AuEx signs Joint Venture Agreement on Trinity Silver project
NR 05-6
Fri Sep 23, 2005
AuEx Ventures, Inc. (AuEx) has signed an Exploration and Development Agreement with Piedmont Mining Company, Inc. (PIED) on the Trinity Silver property in Pershing County, Nevada. This property consists of 41 unpatented mining claims and 5,000 acres of fee land, about 5,800 acres in total. It is located about 25 miles northwest of the Rochester Silver Mine, one of the largest silver mines in the US and about 10 miles southeast of the Seven Troughs gold district. AuEx leased this property package from Newmont Mining Corporation in August 2005 (see NR05-4 August 11, 2005).
Piedmont paid $10,000 in cash to AuEx on signing the Agreement. Piedmont must reimburse AuEX $10,995 for claims fees and expend at least $75,000 on exploration during the first year. In the second year, Piedmont must expend a further $125,000 on exploration. A total of $1,000,000 must be expended on exploration and development within the first three years to earn a 25% interest in the property and the project. Piedmont may then elect to expend an additional $1,000,000 prior to the 5th anniversary of the effective date of the Agreement to earn a 51% interest. At that point, Piedmont may elect to enter into a joint venture with AuEx or expend a further $2,000,000 on exploration and development to earn a 60% interest in the project and enter into a joint venture with AuEx at that point. Prior to the 3rd anniversary, the entire property package may be purchased from Newmont for $500,000, or for $1,000,000 after that date, subject to certain clawback provisions by Newmont and a sliding scale royalty that increases to 5% at silver prices above $10 per ounce. This royalty may be reduced by one percentage point under certain conditions. Piedmont may terminate its Agreement with AuEx on 30 days notice.
AuEx Ventures, Inc. is a new, Nevada focused, precious metals Exploration Company that completed its Initial Public Offering on June 28, 2005 and began trading on June 30, 2005. AuEx has a current portfolio of 12 exploration projects in Nevada and controls over 40,000 acres of unpatented claims and fee land. The company applies the extensive Nevada exploration experience and high-end technical skills of its founders to search for and acquire new precious metal exploration projects that are then offered for joint venture.
AuEx Ventures, Inc.
By: Ronald L. Parratt, President and CEO
Contact:
Deborah Thiel -- Manager Investor Relations
Telephone: 604-541-9655
auexventures.com |
