Azteca Gold (VAN:AZG) (PK:AZGFF) said it has agreed to acquire the rest of the 50 percent stake in the Two Mile Property joint venture it has with Silver Royal Apex.
Terms of the deal will be for $6.1 million in stock.
To pay for the acquisition Azteca said they're going to issue 128 million in restricted common shares to Silver Royal Apex. Those shares won't be allowed to be traded until four months after the deal is closed.
Azteca Chief Executive Matthew Russell gave the reasons for the acquisition as this, "Challenging market conditions and other factors prevented SRA from meeting its financial obligations under the joint-venture, despite several extensions of time, as well as an agreed-upon slower exploration program."
Azteca has also settle outstanding debt it has with drill contractor Ruen Drilling, for $3.03 million.
With the upcoming equity offering Azteca will pay Ruen $1.63 million over an eight-week period, and what is owed after that will be paid at an annual 6 percent finance charge.
Per the terms of the settlement, Ruen will start drilling at the Two Mile Project site the week of July 12 .
Azteca also said they've acquired another 15 unpatented mining claims, this time from Shoshone Silver/Gold Mining Company, which brings their total on the Two Mile Property project to 725 unpatented mining claims.
Showing posts with label Two Mile. Show all posts
Showing posts with label Two Mile. Show all posts
Friday, July 2, 2010
Saturday, January 3, 2009
Azteca Gold Corp. Announces First Closing of Private Placement
SPOKANE, WASHINGTON, Jan 02, 2009 (MARKET WIRE via COMTEX) ----Matthew Russell, President of Azteca Gold Corp. (TSX VENTURE: AZG) ("Azteca" or the "Company") announces that on December 31, 2008 the Company closed a non-brokered private placement for gross proceeds of $1,183,302. The Company issued 23,666,044 units, each unit consisting of one common share and one-half share purchase warrant. Each warrant entitles the holder to purchase one common share for $0.25 until December 31, 2010. Shares issued pursuant to this financing are subject to a 4 month hold period ending May 1, 2009.
The Company will extend the private placement by conducting a second and final closing on or before Wednesday, January 7, 2009. The Company will sell up to an additional 10,000,000 Units for gross proceeds of CAD $500,000.
Funds will be used for drilling and assaying expenses on the Company's 50% owned Two Mile Project as well as general working capital. Insiders subscribed for 63.1% of the amount raised.
Timing of Two Mile Project Assays
The Company expects to receive first preliminary assays on the mineralization of hole DDH-005A from the assay lab the week of January 5, 2009. Assaying and subsequent assay releases will be ongoing for holes DDH-005A, DDH-005B, and DDH-006 during 2009.
WARNING: the Company relies upon litigation protection for "forward looking" statements. The information in this release may contain forward-looking information under applicable securities laws. This forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those implied by the forward-looking information. Factors that may cause actual results to vary materially include, but are not limited to, changes in laws or regulations, the risks of obtaining final approval from necessary regulatory bodies in connection with the Private Placement, inaccurate assumptions concerning the exploration for and development of mineral deposits and timing related to receipt of the preliminary assays. Readers are cautioned not to place undue reliance on this forward-looking information. The Company does not assume the obligation to revise or update this forward-looking information after the date of this release or to revise such information to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws.
Shares issued: 136,441,996
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Contacts: Azteca Gold Corp. Jon Slizza VP of Finance (509) 981-2020
Email: info@azteca-au.com SOURCE: Azteca Gold Corp.
mailto:info@azteca-au.com Copyright 2009
Market Wire, All rights reserved.
The Company will extend the private placement by conducting a second and final closing on or before Wednesday, January 7, 2009. The Company will sell up to an additional 10,000,000 Units for gross proceeds of CAD $500,000.
Funds will be used for drilling and assaying expenses on the Company's 50% owned Two Mile Project as well as general working capital. Insiders subscribed for 63.1% of the amount raised.
Timing of Two Mile Project Assays
The Company expects to receive first preliminary assays on the mineralization of hole DDH-005A from the assay lab the week of January 5, 2009. Assaying and subsequent assay releases will be ongoing for holes DDH-005A, DDH-005B, and DDH-006 during 2009.
WARNING: the Company relies upon litigation protection for "forward looking" statements. The information in this release may contain forward-looking information under applicable securities laws. This forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those implied by the forward-looking information. Factors that may cause actual results to vary materially include, but are not limited to, changes in laws or regulations, the risks of obtaining final approval from necessary regulatory bodies in connection with the Private Placement, inaccurate assumptions concerning the exploration for and development of mineral deposits and timing related to receipt of the preliminary assays. Readers are cautioned not to place undue reliance on this forward-looking information. The Company does not assume the obligation to revise or update this forward-looking information after the date of this release or to revise such information to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws.
Shares issued: 136,441,996
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Contacts: Azteca Gold Corp. Jon Slizza VP of Finance (509) 981-2020
Email: info@azteca-au.com SOURCE: Azteca Gold Corp.
mailto:info@azteca-au.com Copyright 2009
Market Wire, All rights reserved.
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