Business
Uruguay Mineral Exploration Inc.: Agreement with DelcoSur S.A.
Uruguay Mineral Exploration Inc.: Agreement with DelcoSur S.A..
About this update from Orosur Mining Inc.
[{"type":"text","content":"\n\n\n\nLONDON, March 22 /CNW/ - Uruguay Mineral Exploration Inc. (the "Company"\nor "UME") today announces that it has signed a Farm-in Agreement (the\n"Agreement") giving it the option to acquire a 100% interest in exploration\npermits owned by DelcoSur S.A. ("DelcoSur"), a Uruguayan-based mineral\nexploration company. DelcoSur's permits cover 51,668 hectares (516.6 sq km) in\nmineral tenements along the Florida Greenstone Belt ("FGB") of Southern\nUruguay.\n\n\nUpon execution, UME will receive exploration information on the tenements\nand will pay DelcoSur USD 120,000 plus 20,000 non-transferable warrants to\npurchase common shares of UME, exercisable for a period of two years from the\ndate of issuance. UME is then required to spend USD 1,050,000 on exploration\nover three years to exercise its option to acquire 100% of the Delcosur\ntenements. Upon exercising this option UME will grant DelcoSur a 1% Net\nSmelter Return on metal sales resulting from production sourced from the\nDelcoSur tenements. Additionally, in the event that UME develops a mining\noperation on the tenements, it will issue DelcoSur or its nominees a further\n350,000 non transferable warrants to purchase Common Shares of UME,\nexercisable for a period of two years from the date of issuance.\n\n\nThe issue of warrants under the Agreement is subject to the approval of\nthe TSXV. All warrants will be priced at a 20% premium over the 60 day average\ntrading price prior to issuance.\n\n\nAs part of the agreement, UME will also gain access to a significant\nhistoric geological database containing additional information covering most\nof UME's existing projects within the FGB. This database contains several\nthousand metres of drill core from UME's Chamizo, Mahoma, and Cruzera\nproperties. This is a timely acquisition as follow up drilling on a number of\nthese UME properties is planned to commence within the coming months. In\naddition to the project specific data, the historical data also includes\nregional scale information important to understanding the key gold districts\nof the FGB.\n\n\nDavid Fowler, Chief Executive Officer of Uruguay Mineral Exploration\ncommented: "The acquisition of the DelcoSur tenements and geological\ninformation will allow UME to accelerate its plans and better target its\nexplo...