Aguila American Resources Ltd.

March 03, 2011 08:30 ET

Aguila Negotiates More Favourable Terms for Angostura Gold Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 3, 2011) - Aguila American Resources Ltd. (TSX VENTURE:AGL) ("Aguila") or (the "Company") - Mr. John Huguet Reports:

The Company has entered into a purchase agreement to acquire 100% of the Angostura Gold Project in Peru. This purchase agreement replaces a previous option agreement on the same property. The re-negotiated purchase agreement allows the Company to acquire a 100% interest in the project upon the payment of US $600,000 payable in instalments over two years. A 2% NSR of gross metal sales is payable to the vendor and is capped at $2 million. In the event that production does not commence by May 15, 2012, advance NSR payments of $100,000 per annum are due beginning in May 2013.

The previous option agreement had called for Aguila to acquire only 60% of the project with the same cash payment as the new purchase agreement. The Company was required to perform a $2 million work program as well as issue shares. If the Company advanced the project all the way to bankable feasibility, Aguila could earn an additional 15%, for a final interest of 75%.

"We are very pleased with the re-negotiation of the terms of the Angostura Project agreement. The prospect of owning 100% of this gold project without any further dilution is of significant benefit to our shareholders and allows us much more flexibility as we move forward with development," said John Huguet, President and Chief Executive Officer of Aguila.

The Angostura property is comprised of eight concessions which cover the main portion of the Angostura Gold Project. The project is located in southern Peru in the Department of Apurimac, approximately 430 kilometers southeast of Lima and 180 kilometers southwest of the City of Cuzco.

The agreement is subject to TSXV approval.

On behalf of the Board of Directors,

John Huguet, President & CEO

Aguila American Resources Ltd.

Neither 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.

Contact Information

  • Aguila American Resources Ltd.
    John Huguet
    President & CEO
    604-683-1585 (FAX)