Show printable version of 'Terms of the Purchase Transaction:' in a New Window

Tepal Project

Terms of the Purchase Transaction:

ValOro holds a 100% interest in the property subject to a 2.5% NSR having satisfied all obligations
On September 24, 2009 the Company and Arian Silver Corp. ("Arian") entered into a letter agreement which was followed up by a definitive agreement whereby the Company was granted the exclusive rights to purchase Arian's 100% interest in the Tepal Gold-Copper Project in the state of Michoacán, Mexico. Under the terms of the agreement, the Company completed the purchase of 100% of the property, by delivering to Arian US$3.0 million in staged payments.

The Company also assumed the balance of Arian's obligations under the terms of an underlying property option agreement with Minera Tepal SA de CV ("Minera Tepal") subject to a 2.5% NSR and has completed staged payments to the underlying property vendor of US$ 3,200,000. Under the terms of the NSR agreement, ValOro has a right of first refusal to purchase the NSR from Mineral Tepal.