This Exploitation Agreement is an agreement for mining operation services to 'reengage' the mining activities that the previous tenant, URBYASA, was conducting.
The Company has entered into a 5-year contract with OZTOC to extract available gold at Galore's 100% owned
Highlights to the terms of the Agreement
Under the Exploitation Agreement, Galore will maintain 100% legal interest and title in the
This Agreement is a service agreement, whereas OZTOC is providing mining and operational services to Minerals Galore.
This Agreement provides for a 30% split of the Gross Revenues in favour of Galore after payment of government duties and taxes, with the balance of 70% going to OZTOC for (i) its expenses related to the development and production of the
All equipment, maintenance, personnel, permits, fees, expenditures and any and all cost associated with the mining activities covering the
Galore retains the right to conduct any and all exploration activities in the Mineral Claims to further Galore's technical data base, which may be used by OZTOC to aid in understanding of the local geology in its operation.
All proceeds from the sale of concentrated material will be handled by an independent third-party fiduciary to ensure the integrity.
Galore's decision to proceed with OZTOC is not based on a feasibility study of mineral reserves demonstrating the economic or technical feasibility of the project. There are known risks to such projects, but these risks lie with OZTOC, which has reviewed the available data on the associated claims and has taken independent sampling. Galore is not relying on this Exploitation Agreement for the survival of the Company. The parties intend to proceed to production without the benefit of first establishing mineral reserves supported by a feasibility study. Galore cautions that any production decision made by the parties will not be based on a NI 43-101 feasibility study of mineral reserves that demonstrates economic and technical viability and as such, there may be involved increased uncertainty and various technological and economic risks such as the interpretation of drill results; the geology, grade and continuity of mineral deposits; the possibility that future exploration, development or mining results will not be consistent with our expectations; commodity and currency price fluctuation; failure to obtain adequate financing; regulatory, recovery rates, refinery costs, and other relevant conversion factors, permitting and licensing risks; general market and mining exploration risks and production and economic risks related to design and engineering, manufacturing, technological processes and test procedures and the risk that the project's output will not be salable at a price that will cover the project's operating and maintenance cost. Galore's Management believes this is a very fair and mutually beneficial agreement to both Galore and OZTOC.
Galore's President and CEO
OZTOC will begin by assessing the infrastructure, utilities, and equipment that remains at the
Contact:
Tel: 210-325-7971
Email: info@galoreresources.com
About
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
This news release includes 'forward-looking statements' and 'forward-looking information' within the meaning of Canadian securities legislation. All statements included in this news release, other than statements of historical fact, are forward-looking statements. Forward-looking statements include predictions, projections and forecasts and are often, but not always, identified by the use of words such as 'anticipate', 'believe', 'plan', 'estimate', 'expect', 'potential', 'target', 'budget' and 'intend' and statements that an event or result 'may', 'will', 'should', 'could' or 'might' occur or be achieved and other similar expressions and includes the negatives thereof.
Forward-looking statements in this news release include, but are not limited to, statements with respect to the expectations of management regarding the Company's ability to conduct a drill program at its Mexican mineral properties and the timing thereof, the prospective deposits, targets and mineralization at the properties and the anticipated receipt and timing of necessary governmental or third-party approvals and permits.
Such forward-looking information reflects management's current beliefs and is based on a number of estimates and assumptions made by and information currently available to the Company that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information. Forward-looking statements should not be construed as investment advice. Readers should perform a detailed, independent investigation and analysis of the Company and are encouraged to seek independent professional advice before making any investment decision. Accordingly, readers should not place undue reliance on forward-looking information. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
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