Mr. Duane Poliquin reports
ALMADEX AMENDS OPTION AGREEMENT WITH ABACUS MINING REGARDING WILLOW PORPHYRY PROPERTY, NEVADA, AND ISSUES STOCK OPTIONS
Almadex Minerals Ltd. has agreed to amend its option agreement with Abacus Mining and Exploration Corp. (AME) in respect of the Willow property located in Douglas county, Nevada.
AME holds an option to earn up to a 75-per-cent interest in the property. Under the original agreement, which was announced on Feb. 15, 2017, AME could earn an initial 60-per-cent interest in the property by incurring work expenditures totalling $3-million (U.S.) and issuing a total of 2.5 million shares (416,668 postconsolidation shares) to the company over a five-year period. Upon having earned this initial interest, AME would be required to incur minimum annual exploration expenditures of $500,000 (U.S.) on the property and, within 10 years, deliver a feasibility study in respect of the property to Almadex, subject to certain rights of extension. AME would earn an additional 15-per-cent interest in the property upon delivery of a feasibility study to Almadex, at which point a 75:25 joint venture would be formed.
To date, AME has not completed the necessary $3-million (U.S.) in cumulative expenditures required to earn its initial 60-per-cent interest in the property. Under the amendment announced today, in return for the issuance of two million shares of AME to Almadex, Almadex has agreed to extend AME's earn-in period to Dec. 31, 2025, on the condition that AME completes $5-million (U.S.) in total expenditures by that time.
Upon completion of this amendment, Almadex will own approximately 2,375,000 shares of AME. Almadex looks forward to AME's continued exploration of this property.
Almadex also announces that, pursuant to its stock option plan, it has granted stock options to directors and an officer of the company to purchase an aggregate 330,000 common shares in the capital of the company at an exercise price of 34 cents per share expiring on Dec. 17, 2027.
Almadex Minerals is an exploration company that holds a large mineral portfolio consisting of projects and net smelter return royalties in Canada, the United States and Mexico. This portfolio is the direct result of many years of prospecting and deal-making by Almadex's management team. The company owns a number of portable diamond drill rigs, enabling it to conduct cost-effective first-pass exploration drilling in-house.
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