Orex Minerals Options Canasil's Sandra-EscobarSilver-Gold Project in Durango State, Mexico
Vancouver, September 15, 2015 - Canasil Resources Inc. (TSX-V: CLZ, DB Frankfurt: 3CC, “Canasil” or the “Company”) is pleased to announce that the Company and Orex Minerals Inc. (TSX-V: REX, “Orex”) have signed a binding Letter Agreement (the “Agreement”) providing for Orex to earn up to a 65% interest in Canasil’s Sandra-Escobar silver-gold-copper-lead-zinc project in Durango State, Mexico. The project is located 200 km northwest of the City of Durango with excellent access and infrastructure, within a prolific mining district hosting several past and present producing mines and significant silver-gold deposits.
Under the agreed terms, Orex will have a first option to earn 55% interest in the Sandra-Escobar project by making a payment of $500,000 to Canasil upon signature of the Agreement and completing US$2,000,000 in exploration and development expenditures (the “Expenditures”) over three years. In connection with the first option, Orex must incur a minimum of US$675,000 in Expenditures in the first year of the Agreement, which is a firm commitment, and a minimum of US$500,000 in Expenditures in the second year of the Agreement. Provided that Orex exercises the first option, Orex will have a second option to earn an additional 10% interest, for a cumulative 65% interest in the Sandra-Escobar project, by completing a further US$2,000,000 in Expenditures within two years of exercising the first option, and by making a payment to Canasil of $500,000 in cash and/or Orex shares, at the option of Orex. In connection with the second option, Orex must incur a minimum of US$675,000 in Expenditures during the first year of the second option.
Bahman Yamini, President and CEO of Canasil commented: “We are very pleased to have concluded this Agreement and regard Orex as an excellent partner to advance the Sandra-Escobar project. The Orex team is comprised of highly qualified mining professionals with a very successful track record of developing significant silver and gold projects, particularly in Durango State, Mexico. We are looking forward to continued exploration programs at the Sandra-Escobar project under this Agreement.”
Sandra-Escobar Silver-Gold Project, Durango, Mexico:
The Sandra-Escobar project is located 200 km northwest of the City of Durango, Mexico, in the heart of the “Mexican Silver Trend”, with excellent access and infrastructure. This prolific trend hosts some of the world’s largest silver camps and deposits with many past and present producing mines and significant silver-gold deposits. The project area covers over 8,100 hectares of mineral concessions with multiple mineralized epithermal veins and breccia structures.
Canasil is a Canadian mineral exploration company with a strong portfolio of 100% owned silver-gold-copper-lead-zinc projects in Durango and Zacatecas States, Mexico, and in British Columbia, Canada. The Company’s directors and management include industry professionals with a track record of identifying and advancing successful mineral exploration projects through to discovery and further development. The Company is actively engaged in the exploration of its mineral properties, and maintains an operating subsidiary in Durango, Mexico, with full time geological and support staff for its operations in Mexico.
For further information please contact:
President and C.E.O.
Canasil Resources Inc.
Tel: (604) 709-0109
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This release includes certain statements that may be deemed to be “forward-looking statements”. All statements in this release, other than statements of historical facts are forward looking statements, including statements that address future mineral production, reserve potential, exploration drilling, exploitation activities and events or developments. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include, but are not limited to, changes in commodities prices, exploration successes, continued availability of capital and financing, and general economic, market or business conditions. The reader is referred to the Company’s filings with the Canadian securities regulators for disclosure regarding these and other risk factors. There is no certainty that any forward looking statement will come to pass and investors should not place undue reliance upon forward-looking statement