AndeanGold Signs MOU for 100% of Urumalqui
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov 21, 2014) - AndeanGold Ltd. ("the Company" or "AndeanGold") (TSX VENTURE:AAU)(LMA:AAU) and Gitennes Exploration Inc. have signed a binding Memorandum of Understanding ("MOU") to amend the pre-existing Share Sale and Mining Agreement (the "Agreement") which gives AndeanGold the right to purchase the remaining 40% interest in the Urumalqui Silver-Gold Project. The amendment to the Agreement is expected to be signed on or before December 19, 2014 and once signed AndeanGold will have purchased the 40% interest in Urumalqui, giving AndeanGold full 100% ownership.
Under the MOU, AndeanGold and Gitennes have agreed to amend the Agreement as follows:
| 1) | AndeanGold will grant to Gitennes a 1.5% Net Smelter Royalty on all metals produced from Urumalqui; | |
| 2) | AndeanGold to make the following payments (all in CAD$): | |
| a) | $125,000 on or before December 19, 2014, if this payment is not made the Agreement will terminate immediately; | |
| b) | $150,000 on or before February 15, $150,000 April 19, and $175,000 on or before June 21, 2015; | |
| c) | If there are any amounts outstanding under b) above by June 21, 2015 then those will become a Unsecured Convertible Debenture with a three year term, a coupon of 6% per annum and a conversion of CAD$ 0.06 per AndeanGold share. | |
About AndeanGold Ltd:
AndeanGold Ltd. is engaged in the acquisition, exploration and potential development of metals properties, principally in Peru and Ecuador. The focus of the Company's exploration activities is presently in advancing its Urumalqui Project. In Ecuador, the Company's activities have been limited to maintaining its three properties. In September 2012, the Company received authorization from the MRNNR to renew exploration programs on its Ecuadorian Curiplaya Project.
Please refer to AndeanGold's website at www.andeangoldltd.com for further information on the Company's projects and activities.
On Behalf of the Board of Directors of ANDEANGOLD LTD.
Alexander Peña Böttcher, Interim President and CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contact
Corporate Office: AndeanGold Ltd.
Alexander Pena
(51) 94020.8400
alexander@andeangoldltd.com
www.andeangoldltd.com
Investor Relations:
Jamie Mathers
778-879-5084
jsmathers6@gmail.com