Conquistador Mines Ltd -
Conquistador to sell interet in Colombian program
Conquistador Mines Ltd CMG
Shares issued 43,663,907 2000-07-25 close $0.13
Wednesday Jul 26 2000
Mr. Raul Madrid reports
The company has reached an agreement to sell a 7-per-cent interest in the Colombian regional exploration program to AngloGold South America Ltd. for $250,000 (U.S.). Conquistador and AngloGold have agreed to modify their heads of agreement dated Nov. 5, 1999, to reflect this change. Under this amendment, AngloGold has the right to acquire an additional 7 per cent of the regional exploration program by paying the $250,000 (U.S.) within 60 days. AngloGold must also complete the $2.5-million (U.S.) exploration financing by Nov. 5, 2004, to earn a total of 57 per cent. AngloGold completed the first six-month financing period by providing $250,000 (U.S.) through May 31, 2000, and, is presently financing the subsequent six-month program and must finance $500,000 (U.S.) by May 31, 2001.
AngloGold has granted Conquistador the option to repurchase the 7-per-cent interest by paying AngloGold $750,000 (U.S.) before the end of three years from the date of this amendment to the agreement or 60 days from the completion of AngloGold's $2.5 million (U.S.) financing of the Regional project, whichever is earlier. By exercising this repurchase option, Conquistador Mines would bring its interest back up to 50 per cent of the regional exploration program.
Conquistador will use the $250,000 (U.S.) from the sale to meet current corporate obligations and to provide working capital.
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