EXMIN Closes Sale of Moris Mine Interest to Hochschildadmin
EXMIN Resources Inc. announces that it has completed the previously announced sale of its 30% interest in Minas Santa Maria de Moris, S.A. de C.V., (MSMM), the Mexican company that owns the assets of Moris mine project, for US$1.5 million, to a subsidiary of Hochschild Mining Plc. (Hochschild). The sale was completed pursuant to the exercise of a Right of First Refusal by Hochschild, announced on May 27, 2009.
In late March, EXMIN signed a Letter of Intent to sell its 30% shareholding interest in MSMM to Caza Gold Corp., a private company, which offered to purchase EXMIN’s interest in MSMM for US$1.5 million. The offer was subject to a Right of First Refusal by Hochschild, which owned a 70% interest in MSMM and has been the operator of the project since the companies purchased the Moris mine in December, 2006.
Karl J. Boltz, President & CEO stated, “Over the last nine months, EXMIN has reduced its administrative staff by 90%, reduced its land position by about 250,000 hectares (40%) and cancelled several property option agreements to reduce its cash operating requirements. The Company has now sold two of its projects for cash to raise capital. The net proceeds from the sale of the mine will be applied to EXMIN’s current outstanding liabilities, including property and option payments on the Company’s most advanced projects and will cover a majority of EXMIN’s outstanding liabilities but not all of them.”
“Management is exploring numerous strategic opportunities for the Company, in order to survive and to advance its remaining project portfolio,” Boltz continued. “This process includes discussions with parties interested in considering a potential transaction with the Company, including parties that have entered into confidentiality agreements, although there is no assurance yet that these discussions or due diligence investigations will result in a transaction.”