Gallo gold/silver mine in Sinaloa State, Mexico. Prior to its spinout to Almadex in 2015, Almaden Minerals Ltd. held this project since the early 1990s. The claims making up the project cover an area of hydrothermal alteration and gold/silver mineralization. Significant gold and silver surface sample results were returned from trench sampling in 1996. Almadex Chairman, J. Duane Poliquin commented, \"I have been involved with this project since the early 1990s and believe very strongly in its mineral potential. This sale to McEwen is beneficial to Almadex as it puts US$250,000 in the treasury immediately while preserving upside for shareholders through the creation of a new NSR royalty. Given McEwen's presence in the area, they are best placed to develop these assets in the near term.\" The sale includes provisions for advance annual royalty payments in an amount up to US$100,000 per year commencing January 1, 2021, in the event that commercial production does not occur prior to that date. Almadex also has the right to re-purchase the claims if, among other things, McEwen chooses to cede them in the future. The El Encuentro project consists of six claims, two of which were indirectly held by Almadex and were sold to McEwen outright for cash and the NSR royalty, and four of which were optioned from an underlying owner. These latter four claims are currently subject to litigation, and, as a term of the purchase, McEwen has assumed the litigation in respect of these claims. The cash payment relating to these four claims was made on closing. Pending a favourable outcome to the litigation, the 2.0% NSR royalty will also be payable on these claims. Morgan Poliquin, Ph.D., P.Eng., the President and CEO of Almadex, is a Qualified Person as defined by National Instrument 43-101 (\"NI 43-101\") and has reviewed and approved the contents of this news release. About Almadex Almadex Minerals Limited is an exploration company that holds a large mineral portfolio ...