Geologix Explorations Inc.

Geologix Explorations Inc.

March 25, 2010 11:00 ET

Geologix Options Peru Properties to Rae Wallace Mining Company

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 25, 2010) - Geologix Explorations Inc. (the "Company" or "Geologix") (TSX:GIX)(FRANKFURT:GF6)(BERLIN:GF6)(MUNICH:GF6)(STUTTGART:GF6) is pleased to announce it has completed an option agreement with Rae Wallace Mining Company (RWMC) granting RWMC the right to earn a 100% interest in eight of the Company's Peruvian properties.

The option agreement covers the Liscay, Largatija, Lachoc, Mirko, San Felipe, Sura, Toro Blanco and Cayhua properties (the "Properties") which are currently owned 100% by Geologix. Portions of The Liscay, Largatija, Lachoc, and Mirko properties are subject to a 2% precious metals NSR and a 1% base metals NSR payable to Newmont Peru S.A.

RWMC is a private company incorporated in Idaho, USA in 1916 and has been under new management since 2007. It is currently lead by President and CEO George Cole, who is a 35 year veteran of the mining industry and former Vice President of Exploration at Cominco American Inc, and Vice President Steven Friberg, a former consultant with over 35 years in the mining industry. Subsequent to this agreement, RWMC intends to complete a private placement or public financing no later than September 30, 2010 and list its shares for trading on an American and/or Canadian stock exchange.

Dunham Craig, President & CEO stated, "With our aggressive exploration, drilling and development plans for the newly acquired Tepal and Libertad projects in Mexico for 2010, we feel our corporate and technical efforts are best focused in Mexico at this time. As such, we are pleased to have our Peruvian property assets advanced by a company with sound technical expertise and a decided focus on Peru. Furthermore, as future shareholders of RWMC, we see the potential for significant added value to Geologix and its shareholders in this transaction."

Pursuant to the terms of the option agreement, in order to earn a 100% interest in the Properties, RWMC is to:

  1. Pay Geologix US$30,000 on signing of the Letter of Intent ("LOI") (payment delivered March 8, 2010);
  1. Pay Geologix US$67,500 on or before May 31, 2010. Geologix further agrees to use this payment to renew the Properties' concessions for 2010;
  1. Deliver to Geologix, shares of RWMC valued at US$250,000, distributed, as follows:
  1. 500,000 common shares of RWMC to be delivered on or before May 31, 2010, with each share to be accompanied by a half warrant, with each full warrant entitling Geologix the right to purchase one additional common share of RWMC for a period of two years from the date the shares are issued;
  1. An additional payment of RWMC shares and warrants as described in (i) above, shall be delivered within 10 days after RWMC completes a private placement or public financing, but no later than September 30, 2010, such that the total value of shares delivered totals US$250,000

Upon completion of the above exchanges and payments, RWMC shall own the Properties, and Geologix shall execute whatever documents are required to effectuate the exchange of title to the Properties to RWMC.

If RWMC or any of its affiliates should sell, lease, transfer, convey or otherwise disposes of any of the properties or enters into an option or agreement to do any of the same, or if it grants a royalty on the properties, or any portion thereof, to a third party before March 8, 2011, RWMC shall pay Geologix 20% of the proceeds when received by RWMC from such transaction.

RWMC is not obligated to any work commitment on the properties.

Geologix Explorations Inc. is a mineral exploration company focused on acquiring, exploring and developing mineral properties in North and South America.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Geologix Explorations Inc.
    Jeffrey Wilson
    V.P. Corporate Communications
    (604) 694-1742
    Toll Free in Canada and USA: 1(888) 694-1742
    Geologix Explorations Inc.
    Dunham Craig
    President & CEO
    (604) 694-1742