VANCOUVER, June 24, 2015 /CNW/ - Gitennes
Exploration Inc. ("Gitennes or the Company", GIT-TSXV)
announces that certain payments due under the terms of the amended
Share Sale and Mining Agreement (the "Agreement") as announced on
November 17, 2014 for the sale of the
40% interest in the Urumalqui Silver Project to AndeanGold Ltd.
have been converted to a $475,000
Convertible Debenture.
The Convertible Debenture ("CD") has a three year term, a coupon
of 6% per annum and a conversion price of six cents per AndeanGold share, at Gitennes'
option. The CD also contains a provision that AndeanGold must
remit to Gitennes 12% of any funds AndeanGold raises through equity
or debt to pay down the principal of the CD.
In addition to the CD Gitennes retains a 1.5% Net Smelter
Royalty on all metals produced from Urumalqui. The NSR will
be for the life of the Project, has no cap on payments, no buyback
and no first right of refusal;
AndeanGold owns 100% of Urumalqui subject to Gitennes' NSR.
About Urumalqui:
Urumalqui is an advanced silver-gold project located
approximately 70 kilometres by road east of the port city of
Trujillo, Perú. Gitennes acquired Urumalqui in 2003 in a
joint venture and in June 2005 the
joint venture was terminated and Gitennes assumed 100% control of
the Project. Exploration activities between 2003 and 2008
included three core drilling campaigns totalling 47 holes. In
2010 the project was optioned to AndeanGold Ltd whom has completed
two diamond drilling campaigns (44 holes totalling 7,124
metres). In November 2011 an
Initial Resources Estimate for the Urumalqui Vein was prepared by
MQes, Inc. The technical report supporting the estimate is
available under both AndeanGold and Gitennes' company profiles at
www.sedar.com.
GITENNES EXPLORATION INC.
Ken Booth,
President
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.
This press release does not constitute an offer to sell or a
solicitation to buy any of the securities of Gitennes in
the United States.
SOURCE Gitennes Exploration Inc.