Mr. Morgan Poliquin reports
ALMADEX OPTIONS PONDEROSA PROPERTY IN SPENCES BRIDGE GOLD BELT
Almadex Minerals Ltd. has optioned 60 per cent of its Ponderosa project to 1201361 BC Ltd., a private British Columbia company at arm's-length to Almadex.
Under the terms of the agreement, the optionee can acquire a 60-per-cent interest in the project by:
- Issuing Almadex 5 per cent of its issued capital on a fully diluted basis on closing, with a top-up to this amount at the time of a "liquidity event";
- Completing $500,000 in work, including 500 metres of drilling, on the project within three years;
- Completing a liquidity event within four years.
Amongst other things, a liquidity event is some form of transaction which results in the optionee's, or its affiliates, common shares becoming publicly traded on a recognized stock exchange.
Upon completion of the 60-per-cent earn-in, Almadex and the optionee have agreed to immediately form a 40/60 joint venture for the purpose of carrying out further exploration work on the project with optionee as operator and straight-line dilution for failure to participate in work programs. If either party's participating interest falls below 10 per cent, its interest will be converted into a 2-per-cent net smelter returns royalty.
Almadex, its predecessors and partners have worked in the Spences Bridge area since about 2002. J. Duane Poliquin, chairman of Almadex, stated, "We have now optioned all of our Spences Bridge property holdings to partners and look forward to active exploration on our properties over the coming years."
Almadex is an exploration company that holds a large mineral portfolio consisting of projects and NSR royalties in Canada, the United States and Mexico. This portfolio is the direct result of over 35 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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