Valencia Sells Interest in Cachinal Silver Project – Chile
Valencia Ventures Inc. announced that it has entered into an agreement to sell up to a 100% interest in its Cachinal Silver Project, Chile to Apogee Minerals Ltd.
Under terms of the Agreement, Apogee will purchase 75% of Valencia’s interest in the Property by paying $200,000 in cash and issuing 3 million units of Apogee where each unit will comprise one Apogee share and one Apogee warrant with an exercise price of $0.25 for a period of 12 months. Apogee will have the option to purchase the remaining 25% interest by paying Valencia $1 million at any time prior to the third anniversary of the definitive agreement.
This sale and option agreement represents the completion of the efforts of Valencia management to dispose of an interest in its Chilean properties or its Chilean subsidiary that holds interests in the Cachinal and Nuevo Juncal silver projects in Chile, in order to fund ongoing expenditures. Valencia is continuing discussions with a third party who expressed an interest in the Nuevo Juncal property; however, at this point there is no certainty that a sale or joint venture agreement will be reached. Valencia is also seeking a new opportunity that would enable the Company to raise additional financing such that it can grow shareholder value.
Valencia’s President & CEO, Mr John Begeman stated: “Apogee’s offer to purchase an initial 75% interest in the Cachinal property will allow the Company to maintain an interest in the Cachinal Silver Project, where we believe there remains potential for the discovery of additional silver resources, while minimizing the financial costs to the Company.” He added: “We wish them every success in their efforts to make additional discoveries.”
Completion of the acquisition remains subject to, among other things, receipt of all regulatory approvals, including the approval of the TSX Venture Exchange. The acquisition is a non-arm’s length transaction for the purposes of the TSX Venture Exchange as Apogee and Valencia have a common director, being Mr. Stan Bharti, and a common officer, being Mr. Greg Duras who is the Chief Financial Officer of both Apogee and Valencia.