Apogee Enters Into Definitive Agreement to Acquire a 100% Interest in the Pulacayo-Paca Silver Project, Bolivia
TORONTO, ONTARIO, Jan 21, 2011 (MARKETWIRE via COMTEX News Network) --
Apogee Minerals Limited ("Apogee" or "the Company") (TSX VENTURE: APE) is pleased to announce that it has entered into a definitive agreement (the "Agreement") with Golden Minerals Company ("GMC") (TSX: AUM)(NYSE Amex: AUMN) to acquire all of the issued and outstanding shares of an indirectly held subsidiary of GMC which holds a 100% interest in the Pulacayo-Paca Project. The Pulacayo-Paca Project, located in southern Bolivia, was previously subject to a joint venture agreement between the Company and GMC wherein the Company has the right to acquire up to a 60% joint venture interest in the Pulacayo-Paca Project. Upon completion of the proposed transaction, the Company will acquire a 100% interest in the property.
Pursuant to the Agreement, the Company shall acquire all of the issued and outstanding shares of a subsidiary of GMC, which holds a 100% interest in the Pulacayo-Paca Project. In consideration, Apogee shall issue 5,000,000 common shares of the Company (the "Common Shares") upon closing of the transaction and shall issue an additional 3,000,000 Common Shares and shall pay GMC a cash fee in the amount of $500,000 eighteen (18) months following closing of the transaction. Closing of the transaction is scheduled to occur next week and remains subject to the receipt of all necessary regulatory and securities approvals, including the approval of the TSX Venture Exchange, along with other customary closing conditions.
David Gower, P.Geo., the C.E.O. of the Company, noted, "Today's announcement represents a major achievement for Apogee and provides an immediate boost to the silver resource base owned by the Company. Golden Minerals has been an excellent partner and we are pleased to have their continued involvement as a major shareholder of Apogee. This transaction solidifies our commitment to the development and further exploration of the Pulacayo-Paca Project."
For detailed project information please refer to Apogee's web site at www.apogeeminerals.com.
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