AndeanGold Ltd.
TSX VENTURE : AAU
LMA : AAU

AndeanGold Ltd.

December 23, 2014 16:39 ET

AndeanGold Closes Purchase to Own 100% of Urumalqui Silver-Gold Project, Peru

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Dec. 23, 2014) - AndeanGold Ltd. ("the Company" or "AndeanGold") (TSX VENTURE:AAU)(LMA:AAU) is extremely pleased to announce that it has completed the purchase of a 40% interest in the Urumalqui Silver-Gold Project, Peru, with the result that the Company now owns a 100% interest in the Project.

At the closing, the Company paid $125,000 to the vendor, Gitennes Exploration Ltd., and has agreed to make the following cash payments:

  1. $150,000 on or before February 15, 2015;
  2. $150,000 on or before April 19, 2015, and
  3. $175,000 on or before June 21, 2015;

If there are any amounts outstanding by June 21, 2015 then those will convert to an Unsecured Convertible Debenture with a three year term, a coupon of 6% per annum and, subject to TSX Venture Exchange acceptance, a conversion price of CAD$ 0.06 per AndeanGold share.

The Vendor retains a 1.5% net smelter returns royalty.

About AndeanGold Ltd:

AndeanGold Ltd. is engaged in the acquisition, exploration and potential development of metals properties, principally in Peru and Ecuador. The focus of the Company's exploration activities is presently in advancing its Urumalqui Project, Peru. In Ecuador, the Company's activities have been limited to maintaining its three properties. In September 2012, the Company received authorization from the MRNNR to renew exploration programs on its Ecuadorian Curiplaya Project. Please refer to AndeanGold's website at www.andeangoldltd.com for further information on the Company's projects and activities.

On Behalf of the Board of Directors of ANDEANGOLD LTD.

Alexander Peña Böttcher, Interim President and CEO

Neither the 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.

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