Geologix Delivers Final Arian Silver Tepal Payment
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 02/24/11 -- Geologix Explorations Inc. (TSX: GIX)(FRANKFURT: GF6)(BERLIN: GF6)(MUNICH: GF6)(STUTTGART: GF6) (the 'Company') is pleased to announce that in accordance with the Company's Option to Purchase Agreement (the 'Agreement') with Arian Silver Corporation ('Arian') for the purchase of a 100% interest in the Tepal Gold-Copper Project in Michoacan, Mexico, the Company has delivered US$1,023,000 cash (including IVA) and 1,089,318 common shares of the Company to Arian as consideration for the final payment obligations under the terms of the Agreement between Geologix and Arian. The shares issued to Arian are subject to a four month restricted sale period.
Further to the terms of the Agreement, the Company has assumed the remaining underlying property option agreement obligations due to the vendor, including a further US$2.3 million payable to the vendor before June 6, 2011 (see Geologix news releases dated January 19, 2010 and November 5, 2009 for more information). Upon completion of this remaining payment, Geologix will own a 100% interest in the Tepal claims under this option agreement, subject to a 2.5% net smelter return royalty.
Dunham Craig, President & CEO stated, 'With this final payment delivered and the purchase agreement obligations to Arian now fulfilled, the Company can focus its efforts on advancing this flagship project through ongoing exploration and development programs. With the proceeds from the Company's recently announced CDN $20.0 million bought-deal financing, the Company expects to be adequately financed to complete the underlying vendor obligations to acquire 100% of this important asset before June 6, 2011.'
Geologix Explorations Inc. is a mineral exploration company focused on acquiring, exploring and developing mineral resource opportunities with the potential to host world class mineral deposits. The Company's primary focus is the Tepal Gold-Copper Porphyry Project in Michoacan State, Mexico, where the Company has completed a Preliminary Economic Assessment study ('PEA') of the existing resource and is continuing to aggressively explore for additional gold and copper mineralization in an effort to expand the size of the resource and scale of the possible future mining operation.
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Contacts:
Geologix Explorations Inc.
Jeffrey Wilson, V.P. Corporate Communications
(604) 694-1742
Toll Free in Canada & USA 1(888) 694-1742
jwilson@geologix.ca
Geologix Explorations Inc.
Dunham Craig
President & CEO
(604) 694-1742
dcraig@geologix.ca
www.geologix.ca