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Gitennes Options Urumalqui Project
Gitennes Options Urumalqui Project
About this update from Rev Exploration Corp.
[{"type":"text","content":"\n\n\n\nFeb. 1, 2010 (Canada NewsWire Group) -- VANCOUVER, Feb. 1 /CNW/ -- Gitennes Exploration Inc. (TSXV-GIT) is pleased to announce that it has signed a Memorandum of Understanding (the \"MOU\") with AndeanGold Ltd. (TSXV-AAU) whereby Gitennes has granted to AndeanGold the right to earn a 60% interest in Gitennes' Urumalqui Project, a silver-gold property in Peru.Pursuant to the MOU, AndeanGold's Peruvian subsidiary, PeruGold Resources S.A.C. (\"PGR\"), will sign an Option and Mining Assignment Agreement with Gitennes' Peruvian subsidiary, Minera Corimalqui S.A. (\"MC\"), the concessions titleholder. In addition, Gitennes and AndeanGold will sign a Parent Company Agreement, and the Peruvian subsidiaries will sign a Partners' Agreement, which will principally cover the formation of a new Peruvian company (\"Newco\") that will be responsible for the Project's JV activities once PGR has fulfilled all its earn-in requirements under the Option and Mining Assignment Agreement. PGR will be entitled to exercise its option and earn a sixty (60) percent interest in Newco by:a) Expending $3,000,000 of qualifying expenditures on the Project over afour (4) year term (the \"Term\"),b) Completing 3,000 metres of drilling by the end of the second year ofthe Term and 7,000 metres of cumulative drilling by the end of thethird year of the Term, andc) AndeanGold issuing Gitennes 800,000 shares in four tranches of 200,000shares. The first tranche is to be issued within 5 days of delivery ofthe related agreements in Peru, with the remaining tranches upon thefirst, second and third year anniversaries of the agreements.Except for the first payment, Gitennes may elect to receive cash inlieu of shares, with the amount not to exceed $25,000, $50,000 and$100,000 with respect to the first, second and third year anniversarydate payments, respectively. If the market value of the shares on therespective payment dates exceeds the maximum cash payment amount onsuch date, the difference will be paid in equivalent shares.Upon PGR meeting the terms and exercising its option, title will be transferred to Newco. AndeanGold will earn its 60% interest when all of the specified expenditures, drilling and share issuances terms are met.The transaction is subject to receipt of all required regulatory approvals, including acceptance by the TSX Venture Exchange.Urumalqui ...