VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 27, 2014) - Geologix Explorations Inc. (TSX:GIX)(FRANKFURT:GF6)(BERLIN:GF6)(STUT:GF6)(MUN:GF6) ("Geologix," the "Company") is pleased to announce the sale of the Company's Nuestra Senora del Carmen II Property to Argonaut Gold Inc. (TSX:AG) ("Argonaut"). Geologix has also executed an assignment to sell Argonaut its Consejo 1 Property. Both properties are located in Mexico. In exchange for these two properties, Argonaut will provide Geologix with total compensation of $600,000 USD.
Argonaut has paid $300,000 USD for both the title transfer of the Nuestra Senora del Carmen II property and for signing a binding assignment to transfer title of the Consejo 1 Property. Argonaut will pay an additional $300,000 to Geologix immediately following the registration of the Consejo 1 Property's title in Geologix's name by the Mexican Public Registry of Mining, as well as the subsequent transfer to Argonaut. The registration process has been completed and is expected to be formalised by the Public Registry in the near future. In the interim, Argonaut may access the Consejo 1 Property for exploration and development purposes.
"We are pleased to divest of these non-core assets, which have been in Geologix's inventory for more than five years," stated Dunham Craig, the Company's President and Chief Executive Officer. "We continue to focus on advancing our recently permitted and promising Tepal Project towards production. The sale of these assets will allow us to remain patient as we search for a financing arrangement that supports that larger objective."
On behalf of the Board of Directors,
Dunham Craig, President & CEO
Geologix Explorations Inc. is a mineral exploration and development company focused on acquiring, exploring, and developing mineral resource opportunities with the potential to host profitable mining operations. The Company's primary focus is the Tepal Gold-Copper Porphyry Project in Michoacán state, Mexico. In March 2013, the Company announced a Prefeasibility Study for the Project that indicated an 11.5 year mine life with payable production of 1.12 M oz. gold and 503 M lbs., resulting in a post-tax NPV of $421 million at a 5% discount rate. The positive results of this study have led the Company to continue to work towards both completing a Feasibility Study for the Project and arranging the necessary financing to advance the Project to production.
This Press Release contains statements which constitute 'forward-looking, including statements regarding the plans, intentions, beliefs and current expectations of the Company, its directors, or its officers with respect to the future business activities and operating performance of the Company. The words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions, as they relate to the Company, or its management, are intended to identify such forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future business activities or performance and involve risks and uncertainties, and that the Company's future business activities may differ materially from those in the forward-looking statements as a result of various factors. Such risks, uncertainties and factors are described in the periodic filings with the Canadian securities regulatory authorities, including the Company's Annual Information Form and quarterly and annual Management's Discussion & Analysis, which may be viewed on SEDAR at www.sedar.com. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update these forward-looking statements.