Gitennes transaction with Cambior closes
Gitennes Exploration Inc GIT
Shares issued 26,255,831 Feb 15 close $0.20
Mon 15 Feb 99 News Release
Also Cambior Inc (CBJ)
Mr. Jerry Blackwell reports
Gitennes Exploration Inc. has closed the transaction with Cambior Inc. to
sell a 100 per cent interest in Compania Minera Kori Pampa S.A., a company
registered in Peru. Kori Pampa is the beneficial owner of mineral rights to
a number of properties in Peru, the most important being nine concessions
comprising the Virgen property.
The company's subsidiary, Castle Keep Ltd., has now received the initial
payment of $2,500,000 (U.S.) ($3.72-million (Canadian)). To complete the
sale, Cambior must make an additional payment of $2,500,000 (U.S.) within
12 months, and a further payment of $2,000,000 (U.S.) within 24 months of
closing, If Cambior elects to not make the second or third payment, the
option agreement will be terminated and the properties will revert to
Gitennes.
In addition to the $7-million (U.S.) total cash payments, the company's
subsidiary will be entitled to participation payments once mining
production exceeds 400,000 ounces of gold. These payments are based upon a
3-1/4 per cent net smelter return royalty for gold production, a 2 per cent
nsr for silver production and a 1 per cent nsr for all other metals or
minerals produced from the property. Once $13,000,000 (U.S.) in
participation payments are made, the gold nsr is to be reduced to 2 per
cent for the balance of continuing mining operations.
Gitennes is now in a position to resume its objective of being an active
explorer. In Peru, a new company, Compania Minera Kori Playa S.A., has been
established to hold Gitennes' interest in the Azul property being explored
by the joint venture formed between Gitennes and Navigator Exploration
Corp. Exploration work will begin at Azul this quarter. The company is
evaluating a number of additional promising properties in Peru as well as
in other countries in South and Central America. Further acquisitions are
likely.
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