TORONTO, ONTARIO--(Marketwired - Oct. 24, 2013) -
NOT FOR DISTRIBUTION TO UNITED STATES WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
Oremex Silver Inc. ("Oremex" or the "Company") (TSX VENTURE:OAG) announces that the Company and its wholly-owned Mexican subsidiary, Minera Mantos S. de R.L. de C.V. ("Minera Mantos"), have entered into an agreement (the "Agreement") with First Majestic Silver Corp. ("First Majestic") (TSX:FR)(NYSE:AG) pursuant to which the Company and Minera Mantos will grant to First Majestic an option to acquire, through a wholly-owned Mexican subsidiary, each of (i) an undivided 100% registered and beneficial title to the Company's Chalchihuites mineral exploration property and (ii) all of the right, title and interest of the Company in the Navidad mineral exploration property as at the time of the exercise of the Company's option in relation thereto (collectively, the "Properties") in exchange for the aggregate option payment of $1,500,000 (the "Option Payment"). Oremex considers the Properties to be non-core assets of the Company.
The Option Payment shall be satisfied by payment by First Majestic to the Company of $834,400 in cash (inclusive of a $150,000 deposit) with the remainder to be paid in four annual installments.
Mr. John Carlesso, Executive Chairman of Oremex Silver stated "The Board of Oremex continues to execute its strategy of realizing financial value for the non-core assets within its silver portfolio that it has built over the past several years. In a volatile and uncertain market environment Oremex has now executed two significant transactions that will provide the company with a valuable measure of stability:
- The dispositions of the non-core El Sol and Chalchihuites projects will generate more than $3.5 million in non-dilutive cash to the Company in the coming years
- The cash guarantees the Company's ability to honour its interest payment obligations through to the maturity of the outstanding debentures
- The cash will make a valuable contribution to the Company's ongoing efforts to focus on the development of its flagship Tejamen deposit
Oremex continues to evaluate other opportunities to realize additional financial value for its non-core assets as it focuses on bringing the Tejamen deposit closer to feasibility through the successful resolution of surface access issues."
About Oremex Silver Inc.
Oremex is a Canadian company focusing on the exploration and development of silver projects along the highly productive mineralized belt in Mexico. The Company has a portfolio of silver projects including a mineral resource of 50.8 million ounces of silver at its Tejamen deposit. The Company's projects are located in mining-friendly jurisdictions and the management team has a successful track record of mine-building in Mexico.
Cautionary Note Regarding Forward-Looking Statements
Certain statements contained in this news release may constitute forward-looking information (collectively "forward-looking information") within the meaning of Canadian securities laws. Forward-looking information may relate to this news release and other matters identified in Oremex's public filings, anticipated events or results and can be identified by terminology such as "may", "will", "would", "could", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "projects", "predict", "potential", "continue" or other similar expressions concerning matters that are not historical facts and include, but are not limited in any manner to, those with respect to entering into definitive and binding agreements with respect to financings, capital and operating expenditures, economic conditions, availability of sufficient financing, receipt of approvals, the receipt of exemptive relief from securities requirements, satisfaction of closing conditions and any and all other timing, development, operational, financial, economic, legal, regulatory and/or political factors that may influence future events or conditions. Such forward-looking statements are based on a number of material factors and assumptions, including, but not limited in any manner to, those disclosed in any other public filings of Oremex, and include the ultimate availability and final receipt of required approvals and/or exemptive relief, the decision of third parties to consummate definitive agreements with Oremex, sufficient working capital for development and operations, access to adequate services and supplies, availability of markets for products, commodity prices, foreign currency exchange rates, interest rates, access to capital markets and other sources of financing and associated cost of funds, availability of a qualified work force, availability of manufacturing equipment, no material changes to the tax and regulatory regime and the ultimate ability to execute its business plan on economically favourable terms. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Actual results may vary from such forward-looking information for a variety of reasons, including but not limited to risks and uncertainties disclosed in other Oremex filings on www.sedar.com and other unforeseen events or circumstances. Other than as required by law, Oremex does not intend, and undertakes no obligation, to update any forward looking information to reflect, among other things, new information or future events.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.