Mining’s old guard needs strong medicine
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TORONTO, ONTARIO–(Marketwire – Feb. 23, 2012) – Oremex Silver Inc. (“Oremex Silver” or the “Company”) (TSX VENTURE:OAG)(OTCQX:ORAGF)(FRANKFURT:OSI) reports that its wholly-owned Mexican subsidiary, Minera Mantos S. de R.L. de C.V.(“Minera Mantos”), entered into an agreement with Oremex Gold Inc. (“Oremex Gold”) to dispose of the Cerro del Oro (Golden Hill) project comprising of two concessions totaling 78.9 hectares in the Melchor Ocampo district, Zacatecas state, Mexico. The acquisition remains subject to approval by the TSX Venture Exchange.
Agreement Terms:
Oremex Gold Inc.’s (“Oremex Gold”) wholly-owned Mexican subsidiary, Minera Tres Diamantes, S. de R.L. de C.V., acquired a 100% interest in the Cerro del Oro concessions through an assignment agreement with Minera Mantos, in exchange for the cash payment of US $108,100 and a 1.5 % NSR in favour of Minera Mantos on future production from the project.
Relationship between Oremex Silver Inc. and Oremex Gold Inc.
Oremex Silver currently holds approximately 40% of the issued and outstanding share capital of Oremex Gold which was acquired during the spin-out of gold assets owned by Oremex Silver to Oremex Gold in 2011. In addition, certain directors and officers of Oremex Gold are also directors and officers of Oremex Silver. Due to the relationship between Oremex Gold and Oremex Silver, the transaction is a related party transaction within the meaning of applicable securities laws and a non-arm’s length transaction within the meaning of the policies of the TSX Venture Exchange.
About Oremex Silver Inc.
Oremex Silver Inc. is a Canadian company focusing on the exploration and development of silver projects along the highly productive mineralized belt in Mexico. The Company has a portfolio of silver projects including a mineral resource of 50.8 million ounces of silver at its Tejamen deposit. The Company’s projects are located in mining-friendly jurisdictions and the Management Team has successful track record of mine building in Mexico.
Cautionary Note Regarding Forward-Looking Statements
Certain statements contained in this news release may constitute forward-looking information, (collectively “forward-looking information”) within the meaning of Canadian securities laws. Forward-looking information may relate to this news release and other matters identified in Oremex’ public filings, anticipated events or results and can be identified by terminology such as “may”, “will”, “could”, “should”, “expect”, “plan”, “anticipate”, “believe”, “intend”, “estimate”, “projects”, “predict”, “potential”, “continue” or other similar expressions concerning matters that are not historical facts and include, but are not limited in any manner to, those with respect to capital and operating expenditures, economic conditions, availability of sufficient financing, receipt of approvals, satisfaction of closing conditions and any and all other timing, development, operational, financial, economic, legal, regulatory and/or political factors that may influence future events or conditions. Such forward-looking statements are based on a number of material factors and assumptions, including, but not limited in any manner, those disclosed in any other public filings of Oremex, and include the ultimate availability and final receipt of required approvals, sufficient working capital for development and operations, access to adequate services and supplies, availability of markets for products, commodity prices, foreign currency exchange rates, interest rates, access to capital markets and other sources of financing and associated cost of funds, availability of a qualified work force, availability of manufacturing equipment, no material changes to the tax and regulatory regime and the ultimate ability execute its business plan on economically favourable terms. While we consider these assumptions to be reasonable based on information currently available to us, they may prove to be incorrect. Actual results may vary from such forward-looking information for a variety of reasons, including but not limited to risks and uncertainties disclosed in other Oremex filings at www.sedar.com and other unforeseen events or circumstances. Other than as required by law, Oremex does not intend, and undertakes no obligation, to update any forward looking information to reflect, among other things, new information or future events.
Neither the TSX Venture nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture) accepts responsibility for the adequacy or accuracy of this release.
